G20

• Cover page (Title, student information, school and year).

• Acknowledgement.

• Certificate.

• Index

• Introduction of topic.

• Details of the topic.

• Pros and cons

• Major criticisms (If any)

• Own views and perceptions about the topic.

• Conclusion

• Bibliography.

Introduction
The G20 was foreshadowed at the Cologne summit of the G7 in June 1999, and formally established
at the G7 Finance Ministers' meeting on 26 September 1999 with an inaugural meeting on 15–16
December 1999 in Berlin. Canadian finance minister Paul Martin was chosen as the first chairman
and German finance minister Hans Eichel hosted the inaugural meeting.[16]
A 2004 report by Colin I. Bradford and Johannes F. Linn of the Brookings Institution asserted the
group was founded primarily at the initiative of Eichel, the concurrent chair of the G7. [17] However,
Bradford later described then-Finance Minister of Canada (and future Prime Minister of Canada)
Paul Martin as "the crucial architect of the formation of the G-20 at finance minister level", and as the
one who later "proposed that the G-20 countries move to leaders level summits". [18] Canadian
academic and journalistic sources have also identified the G20 as a project initiated by Martin and
his American counterpart then-Treasury Secretary Larry Summers.[19][20][21][22] All acknowledge,
however, that Germany and the United States played a key role in bringing their vision into reality.
Martin and Summers conceived of the G20 in response to the series of massive debt crises that had
spread across emerging markets in the late 1990s, beginning with the Mexican peso crisis and
followed by the 1997 Asian financial crisis, the 1998 Russian financial crisis, and eventually
impacting the United States, most prominently in the form of the collapse of the prominent hedge
fund Long-Term Capital Management in the autumn of 1998.[19][20][21] It illustrated to them that in a
rapidly globalizing world, the G7, G8, and the Bretton Woods system would be unable to provide
financial stability, and they conceived of a new, broader permanent group of major world economies
that would give a voice and new responsibilities in providing it.[19][21]
The G20 membership was decided by Eichel's deputy Caio Koch-Weser and Summers's
deputy Timothy Geithner.
The G20's primary focus has been governance of the global economy. Summit themes have varied
from year to year. The theme of the 2006 G20 ministerial meeting was "Building and Sustaining
Prosperity". The issues discussed included domestic reforms to achieve "sustained growth", global
energy and resource commodity markets, reform of the World Bank and IMF, and the impact of
demographic changes.
In 2007, South Africa hosted the secretariat with Trevor A. Manuel, South African Minister of Finance
as chairperson of the G20.
In 2008, Guido Mantega, Brazil's Minister of Finance, was the G20 chairperson and proposed
dialogue on competition in financial markets, clean energy, economic development and fiscal
elements of growth and development.
On 11 October 2008 after a meeting of G7 finance ministers, US President George W. Bush stated
that the next meeting of the G20 would be important in finding solutions to the burgeoning economic
crisis of 2008.
The Group of Twenty (G20) comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France,
Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa,
Türkiye, United Kingdom, and United States) and European Union. The G20 members represent around
85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.

G20 is the premier forum for international economic cooperation and it plays an important role in
shaping and strengthening global architecture and governance on all major international economic
issues.

The G20 does not have a permanent secretariat or staff. Instead, the G20 Presidency rotates annually
among the members and is selected from a different regional grouping of countries. The 19 member
countries are therefore divided up into five groups comprising a maximum of four countries each. Most
of the groups are formed on a regional basis, that is countries from the same region are usually put in
the same group. Only Group 1 (Australia, Canada, Saudi Arabia and the United States) and Group 2
(India, Russia, South Africa and Türkiye) do not follow this pattern. Group 3 includes Argentina, Brazil,
and Mexico; Group 4 includes France, Germany, Italy, and United Kingdom; and Group 5 includes China,
Indonesia, Japan, and Republic of Korea. The EU, the 20th member, is not a member of any of these
regional groups.

Each year another country from a different group assumes the G20 Presidency. The countries in a group
are each equally entitled to take on the Presidency when it is their group's turn, though. India, from
Group 2, holds the current Presidency of the G20 from 1 December 2022 to 30 November 2023.

The G20 Presidency is responsible for bringing together the G20 agenda in consultation with other
members and in response to developments in the global economy. To ensure continuity, the Presidency
is supported by a “troika” made up of the current, immediate past and next host countries.

During India’s Presidency, the members of the G20 troika are Indonesia, India and Brazil.

 The G20 Presidency steers the G20 agenda for one year and hosts the Summit. The G20
consists of two parallel tracks: the Finance Track and the Sherpa Track. Finance
Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the
Sherpa Track after Finance Track.
 The G20 process from the Sherpa side is coordinated by the Sherpas of member
countries, who are personal emissaries of the Leaders. Finance Track is led by Finance
Ministers and Central Bank Governors of the member countries. Within the two tracks,
there are thematically oriented working groups in which representatives from the relevant
 ministries of the members as well as from invited/guest countries and various
international organisations participate.
The Finance Track is mainly led by the Ministry of Finance. These working groups meet
regularly throughout the term of each Presidency. The Sherpas oversee negotiations over
the course of the year, discussing agenda items for the Summit and coordinating the
substantive work of the G20.
 In addition, there are Engagement Groups which bring together civil societies,
parliamentarians, think tanks, women, youth, labour, businesses and researchers of the
G20 countries.
 The Group does not have a permanent secretariat. The Presidency is supported by the
Troika – previous, current and incoming Presidency. During India’s Presidency, the
troika will comprise Indonesia, India and Brazil, respectively.

Details

Sherpa Track

It is headed by Sherpa who is the representative of the Leader.

Focus areas: Socio-economic issues such as agriculture, anti-corruption, climate, digital economy,
education, employment, energy, environment, health, tourism, trade and investment. The Working
Groups under this track include:

I. Agriculture Working Group

II. Anti-corruption Working Group
III. Culture Working Group
IV. Development Working Group
V. Digital Economy Working Group 4
VI. Disaster Risk Reduction Working Group
VII. Education Working Group
VIII. Employment Working Group
IX. Energy Transitions Working Group
X. Environment and Climate Sustainability Working Group
XI. Health Working Group
XII. Tourism Working Group
XIII. Trade and Investment Working Group.

Finance Track

It is headed by the Finance Ministers and Central Bank Governors, who generally meet four
times a year, with two meetings being held on the side-lines of WB/IMF meetings.
Focus areas: Fiscal and monetary policy issues such as the global economy, infrastructure,
financial regulation, financial inclusion, international financial architecture, and international
taxation. The Working Groups and Workstreams under this track include:
I. Framework Working Group
II. II. International Financial Architecture Working Group
III. III. Infrastructure Working Group
IV. IV. Sustainable Finance Working Group
V. V. Global Partnership for Financial Inclusion
VI. VI. Joint Finance and Health Task Force
VII. VII. International taxation Issues
VIII. VIII. Financial Sector Issues.

Initiatives

• Research and Innovation Initiative Gathering

Research and Innovation Initiative Gathering (RIIG), besides the Sherpa Track Working
Groups, aims to enhance, intensify, and strengthen research and innovation collaboration
among the G20 member countries. RIIG is furthering the work of the Academic Forum held
during the Italian Presidency in 2021, by bringing together science, technology and
innovation experts of the G20 member countries.

