An explainer on G20—a topic the world has been talking about since the past few days
New Delhi: The G20 Summit has been the talk of the town since the past few months with the topic gathering steam as the big day neared. In its inaugural episode of IR Smart Class, IndiaRetailing attempts to explain the topic.
What is G20?
Founded in 1999 after the financial crisis of 1997-1998, the Group of 20 or G20 is an alliance between 19 countries and the European Union for economic co-operation.
The members of G20 represent about two-thirds of the world’s population, around 85% of the world’s GDP, and over 75% of the global trade.
Together, the G20 block (as it is referred to), plays a critical role in shaping and strengthening global architecture and governance on all major international economic issues.
Due to its economic and financial nature, the G20 was as a forum for finance ministers and governors of central banks of member nations, when it started.
In 2008, it was upgraded to include heads of state or governments in the wake of the global economic and financial crisis of 2007. It was designated the status of a “premier forum for international economic cooperation in 2009.
Over the years, the G20’s agenda has expanded from simply focusing on macroeconomic issues to include trade, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption.
Who are its members?
The members of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, the United Kingdom, the United States, and the European Union.
How does G20 work?
Each year, a member country is given Presidency and is responsible for bringing together the G20 agenda for the year in consultation with other members in response to global economic developments during that year.
In addition to driving the year’s agenda, the G20 Presidency also hosts the Summit.
Furthermore, it can invite guest countries to participate. Spain is invited as a permanent guest.
The Group does not have a permanent secretariat unlike the World Trade Organisation (WTO), which has a secretariat based in Geneva.
The Presidency is supported by the Troika, comprising previous, current and incoming Presidency.
India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023.
During India’s Presidency, the troika will comprise Indonesia, India and Brazil, respectively.
In addition to the Summit, G20 organises meetings between ministers, sherpas (personal representatives of a country’s leader) and working groups and special events are organised throughout the year.
Furthermore, there exist collaborative networks known as engagement groups that unite various stakeholders from G20 nations, including civil society organizations, parliament members, think tanks, women and youth groups, labour representatives, businesses, and researchers.
What is the G20 Summit?
Held annually, the G20 Summit is a conference hosted under the leadership of a rotating Presidency. It brings together heads and other representatives of the participating countries to discuss the broad agenda.
Under India’s Presidency the G20 Summit 2023 is being held this year New Delhi.
The theme of India’s G20 Presidency is “Vasudhaiva Kutumbakam” or “One Earth · One Family · One Future” closely ties with LiFE (Lifestyle for Environment).
In 2022, the G20 Summit was held in Bali with Indonesia holding the G20 presidency. Brazil will host the G20 Summit in 2024, followed by South Africa in 2025.
What is its significance to India’s economy?
According to the Boston Consulting Group, this will be India’s Decade. And the success of India’s Chandrayaan Mission 3 has further reiterated the fact.
India’s presidency of G20, is important as it comes at a point when India is being recognised as a power to reckon with on every front.
With India leading the charge, the Summit will open up several opportunities and avenues across industry sectors for the country.
