G 20 & India’s Presidency

Why in news ?
 India will assume for the first time the Group of 20 (G20) yearlong presidency
from December 1, 2022 to November 30, 2023, culminating with the G20 Summit
in India in 2023.

What is G20?
1. The G20 is an informal group of 19 countries and the European Union, with
representatives of theInternational Monetary Fund and the World Bank.
2. The G20 membership comprises a mix of the world’s largest advanced and
emerging economies, representing about two-thirds of the world’s
population, 90% of global gross domestic product, 80% of global investment
and over 80% of global trade + 67% of planet population.

Origin :
 1997-1999 ASIAN Financial Crisis
 Amid 2008 Financial Crisis

G20 Members :
 The members of the G20 are Argentina, Australia, Brazil, Canada,
China, France, Germany, India, Indonesia, Italy, Japan, Republic of
Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the
United Kingdom, the United States, and the European Union.
 Spain as a permanent, non-member invitee, also attends leader summits.

Structure and Functioning of G20:

 The G20 Presidency rotates annually according to a system that ensures a
regional balance over time.
 For the selection of presidency, the 19 countries are divided into 5 groups,
each having no morethan 4 countries. The presidency rotates between each
group. Every year the G20 selects a country from another group to be
president.
India : GROUP 2
 The G20 does not have a permanent secretariat or Headquarters. Instead,
the G20 president is responsible for bringing together the G20 agenda in
consultation with other members and in response to developments in the
global economy.
 TROIKA: Every year when a new country takes on the presidency (in this
case Argentina 2018), it works hand in hand with the previous presidency
(Germany, 2017) and the next presidency (Japan, 2019) and this is
collectively known as TROIKA. This ensures continuity and consistency of
the group’s agenda.
Cooperation:
The work of G20 members is supported by several international
organisations that provide policy advice. These organisations include:

1. The Financial Stability Board (FSB). The FSB, which was established by G20
leaders following the onset of the global financial crisis
2. The International Labour Organization (ILO).
3. The International Monetary Fund (IMF).
4. The Organisation for Economic Co-operation and Development (OECD)
5. United Nations (UN)
6. World Bank
7. The World Trade Organization (WTO)

Issues Addressed by G20:

i. Financial markets
ii. Tax and fiscal policy
iii. Trade
iv. Agriculture
v. Employment
vi. Energy
vii. Fight against corruption
viii. Advancement of women in job market
ix. 2030 agenda for Sustainable development
x. Climate Change
xi. Global Health
xii. Anti-terrorism
xiii. Inclusive entrepreneurship

India's Priorities in G20 Summits:

a) Checking tax evasion to fight corruption
b) Choking terror funds
c) Cutting the cost of remittances
d) Market access for key drugs
e) Reforms in the World Trade Organisation to improve its functioning
f) “Full implementation” of the Paris Agreement

Editorial : HEADING THE G-20 AND NEW DELHI’S CHOICES

27.08.2022

India has earlier hosted large international conference such as:

1. the Non Alignment Movement [NAM], 1983

 2. the 3rd India African Forum Summit, 2015.

G20 is the world's informal steering directorate on global economic issues which entails the
responsibility of shaping decisions making on key challenges facing the world today.

Importance & Complexities :

1. Advisory Body [not treaty based]

2. The representation of United Nations(UN), World Bank, International Monetary
Fund(IMF) , World Trade Organisation(WTO), World Health Organisation (WHO)
and other multilateral institutions in it makes G20 and incomparable body.
3. Played a vital role in addressing financial and economical challenges in the global
financial crisis of 2008-09 and the Eurozone crisis of 2010. [ In the era of G8 ,US,
EU, RUSSIA, CHINA emerging as major powers ]
4. The disastrous impact of novel Corona virus Pandemic, the war in Ukraine, India
~ China border tensions, European Union/US vs Russia hostility and
deteriorating US ~ China relations are already visible in the run up to the 2022
Bali Summit. (This will affect Delhi Summit)

India’s Choices :
 The G20 Presidency offers a unique branding opportunity for India's recent
achievements including the ability to come back covid-19 effectively at home and
abroad through vaccine aid and diplomacy. Other achievements are :
i. India's digital revolution
ii. switching to renewables
iii. meeting its target to counter climate change
iv. pushing to self Reliance in manufacturing
v. reshaping global value chains
vi. Entrepreneurship, business innovations ,rise of startups
vii. gender progress
 Four democracies on the path to becoming powerful economic players :
b) Indonesia
c) India
d) Brazil
e) South Africa
hold the presidents from December 2001 to November 2025, this offers a rare
opportunity for Synergy and solidarity to advance the interest of developing
world and assert their combined leadership of global south.
 All three members of IBSA:
a) India
b) Brazil
c) South Africa will hold the G20 Presidency consecutively in year 2023 2024
and 2025 this forum that is insulated from the geopolitical pressures of bricks
can develop a cohesive plan to project the priority concerns of the Global
south.
  India needs to get ready to emerge as a chief Global diplomat. As G20 president
India will be obliged to make a broader view of G20 agenda to synthesize the
divergent interest of all constituents of the forum :
a) 5 permanent members of UN Security Council
b) the world United under the flag of G7
c) 5 members of BRICS
d) and other G20 members such as Argentina and Mexico
India should factor in the perspectives of countries not represented in the G20 with
pragmatic and human-centric solutions to global issues.
The important aim : To end Africa's marginalization by elevating African Union from
permanent observe to full-fledged member of G20 10 placing it on a par with the European
Union.