• G20 EMPOWER

The G20 Alliance for the Empowerment and Progression of Women’s Economic
Representation (G20 EMPOWER) was launched during the G20 Osaka Summit in 2019. It
aims to accelerate women’s leadership and empowerment in the private sector by
leveraging its unique alliance among business leaders and governments across the G20
countries.

• SPACE ECONOMY LEADERS MEETING

Under India’s G20 Presidency, Indian Space Research organization/ Department of Space
(ISRO/DOS) is organizing the 4th edition of the Space Economy Leaders Meeting (SELM) to
continue the deliberations on the significance of space in shaping the global economy. The
previous editions of SELM were organized by the Saudi Space Commission (2020), Italian
Space Agency (2021) and National Research & Innovation Agency, Indonesia (2022).
Considering importance of New Space in shaping the global economy, the theme for this
year’s SELM is “Towards a New Space ERA (Economy, Responsibility, Alliance)”.

• G20 CHIEF SCIENTIFIC ADVISORS ROUNDTABLE (CSAR)

The G20-CSAR is a new initiative launched during India’s ongoing Presidency of the G20.
G20- CSAR will bring together the Chief Scientific advisors of the G20 Heads of
state/Government with the objective of creating an effective institutional
arrangement/platform to discuss global Science and Technology (S&T) policy issues, which
can subsequently evolve into an effective and coherent global science advice mechanism.
Furthermore, G20-CASR aims to come up with solutions to some of the issues faced by the
global S&T ecosystem. The priority areas of CSAR during India’s G20 Presidency include
“One Health” and facilitating shared scientific infrastructure for global good, and
collaboration in emerging and futuristic technologies & evolving standards. The first meeting
of G20 CSAR was at Ramnagar, located in the Kumaon region of the state of Uttarakhand
from 28-30th March 2023.
Engagement Groups

As part of the G20 members' commitment to consult relevant stakeholder communities,

dialogue is facilitated through the engagement groups, comprising nongovernment
participants from each G20 member. These groups often draft recommendations to the G20
Leaders that contribute to the policy-making process. The engagement groups are as
follows:

I. Business20
II. Civil20
III. Labour20
IV. Parliament20
V. Science20
VI. SAI20
VII. Startup20
VIII. Think20
IX. Urban20
X. Women20
XI. Youth20
XII. Agenda[edit]
XIII. Financial focus[edit]
XIV. The initial G20 agenda, as conceived by US, Canadian and German
policymakers, was very much focused on the sustainability of sovereign
debt and global financial stability, in an inclusive format that would bring in the
largest developing economies as equal partners. During a summit in November
2008, the leaders of the group pledged to contribute trillions to international
financial organizations, including the World Bank and IMF, mainly for re-
establishing the global financial system.[56][57]
XV. Since inception, the recurring themes covered by G20 summit participants have
related in priority to global economic growth, international trade and financial
market regulation.[58]
XVI. Inclusive growth[edit]
XVII. The G20 countries account for almost 75% of global carbon emissions. [59] After
the adoption of the UN Sustainable Development Goals and the Paris Climate
Agreement in 2015, more "issues of global significance"[58][60] were added to the
G20 agenda: migration, digitisation, employment, healthcare, the economic
empowerment of women and development aid.[61] Despite promises G20 nations
subsidised fossil fuel companies over $3.3 trillion between 2015 and 2021. [59]
XVIII. The G20 countries account for almost 75% of the global carbon emissions and
promised in 2009 to phase out 'inefficient subsidies'. Despite these promises
G20 nations have subsidised fossil fuel companies over $3.3 trillion between
2015 and 2021, with several nations increasing subsidies; Australia (+48.2%),
the US (+36.7%), Indonesia (+26.6%), France (+23.8%), China (+4.1%), Brazil
(+3.0%), Mexico (+2.6%).[59] China alone generates over half of the coal-
generated electricity in the world. [62]
XIX. Interrelated themes[edit]
XX. Wolfgang Schäuble, German Federal Minister of Finance, has insisted on the
interconnected nature of the issues facing G20 nations, be they purely financial
or developmental, and the need to reach effective, cross-cutting policy
 measures: "Globalization has lifted hundreds of millions out of poverty, but there
is also a growing rise in frustration in some quarters […] development, [national]
security and migration are all interlinked"[60]
XXI. In addition to these 20 members, the chief executive officers of several other
international forums and institutions participate in meetings of the G20.[5] These
include the managing director and Chairman of the International Monetary Fund,
the President of the World Bank, the International Monetary and Financial
Committee and the Chairman of the Development Assistance Committee.
XXII. The G20's membership does not reflect exactly the 20 largest economies of the
world in any given year; as the organization states: [1]
XXIII. In a forum such as the G20, it is particularly important for the number of
countries involved to be restricted and fixed to ensure the effectiveness and
continuity of its activity. There are no formal criteria for G20 membership and
the composition of the group has remained unchanged since it was established.
Because of the objectives of the G20, it was considered important that countries
and regions of systemic significance for the international financial system be
included. Aspects such as geographical balance and population representation
also played a major part.
XXIV. Role of Asian countries[edit]
XXV. A 2011 report released by the Asian Development Bank (ADB) predicted that
large Asian economies such as China and India would play a more important
role in global economic governance in the future. The report claimed that the
rise of emerging market economies heralded a new world order, in which the
G20 would become the global economic steering committee. [53] The ADB
furthermore noted that Asian countries had led the global recovery following
the late-2000s recession. It predicted that the region would have a greater
presence on the global stage, shaping the G20's agenda for balanced and
sustainable growth through strengthening intraregional trade and stimulating
domestic demand.

SECTORS

Renewable Health
Digital India Life

SDGs Multilateral Reforms

Trade & Investment Agriculture

Startups Culture

Education Employment & Skilling

Financial Inclusion Tourism

Women-led Development Anti-Corruption

Own views

Agriculture and Food Security

G20 Leaders committed to address the challenge of improving global food security, nutrition and to
raise productivity and the sustainability of food systems. The OECD has been contributing to this
agenda, in particular on food price volatility, sustainable agriculture productivity, ICT and innovation
in agriculture and water efficiency. 
» More

Digitalisation and Innovation

The ongoing digital transformation is profoundly reshaping economies and societies and is growing
in importance in the wake of the COVID-19 pandemic. Since being placed on the G20 agenda in
2016, the OECD has been supporting the G20 in designing policies to seize the opportunities offered
by digital technologies and to unleash innovation.
» More

Anti-corruption
G20 Leaders recognised the significant negative impact of corruption on economic growth, trade and
development. The OECD has actively contributed to the G20 in key areas including foreign bribery,
public sector integrity  measurement of corruption and international cooperation.
» More

Sustainability - Climate Sustainability and Energy

The OECD supports the G20 efforts to boost green and climate finance, to address inefficient fossil
fuel subsidies and promote energy efficiency and a transition to a low-carbon economy. 
» More

Employment, Gender, Education and Social Policies

The OECD has provided extensive support to the G20 to reduce the gender labour participation gap,
increase youth employment and women's leadership, improve job quality, boost the development
and use of skills, and promote labour and social policies to manage megatrends such as migration
and the technological revolution.
» More

Financial Markets and International Financial Architecture

In support of the G20’s goal to stabilise and strengthen the global financial system, the OECD
contributes its expertise in areas such as capital flows, corporate governance, financial inclusion –
including SME financing, financial  education and consumer protection.
» More

Global Health
Through its active contributions in the G20 Health Working Group, the OECD has supported the
G20’s priority on global health, in particular to address Anti-Microbial Resistance (AMR) and
strengthen health systems. 
» More

