The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). The G20 was established in 1999 in the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia. It aims to secure global financial stability by involving middle-income countries.
Together, the G20 countries include:
- 60 % of the world’s population,
- 80 % of global GDP,
- 75 % of global trade.
Members of G20:
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union (EU).
Also, Spain is the permanent guest of G20.
Features of G20
1. The G20 has no permanent secretariat. The agenda and work are coordinated by representatives of the G20 countries, known as ‘Sherpas’, who work together with the finance ministers and governors of the central banks.
2. The primary mandate of the grouping is for International Economic cooperation with particular emphasis to prevent future financial crises across the world.
3. It plays a significant role in shaping the global economic agenda.
From 1999-2008 the forum exalted from a grouping of Central bank governors and finance ministers to Heads of states.
G20 Agenda
Financial Focus
The initial G20 agenda, focused on the sustainability of sovereign debt and global financial stability in an inclusive format that would bring in the largest developing economies as equal partners. Further, the recurring themes covered by G20 summit participants have related in priority to global economic growth, international trade and financial market regulation.
Inclusive growth
After the adoption of the UN Sustainable Development Goals and the Paris Climate Agreement in 2015, more “issues of global significance” were added to the G20 agenda, which include migration, digitization, employment, healthcare, the economic empowerment of women and development aid.
India’s role in G20 Presidency in 2023
The Ministry of External Affairs (MEA) announced that India is hosting the G-20 (Group of 20) leaders’ summit in New Delhi in 2023. India holds the Presidency of the G20 from December 1,2022 to November 30, 2023. The 43 delegations (the largest ever in G20) will be participating in the final New Delhi Summit in September 2023.
The theme of India’s G20 Presidency is – “Vashudhaiva Katumbakam” or “One Earth. One Family. One Future”.
India, as G20 Presidency, will be inviting Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and UAE as Guest countries.
During the Presidency, India, Indonesia and Brazil would form the troika (Troika refers to the top grouping within the G20 that consists of the current, previous and the upcoming presidencies). This would be the first time when the troika would consist of three developing countries and emerging economies, providing them a greater voice.
India’s Thrust Areas in G20
Terrorism
International action on terrorism is the need of the hour as the roots of terrorism may be in some other country; the conspiracy could be hatched in some third country, and the actual target maybe another country like India. It, therefore, requires global action, particularly regarding the money that flows into terrorist network from different parts of the world. G20 grouping can be leveraged withy countries facing similar issues, to tackle the threats of terrorism.
Economic Offenders
Dealing with the economic offenders has been emphasized by India as a serious policy challenge for India and other countries in G20. India reiterated this in the Osaka Summit as well. India has proposed this idea and sought cooperation from other G20 countries as well. Also, this proposal has been received quite well by other member countries as well.
Taxation
Global taxation is another issue for G20 to deal with. G20 has already taken cognizance of this fact and has come up with the Base Erosion and Profit Sharing (BEPS) framework. Going further, this framework needs to be strengthened to deal with challenges from spread of Global Supply chains and expanding E-Commerce.
New Digital Technologies
Innovations in digital technologies are rapid and spreading faster across the world. Although the benefits of digital technologies for economic growth and social development are well-known, there are certain issues such as privacy, data security and digital governance which are to be properly understood. Hence, India is working with these countries to tackle the vulnerabilities, and ethical issues arising out of such technologies.
Key priorities of the G20 Presidency of India:
Climate Finance and LiFE
Climate change is a key priority for India’s presidential Presidency, with a particular focus towards not only climate finance and technology, but also ensuring just energy transitions for developing nations across the world. Understanding that the issue of climate change cuts across industry, society, and sectors, India offers the world LiFE (Lifestyle for Environment) -a behavior-based movement that draws from our nation’s rich, ancient sustainable traditions to nudge consumers, and in turn markets, to adopt environmentally-conscious practices. This ties closely with India’s G20 theme: ‘Vasudhaiva Kutumbakam’ or ‘One Earth. One Family. One Future.
Inclusive and Resilient Growth
An accelerated, resilient and inclusive growth is a cornerstone for sustainable development. During its G20 Presidency, India aims to focus on areas that have the potential to bring structural transformation. This includes an ambition to accelerate integration of MSMEs in global trade, bring in the spirit of trade for growth, promote labor rights and secure labor welfare, address global skills gap, and build inclusive agricultural value chains and food systems etc.
Accelerating progress on SDGs
India’s G20 Presidency collides with the crucial midpoint of the 2030 Agenda. As such, India acknowledges the detrimental impact of COVID-19, which changed the current decade of action into a decade of recovery. In line with this perspective, India wants to focus on recommitting G20’s efforts to achieving the targets laid out in the 2030 Agenda for Sustainable Development.
Digital Public Infrastructure & Technological Transformation
As G20 Presidency, India can foreground its belief in a human-centric approach to technology, and facilitate greater knowledge-sharing in priority areas like digital public infrastructure, financial inclusion, and tech-enabled development in sectors ranging from agriculture to education.
Women Development
India hopes to use the G20 forum to highlight inclusive growth and development, with women empowerment and representation being at the core of India’s G20 deliberations. This includes a focus on bringing women to the fore, and in leading positions, in order to boost socio-economic development and achievement of SDGs.
Conclusion
India kick-started its presidency term agenda with a series of cultural initiatives that included various Jan Bhagidari activities, a special University Connect event with 75 educational institutions from across the country, the lighting up of 100 ASI monuments with the G20 logo and colors, and showcasing G20 at the Hombill festival in Nagaland. Sand artist Shri Sudarshan Pattnaik also created sand art of India’s G20 logo on Puri beach in Odisha. Various other events, youth activities, cultural performances, and site excursions showcasing the sights and traditions of respective city-venues, are also planned throughout the year-long calender.