African Union becomes permanent member of G20

Context: -
African leaders expressed unanimous
support for the G20's decision to admit the
African Union as a permanent member of
the grouping.
An Overview of the News
 During the 18th G20 meeting in New
Delhi, India, Prime Minister
Narendra Modi officially announced the induction of the African Union (AU) as
the 21st permanent member.
 AU Commission Chair Moussa Faki Mahamat accepted Africa's full membership
in the G20.
 South African President and former AU Chair Cyril Ramaphosa was among the first
to support the decision.
 Prior to this decision, the G20 had only granted observer status to the African Union
since its establishment in 1999 in response to global economic crises.
African Union (AU):-
 The African Union (AU) is a continental union of 55 member states in Africa.
 The AU was officially launched on 9 July 2002 in Durban, South Africa.
 Its main purpose was to replace the Organization of African Unity (OAU), which
began on 25 May 1963 in Addis Ababa and was dissolved on 9 July 2002.
 The Assembly of the African Union, a semi-annual meeting of heads of state and
government of member states, makes the most important decisions within the AU.
 Chairman - Azali Assoumani
 Chairman of the Commission - Moussa Faki
 Parliamentary Speaker - Fortune Jade Charumbira

About G20
 It is an international forum of the world's leading economies established in 1999.
 Its primary objective is to promote international financial stability and sustainable
economic growth.
 The G20 serves as a forum to discuss and coordinate policies related to a wide range
of economic and financial issues such as trade, investment,
employment, energy and climate change.
President of Kenya - William Ruto
President of Egypt - Abdel-Fattah el-Sisi

Implications of BRICS Expansion

Why in news?
During the 15th BRICS summit, 5 member
grouping has invited 6 countries to become
new members.

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What is BRICS?
 Originally conceived as BRIC by Jim
O'Neill, the grouping
consisted of Brazil, Russia, India, and China.
 Launch- It was launched by a meeting of the Foreign Ministers of Brazil, Russia,
India and China in 2006.
 BRIC turned into BRICS in 2010, with the entry of South Africa.
 Chair- Chaired by member countries in rotational basis.
 South Africa is the chair for 2023.
 First summit- It was held in Yekaterinburg in 2009.

 New Development Bank (NDB)- It is established in 2014 by Fortaleza declaration.

It is formed to provide development assistance. The NDB has already financed 96
projects valued at 33 billion dollars
 Contingent Reserve Arrangement- It is established to supports countries facing
short-term balance-of-payments pressures.
 BRICS Expansion- It was reported that 40 countries have shown interest in BRICS’
membership, with 22 having submitted formal applications.
 However, the 5 member grouping had invited 6 new members.
Region Countries
West Asia Iran, Saudi Arabia and United Arab Emirates
Africa Egypt and Ethiopia
Latin America Argentina

What is the need for BRICS expansion?

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  Dominance of West- BRICS is formed with the West-dominated international
institutions that had emerged after the Second World War. It includes
o World Bank,
o International Monetary Fund,
o United Nations and its various bodies, particularly the United Nations Security
Council,
o World Trade Organization.
 Future dynamics- At Johannesburg, the UN Secretary General António Guterres
described those institutions as reflecting “yesterday’s world”. The United States has
led the western alliance in both the political and economic areas.
 Against West led world order- BRICS challenges West-led world order. It promotes
o Intra-BRICS economic and political cooperation,
o Builds institutions outside western control, and
o Robustly for wide-ranging reforms to accommodate interests of emerging
economies.
 Fair international order- The Johannesburg Declaration asserts that the members’
“strategic partnership” will be directed at achieving a more representative, fairer
international order.
 Wider coverage- The proposed BRICS expansion will have 46% of world
population, while its share of the global GDP will go from 31.5% in PPP terms to
37%, far ahead of the GDP of 30.7% of the G-7.
 Global trade- With the proposed BRICS expansion the global exports and global
imports will be boosted by 3.7% and 3% respectively.
 Energy sector- The global output will increase from 20% to 42%.
 Geo-strategic value- It will bring considerable geo-strategic value to the grouping.
Countries Importance
Saudi Arabia 35% of the oil production goes to China and India
Increased oil production despite US sanction, most of it
Iran
goes to China
They are an important presence in the strategically
Egypt and Ethiopia
important Horn of Africa and the Red Sea.
Argentina 2nd largest economy in Latin America
Major oil supplier to China and India, now looking at
Russia
Brazil as market

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  Outlook for global affairs- From 2020, both Saudi Arabia and the UAE have
shrugged off the U.S. yoke and shaped independent foreign policy paths for
themselves.
 Diplomatic relations- Saudi Arabia has pursued de-escalation and dialogue, ending
the Qatar blockade in January 2021, engaging with Turkey, and opening interactions
with Iran from April 2021.
 These regional engagements culminated in the China-brokered accord with Iran in
March this year.
 UAE- Iran -The UAE has also normalised ties with Iran and is focusing on
expanding its maritime footprint across the Gulf, the Gulf of Aden, the Red Sea and
the Horn of Africa.
 Regional cooperation- Iran’s entry into BRICS, besides its role in the energy sector,
opens up opportunities for
o Accelerated regional economic cooperation,
o Revival of the moribund north-south connectivity projects through
the Chabahar port with which India is associated.

What lies ahead?

 India and other BRICS members insist on asserting their strategic autonomy in a
multipolar world order, with member-nations demanding that their voices be heard
and their interests respected.
 A recent media report described the Johannesburg summit as a “turning point in
modern history”.

G20 New Delhi Declaration

Context: -
The Group of Twenty (G20) recently
adopted the G20 New Delhi Leader’s
Declaration.
Background:-

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  The New Delhi Leader’s Declaration
was adopted on September 9, 2023.
 The Countries committed to, accelerating their actions to address environmental crises
and challenges, including climate change.
About G20 New Delhi Leader’s Declaration:-
 The New Delhi Leader’s Declaration was adopted with consensus on a number of
issues.
 These include sustainable development goals (SDG), climate finance, energy
transitions, using and restoring natural ecosystems, harnessing and preserving ocean-
based economy, plastic pollution, reducing disaster risk, and building resilient
infrastructure.
 In the declaration under the Green Development Pact for a Sustainable Future, the
countries have committed to “urgently accelerate actions to address environmental
crises and challenges, including climate change”.
 Paris Agreement: One of the aims of the declaration is “to tackle climate change by
strengthening the full and effective implementation of the Paris Agreement and
its temperature goal.
 This reflects equity and the principle of common but differentiated responsibilities
and respective capabilities (CBDR).
 The inclusion of the principles of CBDR is interesting as some developed G20
countries such as the United States have been averse to the usage.
 The G20 members also cited the findings of the Intergovernmental Panel on
Climate Change (IPCC) Sixth Assessment Synthesis Report.
 It stated that Global greenhouse gas (GHG) emissions are projected to
peak between 2020 and at the latest before 2025 in global modeled pathways that
limit warming to 1.5°C with no or limited overshoot and in those that limit warming
to 2°C and assume immediate action.
 The G20 members also highlighted the macroeconomic risks stemming from
climate change and transition pathways.
 The G20 countries also noted the institutionalization of the Disaster Risk
Reduction Working Group under the presidency of India, which catalyzed efforts
toward disaster risk reduction.
 The document also talks about accelerating progress on early warning and early
action through strengthening national and local capacities, innovative financing tools,
private sector investments, and knowledge sharing.
The members supported the United Nations initiatives such as the Global Platform for
DRR and the Coalition for Disaster Resilient Infrastructure in “furtherance of such
collaboration and sharing”.

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