Infrastructure Investment
Infrastructure investment contributes to higher productivity and growth, facilitates trade, connectivity,
and improves economic inclusion. The OECD supports the G20 agenda to develop infrastructure as
an asset class in particular on data gaps and on the diversification of financial instruments for
infrastructure.
» More

2030 Agenda and Development

The OECD contributes extensively to the definition of the G20 development concepts, based on
growth and resilience, as well as knowledge sharing and policy dialogues to benefit low-income
countries through its active engagement in the G20 Development Working Group (DWG). OECD’s
contributions span from infrastructure, human resource development, financial inclusion, food
security to domestic resource mobilisation.
» More

International Taxation
Since the London Summit in April 2009, the OECD has been at the forefront of fighting against tax
evasion, ending bank secrecy and tax havens, and addressing tax avoidance by multinational
corporations. OECD contributions to the G20 on tax have helped to reform, reshape and modernise
the international tax architecture. The OECD Secretary-General presents reports to G20 Finance
Ministers and Leaders to update them on the progress of international tax co-operation.
» More
Strong, Sustainable, Balanced and Inclusive Growth
The OECD provides policy-oriented analysis to identify and promote structural reforms in support of
the G20’s goal of strong, sustainable, balanced and inclusive growth.
» More

Trade and Investment

The OECD has supported the G20’s commitment to promote open market, and fight protectionism,
including by improving the understanding and inclusivity of Global Value Chains and the link
between trade and investment. 
» More

Trade and Investment

In 2016, the Trade and Investment Working Group (TIWG) was established under the Chinese G20
Presidency and since then has been carried on by all successive G20 Presidencies. The OECD
supports the G20’s work on trade and investment through its active participation in the Trade and
Investment Working Group (TIWG). Some of the areas where the OECD has contributed to the
G20’s trade and investment discussion include trade and investment policy responses to the COVID-
19 crisis, global value chains, digital trade and cross-border data flows, trade in services, investment
facilitation, and FDI screening.

In 2021, the Italian G20 Presidency has put at the core of its trade agenda the WTO reform; trade in
services and investment facilitation; as well as trade and health, with level playing field and
sustainability issues playing a central role, together with boosting MSMEs international
competitiveness. The OECD supported this agenda with analytical inputs on the resilience of GVCs,
trade in services – including digital trade, level playing field issues and transparency of government
support, and investment facilitation. The OECD also provided insights for the Policy Toolkit on
‘Promoting Born Green via Digital MSMEs and Entrepreneurship in Global Supply Chains’.

Resilient Supply Chains

COVID-19 has placed significant strains on supply chains, with serious implications for international
trade and investment. This experience demonstrates that international supply chains will continue to
be subjected to unexpected disruptions.  Citizens around the world will continue to demand that
governments take steps to ensure security of supply, and policy makers will need policy solutions
that address these expectations without resorting to beggar-thy-neighbour measures. 
The OECD informed its G20 contributions in 2021 on the basis of the OECD toolkit for Resilient
Supply Chains built on 4 key dimensions:  1) Anticipating risks to develop the necessary strategies
and governance arrangements to manage them and analyze their potential disruptions; 2)
Minimising exposure to shocks through resilient critical infrastructure, enablers of digital trade, sound
procurement management and regulatory flexibility; 3) Building trust through firm-level risk
management strategies, public-private action plans, the stress testing of supply chains, and strategic
governance at the national level; 4) Keeping markets open by promoting predictable and transparent
trade and investment policy regimes, and further promoting trade facilitation and international
regulatory cooperation.
Recent OECD Contributions to the G20
 28th OECD-WTO-UNCTAD report on G20 trade and investment measures  (November 2022)
 G20 Trade Ministers declaration 2021
 OECD-WTO-UNCTAD report on G20 Trade and Investment Measures (2021)
 Extraordinary G20 Trade and Investment Ministerial Virtual Meeting  (March 2020)
 Revised OECD Code of Liberalisation of Capital Movements  (May 2019)
 Effective Approaches for implementing the High Level Principles on SME Financing  (July
2018)
 The OECD Code of Liberalisation of Capital Movements: Update on Developments  (July
2018)

 ITC-OECD-UNCTAD-WBG-WTO Background Note on Trade and Investment Aspects of the

New Industrial Revolution (April 2018)

Monitoring of Trade and Investment Measures

Mandated by Leaders in 2009, the OECD – with WTO and UNCTAD – has been monitoring and
regularly reporting on G20 countries’ trade and investment policies. The OECD monitors G20
countries’ commitment to keep markets open and refrain from “raising new barriers to investment or
to trade in goods or services, imposing new export restrictions, or implementing WTO inconsistent
measures to stimulate exports.”

Making Trade Work for All

Faced with an increasing backlash against globalization and public skepticism about the benefits of
trade, the G20 addressed with the support of the OECD and other international organisations the full
range of policy responses that can make the economic and trade system work better for more
people, and assessed the impact of trade-related measures that open or restrict market access. In
its report Making Trade Work for All, the OECD addressed the trade backlash and how to make
trade improve lives and create new opportunities for all.

Trade and Investment Nexus

During its G20 Presidency, China put the nexus between trade and investment on the agenda. In
2016, Trade Ministers endorsed the G20 Guiding Principles for Global Investment Policymaking.
Building on its existing body of work (i.e., the G20/OECD Principles of Corporate Governance and
the OECD Guidelines for Multinational Enterprises), the OECD contributed substantively to the
TIWG’s broader discussion on policy coherence in the trade-investment nexus as well as on
investment facilitation and related policy issues.

Global Forum on Steel Excess Capacity

Low steel prices, weak profitability and trade disturbances are some of the effects of excess capacity
that are being felt by steel manufacturers around the world.  The OECD acts as a facilitator of the
Global Forum on Steel Excess Capacity, set up by G20 Leaders in 2016 to commonly address this
issue
Infrastructure Investment
Infrastructure plays a crucial role in the global economy. The availability of transport, communication,
electricity, safe water and sanitation, health infrastructure and other basic facilities has a tremendous
impact on improving the quality of life and well-being. Infrastructure facilities and services are
instrumental to efficient production, transport and trade that all spur economic growth, which in turn
helps in reducing poverty. Recognising the essential role that long-term financing for investment
plays in supporting strong, sustainable, balanced and inclusive growth, G20 Finance and Central
Bank Deputies established a Study Group on Financing for Investment in 2013, which was
transformed into the Infrastructure Investment Working Group (IIWG) in 2014 and then into
the Infrastructure Working Group (IWG) at the end of 2017.

The OECD, drawing on its longstanding expertise and extensive work on long-term investment, has
been a key contributor to the G20 work on financing for infrastructure and an active member of the
IIWG and IWG. In 2013, upon G20 Leaders’ request, the OECD helped develop the G20/OECD
High-Level Principles for Long-term Investment Financing by Institutional Investors. Following a call
from Leaders, the OECD has continued its work on institutional investors through the G20/OECD
Task Force on Institutional Investors and Long-Term Financing. Recent contributions include,
amongst other, the OECD Reference Note on Environmental and Social Considerations in Quality
Infrastructure in 2019 or the G20/OECD Report on the Collaboration with Institutional Investors and
Asset Managers on Infrastructure in 2020 (for a fuller list of selected contributions see below). With
the Italian Presidency 2021 the OECD is continuing the work on long-term investment financing and
the collaboration with institutional investors.

