G20 – A Forum for Global Economic Cooperation

The Group of Twenty (G20) is a vital international forum that facilitates economic cooperation among major economies. Established in 1999, it began as a meeting for finance ministers and central bank governors. However, the 2008 global economic crisis transformed it into a leaders’ forum. Today, it includes 19 countries and the European Union, representing approximately 85% of global GDP and two-thirds of the world population.

Structure and Membership

The G20 comprises 19 countries including Argentina, Australia, Brazil, Canada, China, France, Germany. Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Türkiye, the United Kingdom, and the United States. The European Union is also a member. The presidency rotates annually among members, ensuring a dynamic leadership structure. The “Troika” system supports continuity by involving the current, immediate past, and incoming presidencies.

India’s Leadership in 2023

India held the G20 presidency in 2023 under the theme Vasudhaiva Kutumbakam, which translates to One Earth, One Family, One Future. This theme brought into light the interconnectedness of global challenges. India hosted over 200 meetings across 60 cities, engaging around 100,000 participants, including 30,000 delegates from 135 countries.

Key Achievements of India’s Presidency

The New Delhi G20 Leaders’ Summit in September 2023 resulted in the New Delhi Leaders’ Declaration. This declaration focused on sustainable growth, digital infrastructure, and global cooperation. Notable achievements included: – Global South Advocacy – India emphasised the importance of emerging economies through initiatives like the Voice of Global South Summit. – African Union Membership – The African Union was inducted as a permanent member, enhancing inclusive governance. – Green Development Pact – The commitment to tripling global renewable energy capacity by 2030 marked an important environmental milestone. – Digital Public Infrastructure – India shared its digital ecosystem as a model for inclusive development. – Global Biofuels Alliance – Launched to promote sustainable biofuel production, this initiative supports renewable energy pathways.

Ongoing Influence and Future Directions

Even after passing the presidency to Brazil on December 1, 2023, India remains influential within the G20 as part of the Troika. India’s strategic input continues to shape discussions on sustainable practices and the interests of developing nations. Under Brazil’s presidency in 2024, the focus includes social inclusion and energy transitions, building on India’s legacy.

Questions for UPSC:

1. Critically analyse the impact of the G20 on global economic governance since its inception.
2. What are the key themes of India’s G20 presidency in 2023? Estimate their significance for the Global South.
3. Point out the major challenges faced by the G20 in addressing global economic disparities.
4. With suitable examples, explain the role of international forums in encouraging multilateralism in global governance.

Answer Hints:

1. Critically analyse the impact of the G20 on global economic governance since its inception.

1. The G20 has evolved from a finance-centric forum to a leaders’ summit, addressing broader global challenges such as climate change and economic stability.
2. It represents 85% of global GDP, facilitating coordinated responses to economic crises and promoting financial stability worldwide.
3. Through initiatives like the Global Biofuels Alliance and Green Development Pact, the G20 has advanced sustainable development and renewable energy goals.
4. The forum has provided a platform for dialogue among developed and developing nations, encouraging inclusivity in global economic governance.
5. However, challenges remain, such as differing national interests and the need for more binding commitments on issues like climate change and trade.

2. What are the key themes of India’s G20 presidency in 2023? Estimate their significance for the Global South.

1. The theme “Vasudhaiva Kutumbakam” emphasized global interconnectedness, urging collective action on shared challenges, which resonates with Global South nations.
2. India’s advocacy for the Global South included the “Voice of Global South Summit,” denoting the perspectives of emerging economies in global discussions.
3. Induction of the African Union as a permanent G20 member signifies inclusivity and recognition of Africa’s role in global governance.
4. Commitments to tripling renewable energy capacity by 2030 align with the developmental goals of many Global South countries, promoting sustainable growth.
5. The focus on digital public infrastructure supports technology transfer and capacity building in developing nations, enhancing their economic resilience.

3. Point out the major challenges faced by the G20 in addressing global economic disparities.

1. Diverse economic interests among member nations often lead to conflicting priorities, making consensus difficult on critical issues.
2. Developing countries frequently express concerns about being marginalized in decision-making processes, hindering equitable representation.
3. The G20 lacks enforcement mechanisms for its commitments, limiting the effectiveness of its resolutions on global economic disparities.
4. Geopolitical tensions, such as trade wars and conflicts, disrupt cooperation and undermine collaborative efforts to tackle economic inequalities.
5. Global challenges like climate change disproportionately affect poorer nations, necessitating more focused support and investment from developed countries.

4. With suitable examples, explain the role of international forums in encouraging multilateralism in global governance.

1. International forums like the G20 facilitate dialogue among nations, exemplified by the consensus reached during the New Delhi Leaders’ Summit on global issues.
2. Forums provide platforms for collective action, such as the Global Biofuels Alliance, promoting sustainable energy practices across member countries.
3. They enable the inclusion of diverse perspectives, as seen with the African Union’s induction, enhancing global governance legitimacy.
4. Multilateralism is encouraged through initiatives like the Green Development Pact, which aligns member countries on environmental goals.
5. International forums also serve as venues for crisis response coordination, demonstrated during the COVID-19 pandemic, where G20 members collaborated on economic recovery strategies.