In the ongoing era of regionalism, several international institutions emerged to find out the country related specific issues. G20 is one of them which provides a platform for both developed and developing countries to sort out the current burning challenges that are confronting the world…
By Aakriti Yadav…
What is G20?
Group of 20 or G20 is an intergovernmental forum of the world’s developed and developing economies. It comprises 19 countries and the European Union. The member nations are- the United States of America, Canada, Mexico, Brazil, Argentina, Australia, Japan, China, India, Indonesia, Saudi Arabia, South Africa, Turkey, Italy, France, Germany, Russia, the United Kingdom, Republic of Korea and the European Union.
It is also known as the power of 20. It does not have a permanent headquarter. Instead, the summit rotates among the member nations annually to ensure a regional balance over time. Every year when a new country takes on the presidency, it works hand in hand with the previous and the next presidents; this is collectively known as ‘TROIKA’. This ensures the continuity and consistency of the group’s agenda.
G20 originated to solve the Asian financial crisis of 1997. A ministerial-level forum emerged after G7 invited both developed and developing economies. The finance ministers and central bank governors began meeting in 1999.
How G20 Works?
The work of G20 is divided into two parallel tracks- the Finance track and the Sherpa track. Finance ministers and Central Bank governors lead the finance track. Their meetings mainly focus on monetary and fiscal issues, financial regulations, etc. While the sherpas (representatives) of member countries represent the sherpa track and focus on broader issues such as political engagement, anti-corruption, development, energy, climate change, etc.
- The group of 20 is an important platform representing around 85% of global GDP, over 75% of global trade, and about two-thirds of the world’s population.
- It brings together the world’s industrialized and emerging economies.
- It strengthens partnerships with several international organizations such as World Bank, International Monetary Fund (IMF), World Health Organization (WHO), International Labour Organization (ILO), etc.
- The G20 also regularly engages with non-government sectors such as the Business to Business group (B2B), Think Tank, Development Working Group (DWG) of the Sherpa, etc.
- It helps in reforming and monitoring international financial institutions such as making norms on OECD Base Erosion and Profit Shifting (BEPS) and encourages Foreign Direct Investment (FDI) and Foreign Portfolio Investors (FPI) for better credit inflow, particularly in underdeveloped nations.
- G20 allocated an emergency fund for the 2008 Asian financial crisis and provides a bail-out package for the nations that suffered in this crisis. The platform pledged to provide funds to cover the losses that occurred during the Covid-19 pandemic. Thus acting as a contingency reservoir for unforeseen conditions.
- The G20 focuses on a broad agenda of global issues like tax and fiscal policy, trade, agriculture, employment, energy, anti-corruption, sustainable development, climate change, global health, women-led development, education, anti-terrorism, technological transfer, tax evasion and money laundering, remittances, digital currency, and more inclusive and resilient growth, etc.
- It bound ties with the member countries to promote prosperity, peace, and security in the world.
- G20 plays a critical role in facilitating goods and services among nations.
- It promotes the historical, cultural, regional, and social development of the individual country and gives the opportunity to hold the annual presidency of the grouping.
- It is like an economic pressure group that make bargaining in international trade and other issues.
Indian Presidency of G20-
India is currently a part of G20 troika and assumed the presidency of the G20 grouping in 2023. To cannot that the world is one, that humanity is one and the part of one family; the theme of India’s G20 presidency is based on the notion of ”Vasudhaiva Kutumbakam- one Earth one Family one Future”.
Through the presidency, India’s objective is to be the ”Voice of the Global South’‘ that is otherwise under-represented on international forums. It is an opportunity for India, the G20 meeting on the holy land of Buddha and Gandhi to send a strong message of peace to the world that “this Era must not be for the war”. Buddha’s message of freedom from war and Gandhi’s solution in resistance to violence give the philosophy of the unity of the living being should become to solve today’s global conflicts and dilemmas. Thus advocating the fundamental of oneness of the human race. Further, the philosophy of Advaitvad gives solutions to the world’s ills.
Opportunities for India-
The G20 will also be a chance to showcase India, the largest democracy of the world, its glory and diversity. It will also have an opportunity to show the member nations its new height of excellence in the field of development. There are the following opportunities for India while assuming the presidency of G20:
- India is representing the voice of the global south i.e. the region of developing countries that are suffering from the multifaceted shock of financial and liquidity crunch, external debt crisis, etc.
- India is the world’s 5th largest economy and we are poised to become a high-income country by 2047 so there is a huge potential for the country.
- Strong manufacturing and export growth, top FDI destination, and remittances are driving our economic development.
- India is blessed by a rich demographic dividend which has the potential to attract multinational companies to invest in India.
- India is making path-breaking progress in the field of digital technology, vaccination development, genetically modified technology, innovation, invention, science, and developmental research.
- We are the leader in climate change. Prime Minister of India had insisted to adopt ”LIFESTYLE” for the environment i.e. LiFE agenda.
- The country is also taking steps in the field of renewable sectors by promoting the use of CNG buses, solar rooftops, electric vehicles, ethanol-blended petrol, etc. for more environment-conducive policies.
- As in 2023, the world is celebrating ‘International millets year’ which provides an opportunity to promote our agriculture sector by bringing diversification in the production of millets.
- The country is also making progress in the space sector by launching indigenous missiles, etc.
- It also shows the cultural diversity of the country.
Challenges for India-
- Twin crises produced by covid-19 and the Russia-Ukraine war have had a disproportionate impact on the world which aggravated 3Fs- food, fuel, and fertilizer.
- While India’s GDP growth prospects are bright inflation is under control the fiscal deficit is the highest among all the G20 countries, it needs to be brought down.
- The country’s per capita GDP is the lowest among many nations of the G20.
- We have some of the most polluted rivers and cities of the world which are unfit for working and living.
- We have to more focus on science and technology and effective administration of governance rather than only philosophical talking.
- India needs a balance between nationalism and internationalism.
- India’s own past experience with the non-aligned movement (NAM) points out the real difficulty of the Global South.
- The rising popularity of cryptocurrencies raised economic vulnerability mainly for developing conditions.
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