Infrastructure as an asset class

Under the Argentinian Presidency in 2018, the G20 has developed “The G20 Roadmap to
Infrastructure as an Asset Class”, endorsed by Finance Ministers and Central Banks Governors in
March 2018. The Roadmap aims to address common barriers to the emergence of infrastructure as
an asset class, including the heterogeneous nature of infrastructure assets, the lack of a critical
mass of bankable projects and insufficient data to track asset performance. The Roadmap is a major
step to mobilize more private infrastructure investment, and particularly in infrastructure that support
sustainable growth. The OECD has been a key supporter of the G20 agenda to develop
infrastructure as an asset class in particular on the diversification of financial instruments for
infrastructure and on addressing data gaps.
In order to support these efforts, the OECD, along with the World Bank, prepared a Stocktake of
Tools and Instruments Related to Infrastructure as an Asset Class. The stocktake identifies
numerous gaps for further consideration by the G20 and other fora; including implementation of
existing instruments, standardisation, and also the need for new guidance for instance on the
treatment of new technologies such as blockchain. The OECD also acts as the Secretariat and
contributes to the Infrastructure Data Initiative, which brings together MDBs and other stakeholders
including private investors, with the aim to address data gaps and information asymmetries that
hinder infrastructure investment.
Under the Japanese G20 Presidency in 2019, the G20 enhanced its attention to quality
considerations of infrastructure development and investments. It notably adopted the G20 Principles
for Promoting Quality Infrastructure Investment, covering issues such as the economic efficiency in
view of infrastructure life-cycle cost, the integration of environmental and social considerations in
infrastructure investments, infrastructure governance and resilience against risks including natural
disasters. The OECD supported these efforts, notably with the OECD Reference Note on
Environmental and Social Considerations in Quality Infrastructure, the OECD/IMF Reference Note
on the Governance of Quality Infrastructure Investment and the OECD Compendium of Policy Good
Practices for Quality Infrastructure Investment. In addition, the OECD, in collaboration with the
Global Infrastructure Hub and the World Bank, is supporting the Quality Infrastructure Investment
Database. This joint initiative brings together different reports and analysis related to quality
infrastructure investment.
During the Presidency of Saudi Arabia in 2020, adopting the G20 Riyadh InfraTech Agenda, the G20
turned its attention to the role of technology in helping countries make well-informed infrastructure-
related decisions and achieve more efficient financial outlays, by mobilizing private sector
investment, by enhancing service delivery and by achieving environmental, social and economic
benefits. The G20 also further advanced the quality infrastructure and infrastructure as an asset
class agendas. The OECD produced the G20/OECD Report on the Collaboration with Institutional
Investors and Asset Managers on Infrastructure, which was welcomed by G20 Leaders and reflects
investors’ views on issues and challenges affecting private investment in infrastructure. In addition
the report presents a set of proposals to improve the investment environment for infrastructure.
Given the impact of the COVID-19 pandemic, the G20 further discussed the role of infrastructure
investments as part of recovery efforts and the importance of the crisis-resilience of infrastructure
systems. On the latter, the OECD supported the G20 with the OECD's Progress Note on COVID-19
and a New Resilient Infrastructure Landscape – October 2020.
The OECD will continue to work on these topics in 2021 with the Italian G20 Presidency.

Most Recent OECD Contributions to the G20

 Unlocking infrastructure investment  (December 2021)

 Building Resilience: New Strategies for Strengthening Infrastructure Resilience and

Maintenance

 G20/OECD Report on the Collaboration with Institutional Investors and Asset Managers on
Infrastructure

 OECD Reference Note on Environmental and Social Considerations in Quality Infrastructure  

 OECD/IMF Reference Note on the Governance of Quality Infrastructure Investment   

 OECD Compendium of Policy Good Practices for Quality Infrastructure Investment  

 G20/OECD/WBG Stocktake of Tools and Instruments Related to Infrastructure as an Asset

Class Progress Report (July 2018)
 

 G20/OECD Effective Approaches for Implementing the G20/OECD High-Level Principles on

SME Financing (July 2018)

 Supporting the Infrastructure Data Initiative – Summary of the Workshop on Infrastructure as

an Asset Class and Data Collection for Long-term Investment  (November 2017)

 G20/OECD Guidance Note on Diversification of Financial Instruments for Infrastructure and

SMEs (2016)

 Effective Approaches to Support Implementation of the G20/OECD High-Level Principles on

Long Term Financing by Institutional Investors (2015)

 Taxonomy of instruments and incentives for infrastructure financing  (2015) 

 G20/OECD High-Level Principles for Long-term Investment Financing by Institutional

Investors (2013)

International Taxation
Since the London Summit in April 2009, the OECD has been at the forefront of fighting against tax
evasion, ending bank secrecy and tax havens, and addressing tax avoidance by multinational
corporations. OECD contributions to the G20 on tax have helped to reform, reshape and modernise
the international tax architecture.
The OECD Secretary-General presents reports to G20 Finance Ministers and Leaders to update
them on the progress of international tax co-operation.

Base erosion and profit shifting (BEPS)

Costing governments an estimated USD 100-240 billion in lost corporate income tax revenues per
year, tackling BEPS effectively is a global issue, requiring a coherent global approach.
For the first time ever in international tax matters, OECD and G20 countries worked together to
develop the OECD/G20 BEPS Package to equip governments with domestic and international
instruments needed to tackle tax avoidance.
At the request of G20 Leaders in 2015, the OECD established the OECD/G20 Inclusive Framework
on BEPS (Inclusive Framework), now covering 141 members representing a wide diversity of
economic profiles, including a significant number of developing countries. All of the members
participate on an equal footing. They are committed to implementing the BEPS measures, to
undertake peer reviews concerning the BEPS minimum standards, and to finalise the remaining
standard-setting work, in particular in relation to transfer pricing.

Addressing the tax challenges arising from the digitalisation of

the economy
Addressing the tax challenges raised by digitalisation is currently the top priority for the Inclusive
Framework, and has been a key area of focus of the BEPS Project since its inception. This work has
delivered several important outputs covering both direct and indirect tax issues.
As of November 2021, 137 member jurisdictions of the Inclusive Framework, representing more than
90% of global GDP, have joined a landmark agreement to address the tax challenges arising from
the digitalisation of the economy. The Two-Pillar Solution and Detailed Implementation
Plan, endorsed by G20 Finance Ministers and Central Bank Governors at their meeting in
October, provide an ambitious timeline for the effective implementation of the new rules by 2023.

Recent OECD contributions to the G20

 OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank
Governors (India, February 2023) - Version française
 OECD Secretary-General Report to G20 Leaders on the Establishment of the Inclusive
Forum on Carbon Mitigation Approaches (Indonesia, November 2022) - Version française
 OECD Secretary-General Tax Report to G20 Leaders  (Indonesia, November 2022) - Version
française
 OECD Secretary-General Report to G20 Finance Ministers and Central Bank Governors on
the Establishment of the Inclusive Forum on Carbon Mitigation Approaches (Indonesia,
October 2022) - Version française
 OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank
Governors (Indonesia, October 2022) - Version française
 OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank
Governors (Indonesia, July 2022) - Version française
 OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank
Governors (Indonesia, February 2022) - Version française
 Tax Policy and Gender Equality: A Stocktake of Country Approaches  (Indonesia, February
2022)
 View all

Tackling COVID-19
Today, most G20 economies are in the recovery phase of the COVID-19 crisis, during which they
will need to create the conditions for robust, resilient and inclusive economic growth, which will be
essential in supporting government finances in the future. Tax policy is a key component of
governments’ strategies to respond to the pandemic and build a sustainable and inclusive recovery.
Under the Italian G20 Presidency, the OECD has delivered key outputs related to COVID-19,
highlighting some of the implications for public finances, and of tax systems in particular, and
presented a range of broader structural trends and challenges that countries face, such as the
impact of ageing populations, digitalisation, and the need for decarbonisation, among other
challenges.

