G20 (Group of 20 countries) Part - I

 

              Recently India has hosted G20 meeting on 9^th and 10^th September 2023 in New Delhi. Many foreign delegates and Head of the state/governments came India and participated in the meeting.

       In this article, we will discuss about G20 comprehensively. This article will be divided in two parts. In first part, we will discuss about G20 and in next part, about G20 meeting in India.

 

             G20 (Group of 20 countries)

      G20 is an intergovernmental forum comprising most of the influential, advanced and emerging countries of the world. Along with it, many multilateral forums and international institutions have representation in it.

 

About G20 grouping –

·       Group is founded in 1999 after Asian financial crisis.

·       Earlier it was forum of finance ministers and central bank governors.

·       In the wake of global economic and financial crisis, of 2007 and 2009, it was upgraded to head of states/governments.

·       It consists two parallel tracks –

§  Finance Track – led by finance ministers and central bank governors.

§  Sherpa Track – led by Sherpa (special representatives of G20). It is basis of leader’s declaration.

·       Presidency rotates annually among the members of each group as 19 countries are divided into 5 groups.

§  Each group does not have more than 4 countries.

§  India is in Group 2 along with Russia, South Africa and Turkey.

·       HQ – No permanent secretariat or headquarter.

·       Troika group - consist 3 members of past, current and next presidency.

   Current troika group comprises Indonesia (2022), India (2023), and Brazil (2024).

      First time in G20, 3 developing countries are being part of troika group.

Representation under G20-

           G20 composed of world’s largest economies and accounts together –

·       85% of Global GDP

·       75% of Global Trade

·       66% of world’s population

·       45% of world’s coastlines

·       21% of EEZs (Economic Exclusive Zone) – is a distance up to 200 nm (nautical mile – 1nm = 1.85 KM) towards sea from country’s coastline.

Members of G20 – It comprises 19 developed and developing countries of world and one organization along with it means total 20.

           Besides of it, it has representation of multilateral forums and international institutions as guest representatives.

Countries under G20 –

·       N. America – Canada, US, Mexico

·       S. America – Brazil, Argentina

·       Europe – UK, France, Germany, Italy, Russia

·       Asia – India, China, Japan, S. Korea, Indonesia, Saudi Arabia, Turkey

·       Africa – South Africa

·       Australia

·       Organization – EU (European Union)

 

·       Spain is permanent guest of G20

·       Guest representatives of WB, IMF, ADB, WEF, IEA etc.

Objectives of G20 –

·       To secure global financial stability and global economic growth and development by involving world’s largest advanced and emerging economies.

·       Focuses on increasing international cooperation, addressing economic imbalances and challenges faced by developing countries.

Challenges of G20 –

·       Not legally binding – the decisions taken in meeting are based on mutual discussions and consensus, adopted in the form of declaration.

         These declarations are not legally binding on the members.

·       Polarization of interest – members like US, Russia, China have their own set of interests.

·       Slowbalization – slowdown of Globalization.

      Due to global crisis of pandemic, Ukraine – Russia war, role of multilateral institutions have diluted and countries are focussing on their self-interest, which results in slowbalization process.

·       Weaponization of supply chain – Countries like China used supply chain requirements of countries as weapon to prove its interest.

                                      As G20 has wide representation of developing countries, so should focus on global challenges faced by developing and underdeveloped world to ensure comprehensive socio-economic development of world.

 

 

 

                                                                         -By Pooja Gupta