Name: Ritika

Roll no: 21014724028

Class: MA political science, sem 1V
Email: ritikabaderia@gmail.com
G20 AND THE PRESIDENCY GAME
In 1999, finance ministers and central bank governors of about 19 countries sat
in Germany to decide the future of the global financial system. The aim was to
bring stable and sustainable economic growth that benefits everyone. Till then,
the G20 presidency has shifted to various countries and in December 2022,
India took over the seat. The situation now is different from the earlier as the
world is going through varied issues, such as the pandemic, Russia -Ukraine
conflict, the rising food, and fuel prices, and an economic upsurge. PM
Narendra Modi, therefore, promised to make G20 a catalyst for global change
by focusing on issues of architecture, sustainable energy transition, digital
transformation, and global health.
The might of G20
One may wonder that the strength of G20 is only in terms of the countries it
represents but the forum represents 65% of the population, 79% of the world
trade, 84% of the world economy and is a contributor of around 79% of world
carbon emission. Data from IMF highlights the fact that the G20 countries have
doubled their economic importance in the past two decades where their total
share in GDP rose by 22.9% from 1999 to 2022. It runs about 97% of the
world’s nuclear capacity with countries like the US and France accounting for
half of the global total. In this context, it is important for the member countries
to work towards equitable, sustainable and pro planet goals.
How ready is India?
The world is in middle of an unparalleled multidimensional crisis but India has
prepared itself to provide an overall development. India for this has
constituted 13 working groups under the SHERPA TRACK that will provide
recommendations on issues of employment, trade, investment, and digital
economy. Under the finance track, G20 central banks and finance ministers will
discuss issues concerning macroeconomic development, international financial
architecture, and economic risk. India’s preparedness also comes from its
achievements -
Strategic planning- India’s method of handling the Covid pandemic was
commendable and its genius method of controlling the spread by timely
lockdown, strict vaccination, and preventive measures made India popular.
India’s inflation was 5.78% in contrast to the US inflation at 8.5% which
boosted the country’s confidence and made it the fastest growing major
economy in the world.
Independent foreign policy- India’s neutral stand on the recent Russia- Ukraine
conflict has highlighted the country’s independent foreign policy. Other
countries are well aware that India favors its national interest and is ready to
take a stand for it. India has over the past signed strategic partnership
agreements with more than a dozen countries. A fractured G20 posed a great
challenge to Indonesia but India’s credibility cannot be questioned because of
its ability to bring both the conflicting nations together.
Development models- The country’s ideas of ‘ sabka sath, sabka vikas,
‘atmanirbhar Bharat, ‘one Earth, one family, one future’ (vasudhaiva
kutumbakam), and digital India have set before the world the concept of
progressive and overall development. Slowly, India is becoming a model of
development for other developing countries.
Balancing game- The country is well aware of the geopolitical tensions and is
strategically countering them by being a part of various organisations such as
the QUAD, IPEF, and the recent- U2I2. The country openly condemned the BRI
and enhanced its connectivity with other countries by organising summits,
meetings, and dialogues.
Prioritising climate- India has raised climate concerns in many forums and has
targeted to achieve net zero carbon emissions by 2050. PM Modi was awarded
‘champion of the earth award’ for showing excellent efforts in championing
the international solar alliance and promoting new areas of level of
cooperation. Idea of panchamrit, elimination of single-use plastic, and working
on a solar alliance are some challenging yet achievable efforts that highlight
India’s priorities.
Economically strong- Through the vision of 30-30-30 by 2030, India aims to
shift 30% of its food demand to sustainable diets and healthy diets. Due to the
global supply crunch, India has been a key exporter of wheat and had exported
around 8,850 lacs worth of fertilizer in September 2022 making its growth rate
increase by 294%.
Values and ideals- India has never given upon democracy and works towards
maintaining peace and stability in the international arena. It sent 7,725 kg of
humanitarian assistance to Ukraine and about 40,000 tons of wheat to
Afghanistan. This improved the image of the country making it trustworthy and
helpful.
The country took over the presidency of SCO in sept. 2022, was a founding
member of SAARC (1985) and was the founder of NAM. This shows that the
country is not afraid to lead and bring progressive changes, although, the
presidency of G20 is itself a challenge.
Towards the goal of an inclusive, ambitious, decisive, and action-oriented
presidency
PM Modi called for an action-oriented presidency where the country’s main
focus will be on countering the digital divide, working towards a blue economy,
ensuring MSME participation, and reducing conflicts. This will be achieved by
encouraging multilateralism, ensuring parity between nations and climate
financing. India for this needs to focus on-
Data for development- Mr. Modi said that digital transformation is the most
remarkable change of our era and its proper use can help alleviate poverty and
climate concerns. Today, only 50 countries have digital payment systems and it
is the responsibility of G20 leaders to maintain that the benefits of digital
transformation should not be confined to a small part of human race. Thus,
contouring the digital divide will be a key priority at the summit.
LiFE- The idea of lifestyle for development is based on sustainable
development. It will be achieved through behavioural change, encouraging
industries to adjust according to the changing demands and the government
role in revisiting their strategies for achieving sustainable production. UK,
France and Argentina have already supported LiFE.
Women led development- India is prioritising women led development. With
the increasing priority given to capital and finance, the G20 members can focus
on multiskilling and creating a human talent pool. This will not only help the
people but will also help the country to tackle challenges like the recent
pandemic. G20 members can create an employment working group which will
work towards building human capital.
Shift from brown economy- G20 collective efforts should be towards a
transition from the existing brown economy to a more sustainable and eco-
friendly one. India’s presidency will be important in respect of providing
adequate attention to the developing nations by climate financing, logistic
help, and market ecosystem whereas the developed nations will be controlled
by regulatory and non-biased framework.
Equitable economic recovery- India’s presidency will be important in respect of
providing a sustainable and inclusive multilateral trading system where
collective action is expected towards ensuring open supply chains for essential
commodities and collaborations to accelerate investments. India has already
profited by exports of millets, fertilizers and is expected to further grow its
economy in the upcoming years.
Blue economy- The concept of blue economy emerged in Rio+20 conference
and the idea was to create ocean-based climate solutions. Working on blue
economy will help in achieving SDG 14(life below water). The G20 members
must decarbonize global shipping, conserve coastal wetlands, promote
aquaculture, and encourage unharmful tourism. Mr. Modi in this regard,
visited the mangrove forest in Indonesia to highlight their important role in
global conservation efforts.
India takes the presidency at the time when the world is in a multidimensional
crisis and the country is one of the fastest growing economy in the world. It is
yet to be seen as how the country will convince the major powers to take
coordinated efforts to ‘make the world a better place’ in Modi words.