Tax and the environment

A progressive transition to net zero greenhouse gas emissions by around the middle of the century
is essential for containing the risks of dangerous climate change. Limiting global warming to 1.5°-
2°C will require climate policy packages that drive transformative changes in production and
consumption patterns. While some policies apply an explicit price to carbon emissions, others have
the effect of creating an implicit price, with policy mixes depending on countries' specific economic
circumstances. With G20 countries accounting for around 80% of greenhouse gas emissions, the
G20 is well placed to take forward a structured and systematic dialogue on the role of implicit and
explicit carbon pricing that can facilitate greater co-operation among G20 members.
The OECD's work in this area under the Italian G20 Presidency, has focused on carbon pricing,
taking stock of current pricing patterns, identifying reform needs to meet mitigation pledges, impacts,
and opportunities, and comprehensive approaches to addressing political economy concerns.
According to latest OECD data (October 2021), average carbon prices have risen in G20
economies. But despite significant progress, carbon prices are still too low to meet long-term climate
ambitions.

Global Forum on Transparency and Exchange of Information for

Tax Purposes
Established in the early 2000s, the Global Forum on Transparency and Exchange of information for
Tax Purposes has served its members (originally only consisting of OECD countries) in addressing
the risks to tax compliance posed by non-cooperative jurisdictions. In 2009, in response to the G20’s
call to strengthen implementation of the tax transparency standards, the Global Forum was
restructured and today over 160 members are collaborating on equal footing. Through its in-depth
peer-review process, the Global Forum monitors countries’ progress in implementing the EOIR
Standard, delivering recommendations and assigning an overall rating against the standard.
Responding to a G20 call to further enhance transparency, the OECD also developed the global
Common Reporting Standard (CRS) for the automatic exchange of financial account information
(AEOI). Endorsed by G20 Leaders in 2014, the AEOI Standard is a game-changer in terms of
deterring and detecting tax evasion, allowing governments to trace assets shifted offshore that were
previously unidentified. About 100 jurisdictions have already started to exchange financial account
information automatically and over 115 jurisdictions are expected to exchange such information by
2023. The Global Forum has delivered the first assessment of the legal frameworks put in place to
implement AEOI and commenced the peer review of their effectiveness in practice.

Tax certainty
In the context of international taxation, concerns over uncertainty in tax matters and its impact on
cross-border trade and investment heightened. At the request of G20 Leaders in Hangzhou, the
OECD and the IMF explored the nature of tax uncertainty, its main sources and effects on business
decisions and outlines a set of concrete and practical approaches to help policymakers and tax
administrations shape a more certain tax environment.
A first report was delivered to G20 Finance Ministers in March 2017 and follow-up reports were
presented in July 2018 and June 2019. The Secretary-General also reports on tax certainty through
his recurring tax reports to G20 Finance Ministers and Central Bank Governors (see e.g. February
and April 2021).

Strong, Sustainable, Balanced and Inclusive Growth

After the financial crisis, G20 Leaders pledged to work together to ensure a lasting recovery and
strong and sustainable growth over the medium term by implementing the G20 Mutual Assessment
Process (MAP). To meet this goal, they launched the Framework for achieving strong, sustainable,
and balanced growth, which is being implemented in the G20 Framework Working Group (FWG).
The OECD actively participates in the FWG.
As a part of its wider contribution to the Framework, the OECD has launched its Going for Growth
report, often at the margins of the G20 Finance Minister and Central Bank Governors meetings,
which identifies and assesses G20 countries’ progress to advance structural reforms that could
boost sustainable and inclusive growth.
With the pandemic outbreak, the OECD contributed under both the Saudi and Italian Presidencies in
2020 and 2021 to the Action Plan adopted by Finance Ministers to overcome the economic crisis
and its social consequences, leveraging its analysis on structural policies for the recovery and the
latest edition of the Going for Growth. The OECD has also provided the latest insights on the global
economic outlook and policy responses to the crisis in G20 economies.
The Italian G20 Presidency has also put forward several initiatives to consolidate the G20’s crisis
response and the transition towards a more sustainable, inclusive, balanced and resilient global
recovery. Under Italy’s leadership, the G20 has updated and monitored the implementation of the
G20 Finance Ministers’ and Central Bank Governors’ (FMCBG) Action Plan and reinforced its
recovery and environmental dimensions. The Italian Presidency has also advanced discussions in
the FWG on the G20’s monitoring of risks to the global economy, with a particular focus on
macroeconomic policy settings through the recovery and climate change, which have been
supported by OECD contributions on the economic impacts of environmental policies.

OECD’s contribution to the Framework

The OECD contributed to the design of the G20 National Growth Strategies under the Australian
Presidency (2014), which aimed at lifting the global GDP by 2% above the baseline by 2018 (2-in-5
ambition). Since then, the OECD, together with IMF, has been monitoring, assessing and quantifying
the implementation of the National Growth Strategies to reach the 2-in-5 ambition.
Under the Chinese Presidency (2016), G20 leaders agreed on an Enhanced Structural Reform
Agenda, which identifies nine priority areas of structural reform and a set of guiding principles. The
OECD supported this agenda by delivering to Ministers during the German Presidency, a report on
the Enhanced Structural Reform Agenda which assesses progress in structural reforms under the
nine priority areas.
Under the German Presidency, in 2017, the G20 countries adopted G20 principles to enhance the
resilience of the G20 economies. The OECD provided support for the Principles by producing a
Policy Paper on Economic Resilience and Structural Policies.
To support the Argentine Presidency’s priority on the future of work in 2018, the OECD delivered an
overview paper on the macroeconomic implications and policy needs of new breakthrough
technological advances for the future of work. The OECD also prepared papers on tax policies and
competitive conditions that informed the G20 Menu of Policy Options for the Future of Work.
In 2019, the OECD contributed to the Japanese Presidency work on fiscal challenges and inclusive
growth in ageing societies.
Under Saudi Arabia’s Presidency in 2020, as part of discussions around the macroeconomic policy
response to the pandemic and the G20 FMCBG Action Plan, the OECD put forward the report New
Horizons: Structural Policies for a Strong Recovery and a Sustainable, Inclusive and Resilient
Future. The OECD also provided analytical support to Saudi Arabia’s G20 priorities through its paper
on Enhancing Equal Access to Opportunities for All in G20 Countries.
In 2021, the OECD has delivered to the Italian G20 Presidency detailed analysis regarding
digitalisation and productivity, which has served to inform Italy’s G20 Menu of Policy Options - Digital
Transformation and Productivity Recovery endorsed by FMCBGs in July 2021. This contribution
focused on 3 key issues: i) addressing the twin issue of productivity slowdown and rising gaps in
productivity and wages; ii) harnessing the opportunities and addressing the challenges of the
development of digital platforms in G20 countries, highlighting policy options to boost their diffusion
to reap their productivity and resilience benefits while addressing their disruptive effects, including
those related to job quality and social protection; and iii) investments in intangible assets
complementary to digital diffusion, such as skills, information, innovative property, logistics and
organisational capital and their potential to reverse the global productivity slowdown and increase
resilience to shocks such as the COVID-19 crisis.

