INDIA’S G20 PRESIDENCY
WHY IN NEWS?
- India holds the Presidency of the G20 from December 1, 2022 to November 30, 2023. The 43 Heads of Delegations- the largest ever in G20-will be participating in the final New Delhi Summit in September next year.
- The G20 grouping was started in 1999 as aftermath of Asian Economic crisis, 1997 to mitigate further financial crisis.
- The Group of Twenty (G20) is an intergovernmental forum comprising 19 countries – Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom and United States and the European Union.It has both developed and developing countries.
- Till 2008 it was a summit of Financial ministers and Central Bank Governors, since 2008 it has become summit of Head of the states.
- Initially it focused mainly on economic and financial stability, after 2008 it also focused on political issues.
- 80% of Gross World Product and 75% of international trade takes through this.2/3rd of the population reside in these countries.
- Since 2008, 17 summits have been concluded, the next to be concluded in India.
- Apart from the 20 members there are invitees to the meeting – Spain is a permanent invitee.
- Institutions like World Bank, IMF, FAO,World Trade Organization, World Health organization also take part in the meetings.
- Groups like African Union and ASEAN will also take participation in G20 meetings.
- Agreements of G20 doesn’t have legal backing but because of its economic and political significance it’s decisions can influence the policies of world countries.
- Apart from The Head of the State, The Finance Ministers from these countries also meets. It also conducts many meetings like Y20(Youth affairs), W20(women), U20(urban administration), T20(think tank), C20(Civil Society) and L- 20(Trade Unions and Labourorganizations), B20(Business), S – 20(Science) and Startup 20 (to be launched by India).
- TROIKA GROUP – group consisting of previous present and future presidents of G – 20 groups.
- It is important wing of G20 to have a continuity in policies and decisions taken by previous chair and to pass on responsibilities to the next chair.
- Presently Indonesia, India, Brazilforms the Troika group, Thus the Troika consist solely of developing countries and global south. This will provide it with the unique opportunity to look at developments from the perspective of the developing world.
PROCEDURE OF DISCUSSION
- The G20 consists of two parallel tracks
- Financial track
- Finance Ministers and Central Bank Governors discuss about the financial and economic aspects of G20 countries.
- Sherpa track
- Every member countries appoint one Sherpa (representative of the government) to the G20. They are directly appointed by the head of the state.
- They discuss both financial and political matters.
- Engagement groups
- Also called work stream which discuss about various issues
- Implement sustainable development goals and digitize public infrastructure.
The contexts in which India take over the Presidency are:-
- Global Pandemic
- World is recovering from the pandemic still vaccines are not fully accessible by many countries.
- Pandemic associated inflation, unemployment, inequalities etc.
- Economic recovery
- Taper Tantrum has affected developing countries by lowering investments.
- Rate of inflation is high in majority of the countries.
- Russia – Ukraine war
- Disruption in global supply chains – in crude oil, fertilizers, food grains etc.
- Climate change
- Productivity in Primary sector decreasing
- Internal migration within the country
- Tendency of De – globalization
- Polarization of countries into east and west, north and south
India can thus use this Presidency in the following ways
- India can fix the broader agendafor the global welfare by including some issues.
- Global skill mapping – It enables you to assess each employee’s skill set and identify any potential areas to improve their skills.
- De – politicization of global supply chains making supply chains ineffective to issues like wars.
- Climate change aspect
- Food and energy security
- Green energy – include wind power, solar power, bio-energy (organic matter burned as a fuel) and hydroelectric, including tidal energy.
- Disaster management
- Tax evasions by MNCs by shipping profits to tax haven countries
- Geo – political conflicts
- Denuclearization and de – weaponization.
- Promotion of the new economic ideas through startups and gig – economy.
- Sustainable development goals
- India would offer solutions to implement SDG’s, digital public infrastructure to the world, according to PM G20 presidency must be inclusive, ambitious and action oriented.
- While offering solutions to the global problems India can showcase its success and previous experiences in:
- Sustainable development goals: In achieving SDGs India enhanced its renewable energy share to 40% of total energy mix and aspiring achieving 50% by 2030 and started global collaborations such as International solar alliance. Promotion of clean energy initiatives at domestic level such as Ujjwala scheme, Ethanol blending, promotion of EVs, renewable energy such as Green Hydrogen.
- Digitalize public infrastructure: India utilized its Digital Infrastructure for empowerment of common man through initiatives such as financial inclusion, Digital transactions and online services.
- Vaccine diplomacy: During pandemic India showcased excellence in manufacturing indigenous vaccines, supply of vaccines to the developing and least developed countries through its vaccine diplomacy.
- India can leverage this platform by showcasing its administrative capabilities and ease of doing business practices to attract global investments.
- India’s heritage: Under its presidency India will conduct around 200 meetings across 50 different locations (Having cultural and heritage distinctiveness) this will create an opportunity to strengthen its soft power diplomacy.
- India can also use this to form cooperation between Multi National Institutions like WB, IMF and G20. Thus making the decisions taken at the G20 to get global acceptance.
- India can use this platform to highlight issues faced by India – maritime freedom, terrorism, border encroachment etc.; and also,reform issues in global level including role at IMF, WB, UNSC etc.
- Represent the developing world and the global south and thus become a global leader.
CHALLENGES OF G20
THEME OF INDIA’S G20 PRESIDENCY
- “VasudhaivaKutumbakam” or “One earth, One family, One future”
- “India’s G20 Presidency will work to promote this universal sense of one-ness. Hence our theme – ‘One Earth, One Family, One Future’” – PMNarendra Modi