Recent OECD Contributions to the G20

 OECD-ILO paper on MSME Productivity, Inclusive Growth and Decent Work Creation (May
2022)

 Going for Growth 2021

 Spurring growth and closing gaps through digitalisation in a post-COVID world: Policies to
LIFT all boats (July 2021)

 Harnessing the productivity benefits of online platforms: Background paper (July 2021)

 Bridging the gap in the financing of intangibles to support productivity: Background paper
(July 2021)

 New horizons: Structural policies for a strong recovery and a sustainable, inclusive and
resilient future (November 2020)

 Enhancing equal access to opportunities for all in G20 countries (June 2020)

 Tax policies for inclusive growth in a changing world (July 2018)

  Maintaining competitive conditions in the era of digitalisation (July 2018)

 Achieving Inclusive Growth in the face of Digital Transformation and the Future of Work
(March 2018)

Employment, Education and Social Policies

In light of the intensity of labour market challenges in G20 countries, the G20’s employment agenda
was elevated to the working group level in 2014 with the creation of the Employment Working Group
(EWG). The OECD has made significant contributions over the years to the work on employment
and social policies notably in the areas of youth unemployment, labour activation policies, social
protection, new forms of work, and reducing the employment gender gaps, most often in partnership
with the ILO. In 2020, under the Presidency of Saudi Arabia, the OECD produced a report with the
ILO, at the request of G20 Leaders, on the Impact of COVID-19 on Global Labour Markets. The two
organizations also provided an update on progress towards the Antalya Youth Target, to reduce the
share of young people who are at most risk of being permanently left behind in the labour market by
15 percent by 2025. The OECD and ILO supported under Saudi Arabia’s Presidency the G20 Youth
Roadmap 2025, which aims to support countries to achieve the G20 Antalya Youth Goal. The
OECD, together with the ILO, was called upon to continue monitoring these matters - both the
impacts of COVID-19 on employment and the youth target, under the Italian Presidency.

Gender Equality
In 2014, the OECD analysis on the economic case for promoting gender equality (Achieving stronger
growth by promoting a more gender-balanced economy) supported the commitment by G20 Leaders
agreed to reduce the gender gap in labour force participation rates by 25% by 2025 (Brisbane
target).Since then, the OECD, together with the ILO, has been monitoring G20 countries’ progress in
achieving the Gender Target, which is captured in a report Women at Work in G20 Countries first
presented to Ministers under the German Presidency in 2017. The report also focused on improving
job quality of women as key to reducing gender gaps in both labour force participation and pay. The
OECD supported the Argentinian Presidency’s approach to mainstream gender equality across the
various G20 policy work streams. In 2018, in the Digital Economy Task Force, the OECD provided
evidence-based analysis on high impact policies to help women best address the challenges and
opportunities brought by digitalisation. The G20 Presidency of Saudi Arabia also mainstreamed
gender across working groups, and in 2020 the OECD/ILO delivered the annual Women at Work
report on progress towards the Brisbane target. During the Italian G20 Presidency, the OECD is
continuing to provide input with ILO to this workstream, as requested by Leaders in Riyadh and is
contributing to the Roadmap towards the Brisbane target which will examine gender equality in
areas beyond labour force participation, including policy options to improve job quality and
opportunities.
The OECD is also supporting the G20 EMPOWER (Private Sector Alliance for the Empowerment
and Progression of Women’s Economic Representation) Alliance.
This initiative, comprised of private sector representatives and supported by G20 governments, was
launched during the Osaka Summit in 2019 under Japanese Presidency to advocate for the
advancement of women in leadership positions in the private sector. EMPOWER met for the first
time during the Saudi Presidency and will be pursued by Italy in 2021. In 2020 the OECD supported
the EMPOWER Alliance with a stocktake on policy practices to promote women in leadership roles
in the private sector.
Hyperlink with Stocktake report: Policy Perspectives on Promoting Women in Leadership Roles in
the Private Sector

Recent OECD Contributions to the G20

 OECD-ILO paper on MSME Productivity, Inclusive Growth and Decent Work Creation  (May
2022)

 Women at Work in G20 countries: Policy action since 2020

 OECD-ILO The impact of the COVID-19 pandemic on jobs and incomes in G20 economies
2020 

 Helping disadvantaged youth: Progress and policy action towards the Antalya G20 Youth
Goal | G20 Saudi Arabia 2020 

 Options for monitoring the Antalya youth target | G20 Saudi Arabia 2020  

 OECD Note on the Governance of Education and Skills Systems  (September 2018)

 OECD Note on Future of Skills (September 2018)

 OECD Note on Effective Financing of Skills System for the G20 Education Working
Group (September 2018)

 OECD-ILO Report on Labour Market Inclusion of People with Disabilities  (September 2018)

 OECD-ILO Report on Promoting Adequate Social Protection and Social Security Coverage
for All Workers, Including those in Non-Standard Forms of Employment (September 2018)

 OECD Note on The emergence of new forms work and their implications  (February 2018)

 G20 Global Displacement and Migration Trends Report 2017  (July 2017)

 Towards a framework for fair and effective integration of migrants into the labour market ,
OECD together with ILO, IMF, WBG (May 2017)

 Women at Work in G20 Countries, OECD, ILO (May 2017)

 Promoting Sustainable Global Supply Chains: International Standards Due Diligence and
Grievance Mechanisms, OECD with contributions from ILO, IMF and WBG (May 2017)

Education & Skills

The OECD contributed to the adoption of the G20 Skills Strategy, based on the OECD Skills
Strategy under the G20’s employment stream. Under Argentina’s Presidency, that set up the
education working group, the OECD has contributed its analysis to the G20 efforts on effective
financing of education and skills systems, future of skills, and governance of education and skills
systems, based on the work of the OECD Centre for Skills and the outcomes of the PISA and PIAAC
exercises. The OECD contributed work on access to early childhood education to the Saudi
Presidency of the G20 in 2020, and is undertaking in 2021 a survey requested by the Saudi
Presidency on the use of digital technologies in early childhood education during the COVID-19
epidemic.The Italian G20 Presidency will host an Education Ministerial in June with a “back-to-back”
formula and a joint segment with the Labour Ministerial.

Migration
International migration was put on the G20 agenda in 2015 in a context of global refugee crisis. The
OECD, together with other international organisations, contributed its analysis Towards a
Framework for Fair and Effective Integration of Migrants into the Labour Market   under the German
Presidency. Ahead of the 2017 Hamburg Summit, the OECD contributed a report on migration G20
Global Displacements and Migration trends report highlighting key findings from the OECD
International Migration Outlook 2017. The OECD was asked by Leaders in Hamburg to report back
annually on migration trends and policy challenges. During the Presidency of Saudi Arabia the
OECD delivered the 2020 Annual International Migration and Forced Displacement Trends and
Policies Report prepared in cooperation with ILO, International Organization for Migration (IOM) and
United Nations High Commissioner for Refugees (UNHCR). 

Sustainable Supply Chains and Modern Slavery

Governance gaps and poor enforcement of labour laws and standards contribute to poor job quality
in global supply chains. Against this backdrop, the German Presidency aimed at strengthening
responsible business conduct to achieve sustainable and inclusive global supply chains, which led
Ministers to reaffirm their commitment to international guidelines including the OECD MNE
Guidelines. In an effort to support the German Presidency, the OECD prepared a report to the G20
Labour and Employment Ministers titled Promoting Sustainable Global Supply Chains: International
Standards Due Diligence and Grievance Mechanisms.Under the Argentinian Presidency, the OECD
continues supporting G20 efforts to implement measures to tackle modern slavery in close
collaboration with the public and private sectors by leveraging its network of National Contact Points
under the Responsible Business Conduct Guidelines and its newly adopted Due Diligence Guidance
for Responsible Business Conduct.

Job Quality, Social Protection and People with Disabilities

The OECD supported the Turkish Presidency’s focus on inclusiveness, including in the areas of
youth employment and job quality. In particular, the OECD contributed to substantiate this ambitious
policy package by contributing to the G20 Framework on Promoting Quality Jobs, in co-operation
with the ILO and supporting the adoption of a youth target. The OECD further supported under the
Chinese Presidency the endorsement of the G20 Entrepreneurship Action Plan and the G20
Initiative to Promote Quality Apprenticeship.
The OECD supported the Argentinian Presidency’s priority on Decent Work, by preparing analysis
on adapting and extending social protection for gig workers. The OECD also advanced work on
indicators to measure the development of the platform economy and provide policy principles to
improve the integration of people with disabilities into the labour market.  For the G20 Presidency of
Saudi Arabia, the OECD and ILO provided support through the contribution of evidence-based
inputs to the development of a Menu of Policy Options to provide adequate social protection for all to
reflect the changing patterns of work. Under the Italian Presidency, the OECD will continue to
support the social protection agenda.
Financial Markets and International Financial Architecture
The G20 attaches great importance to the role of the financial sector in ensuring sustainable
economic development and the stability of financial markets. The OECD supports this ambition by
contributing to the G20 discussion on capital flows, including by promoting further the relevance of
the OECD Code of Liberalisation of Capital Movements for all G20 members in the G20 International
Financial Architecture Working Group. Furthermore, the OECD has supported the G20 emphasis on
promoting small and medium-sized enterprise (SME) development, including access to finance,
participation in GVCs, corporate governance and taxation rules. The G20 adopted the G20/OECD
High Level Principles on SME financing and G20/OECD Principles of Corporate Governance.

In 2020, with the COVID-19 crisis hitting developing countries with particular force, the G20
launched the Debt Service Suspension Initiative (DSSI), extended to 2021. The G20 expressed
readiness to go beyond suspension by affording debt treatment for DSSI-eligible countries (Common
Framework for Debt Treatments beyond the Debt Service Suspension Initiative - DSSI). In support of
the G20’s efforts to advance debt transparency and sustainability, the OECD is moving towards
hosting the data repository of the Institute of International Finance (IIF)’s Voluntary Principles of Debt
Transparency. The OECD is also continuously supporting the G20 in following and analyzing capital
movements and corresponding country measures, observed since the onset of the COVID-19 crisis.

International Financial Architecture

The Code of Liberalisation of Capital Movements  (the Code) was adopted in the OECD in 1961 at a
time when many OECD countries were in the process of economic recovery and when the
international movement of capital faced many barriers.
Today, all 37 OECD countries and an increasing number of G20 members (since 2012, this
instrument is open for adherence by non-OECD countries) adhere to the Code, which has been
revised in 2019. In March 2017, G20 Finance Ministers and Central Bank Governors made a call for
non-adherents to consider joining the Code. Since then three additional G20 members have
requested adherence to the Code and their adherence process has started.
In 2016, adhering countries adopted terms of reference for a review of the Code with a view to
strengthening it and ensuring its continued relevance. The OECD regularly updates the G20 on the
review of the Code.

Recent OECD Contributions to the G20

 G20/OECD Report on Financial Consumer Protection and Financial Inclusion in the Context
of COVID-19 (October 2021)
 G20/OECD-INFE Report on Navigating the Storm: MSMEs’ Financial and Digital
Competencies in COVID-19 times (October 2021)
 G20/OECD-INFE Report on Supporting Financial Resilience and Transformation through
Digital Financial Literacy (October 2021)
 Evolution and Trends in SME Finance Policies since the Global Financial Crisis  (July 2020)
 The OECD's Report on Advancing the Digital Financial Inclusion for Youth  (July 2020)
 COVID-19 and Global Capital Flows, OECD Report to G20 International Financial
Architecture Working Group (June 2020)
Financial Consumer Protection and Financial Education
The OECD plays a leading role in developing guidelines for policy makers on financial consumer
protection and financial education, which are critical in supporting meaningful, safe financial
inclusion that contributes to inclusive growth. The OECD coordinates the G20/OECD Task Force on
Financial Consumer Protection and the OECD International Network on Financial Education
develops policy tools and research on financial literacy. The OECD is an implementing partner of the
Global Partnership for Financial Inclusion (GPFI) and its subgroup on Financial Consumer Protection
and Financial Literacy.

Following endorsement of the G20 High-level Principles on Financial Consumer Protection in 2011,

the G20/OECD Task Force on Financial Consumer Protection is supporting the implementation of
the G20 High-level Principles. In July 2012, the Principles were adopted by the OECD Council as a
Recommendation, thereby expanding the coverage of the principles to include all OECD member
countries.

Financial education is now universally recognised as a core component of the financial

empowerment of individuals and the overall stability of the financial system. In 2016, G20 Leaders
endorsed the High-Level Principles for Digital Financial Inclusion to highlight the need to strengthen
financial and digital literacy as an important component of the international policy agenda. OECD
International Network on Financial Education (INFE) has been supporting the implementation of this
High-Level Principle by preparing reports, especially considering the impact of the increasingly
digitalised economy.

Criticism
Although the G20 has stated that the group's "economic weight and broad membership gives it a
high degree of legitimacy and influence over the management of the global economy and financial
system",[68] its legitimacy has been challenged. A 2011 report for the Danish Institute for International
Studies criticised the G20's exclusivity, particularly highlighting its underrepresentation of African
countries and its practice of inviting observers from non-member states as a mere "concession at the
margins", which does not grant the organisation representational legitimacy. [69] Concerning the
membership issue, US President Barack Obama noted the difficulty of pleasing everyone:
"Everybody wants the smallest possible group that includes them. So, if they're the 21st largest
nation in the world, they want the G21, and think it's highly unfair if they have been cut out." [70] Others
stated in 2011 that the exclusivity is not an insurmountable problem and proposed mechanisms by
which it could become more inclusive.[71]

Norwegian perspective[edit]
In line with Norway's emphasis on inclusive international processes, the United Nations, and the UN
system, in a 2010 interview with Der Spiegel, the current prime minister of Norway Jonas Gahr
Støre called the G20 "one of the greatest setbacks since World War II" [11] as 173 nations who are all
members of the UN are not among the G20. This includes Norway, a major developed economy and
the seventh-largest contributor to UN international development programs, [72] which is not a member
of the EU, and thus is not represented in the G20 even indirectly. [11] Norway, like other such nations,
has little or no voice within the group. Støre argued that the G20 undermines the legitimacy of
international organizations set up in the aftermath of World War II, such as the IMF, World Bank and
United Nations:
The G20 is a self-appointed group. Its composition is determined by the major countries and powers.
It may be more representative than the G7 or the G8, in which only the richest countries are
represented, but it is still arbitrary. We no longer live in the 19th century, a time when the major
powers met and redrew the map of the world. No one needs a new Congress of Vienna.[11]
Norway, under the government of Erna Solberg, attended the 2017 G20 summit in Hamburg,
Germany.[73]

Spanish position on membership[edit]

Spain is the world's thirteenth largest economy by nominal GDP (the fifteenth largest by purchasing
power parity), the fourth in the European Union, the second among Spanish-speaking countries, the
third in Iberoamerica. In addition, since the 1990s several Spanish companies have gained
multinational status, and Spain is an important foreign investor worldwide. Its numbers clearly
exceed the numbers of several current members of the G20 such as Argentina or South Africa.
These facts supported the idea[by whom?] that Spain should seek permanent membership in the G20.
However, Spain, a permanent guest, does not plan to request official membership. [44]

Polish aspirations[edit]
In contrast with the Spanish position, the Polish government has repeatedly asked to join the G20.
Before the 2009 G20 London summit, the Polish government expressed an interest in joining with
Spain and the Netherlands and condemned an "organisational mess" in which a few European
leaders speak in the name of all the EU without legitimate authorisation in cases which belong to
the European Commission.[citation needed]
During a 2010 meeting with foreign diplomats, Polish president Lech Kaczyński said:
The Polish economy is according to our data the 18th world economy. The place of my country is
among the members of the G20. This is a very simple postulate: firstly – it results from the size of
the Polish economy, secondly – it results from the fact that Poland is the biggest country in its region
and the biggest country that has experienced a certain story. That story is a political and economic
transformation.[74]
In 2012, Tim Ferguson wrote in Forbes that swapping Argentina for Poland should be considered,
claiming that the Polish economy was headed toward a leadership role in Europe and its
membership would be more legitimate.[75][76] A similar opinion was expressed by Marcin Sobczyk in
the Wall Street Journal.[77] Mamta Murthi from the World Bank said: "To be in 'a club', what Poland
can do is to continue working as if it already is in the club it wants to join." [78]
In 2014, consulting company Ernst & Young published its report about optimal members for G20.
After analyzing trade, institutional and investment links Poland was included as one of the optimal
members.[79]
G20 membership has been part of the look program of Poland's Law and Justice party and
President Andrzej Duda.[80] In March 2017, Deputy Prime Minister of Poland Mateusz
Morawiecki took part in a meeting of G20 financial ministers in Baden-Baden as the first Polish
representative.[81][82]

Global Governance Group (3G) response[edit]

In June 2010, Singapore's representative to the United Nations warned the G20 that its decisions
would affect "all countries, big and small", and asserted that prominent non-G20 members should be
included in financial reform discussions.[83] Singapore thereafter took a leading role in organizing
the Global Governance Group (3G), an informal grouping of 30 non-G20 countries (including
several microstates and many Third World countries) with the aim of collectively channelling their
views into the G20 process more effectively.[84][85][86] Singapore's chairing of the 3G was cited as a
rationale for inviting Singapore to the November 2010 G20 summit in South Korea, [87] as well as
2011, 2013, 2014, 2015, 2016, and 2017 summits. [citation needed]

Foreign Policy critiques[edit]
The American magazine Foreign Policy has published articles condemning the G20, in terms of its
principal function as an alternative to the supposedly exclusive G8. It questions the actions of some
of the G20 members and advances the notion that some nations should not have membership in the
first place. Furthermore, with the effects of the Great Recession still ongoing, the magazine has
criticized the G20's efforts to implement reforms of the world's financial institutions, branding such
efforts as failures.[88]

Calls for removal of Russia[edit]

In March 2022, following Russia's invasion of Ukraine, U.S. President Joe Biden called for the
removal of Russia from the group. Alternatively, he suggested that Ukraine be allowed to attend the
2022 summit, despite its lack of membership. [89] Canadian Prime Minister Justin Trudeau also said
the group should "re-evaluate" Russia's participation. [90] Russia claims it would not be a significant
issue, as most G20 members are already fighting Russia economically due to the war. [91] China
suggested that expelling Russia would be counterproductive. [89] In November 2022, Indonesia and
Russia stated that Vladimir Putin would not attend the G20 summit in person, but may attend
virtually.[92] During the 2022 summit, Ukrainian president Volodymyr Zelenskyy appeared in a video
statement and repeatedly addressed the assembly as the 'G19' as a means of indicating his
viewpoint that Russia should be removed from the group.
The International Group of Seven (G7) is an intergovernmental political forum consisting
of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States; additionally,
the European Union (EU) is a "non-enumerated member". It is officially organized around shared
values of pluralism and representative government,[1] with members making up the world's
largest IMF advanced economies and liberal democracies.[2][3] As of 2020, G7 members account for
over half of global net wealth (at over $200 trillion),[4] 30 to 43 percent of global gross domestic
product,[n 1] and 10 percent of the world's population (770 million people).[5] Members are great
powers in global affairs and maintain mutually close political, economic, diplomatic, and military
relations.
Originating from an ad hoc gathering of finance ministers in 1973, the G7 has since become a
formal, high-profile venue for discussing and coordinating solutions to major global issues, especially
in the areas of trade, security, economics, and climate change.[6] Each member's head of
government or state, along with the EU's Commission President and Council President, meet
annually at the G7 Summit; other high-ranking officials of the G7 and the EU meet throughout the
year. Representatives of other states and international organizations are often invited as guests,
with Russia having been a formal member (as part of the Group of Eight) from 1997 to 2014.
The G7 is not based on a treaty and has no permanent secretariat or office. It is organized through a
presidency that rotates annually among the member states, with the presiding state setting the
group's priorities and hosting and organizing its summit; Japan currently presides for 2023. [7] While
lacking a legal or institutional basis, the G7 is widely considered to wield significant international
influence;[8] it has catalyzed or spearheaded several major global initiatives, including efforts to
combat the HIV/AIDS pandemic, provide financial aid to developing countries, and address climate
change through the 2015 Paris Agreement.[8][1][9] However, the group has been criticized by observers
for its allegedly outdated and limited membership, narrow global representation, and ineffectualness.
[10][11][12]
 It is also opposed by anti-globalization groups, which often protest at summits.
Pros and cons
Pros

The G20 brings together the world's major and systemically important economies. Its members
represent 85% of global GDP, 75% of international trade and two-thirds of the world's
population.

The G20 continues to play a significant role in shaping and strengthening global architecture
and governance on all major international economic issues.
Limitations of G20:-

Inability to arrest the drift towards mercantilism on the part of world's biggest trading nations-
USA and china.
• Lost focus on global financial issues . G20 is discussing climate change and women
empowerment, so bilateral trade issues are discussed.
Inability to arrest the drift towards mercantilism on the part of world’s biggest trading nations-USA
and china.
• Lost focus on global financial issues . G20 is discussing climate change and women empowerment,
so bilateral trade issues are discussed.
Conclusion

In conclusion, the G20 is an important international forum that plays

a critical role in promoting economic cooperation and stability. With
its diverse membership and commitment to finding solutions to global
challenges, the G20 is well-positioned to address the complex
economic issues facing the world today.
Bibliography
https://timesofindia.indiatimes.com/readersblog/khati-assamese/discovering-the-power-of-g20-how-
pm-modi-is-shaping-the-future-of-the-worlds-leading-economies-50128/

https://www.g20.org/en/

https://en.wikipedia.org/wiki/G20

https://www.oecd.org/g20/

https://g20.mygov.in/

https://www.dfat.gov.au/trade/organisations/g20