EXPLAINED: G20, Its Powers, And What To Expect From The Summit Under India's Presidency
With India now G20 president, govt is leaving no stone unturned to showcase the country's cultural heritage as well as its leading role in global affairs. We help decode all things related to G20.
With just days to go for the G20 Leaders' Summit, which will be held for the first time under India's presidency, the government is leaving no stone unturned to showcase the country's rich cultural heritage as well as its leading role in global affairs.
The upcoming summit, which will be held in New Delhi on September 9-10, will be the highest-profile international gathering ever to be hosted by India. Beautification of public spaces in Delhi as well as a complete makeover of the main summit site, the Pragati Maidan complex, have been made to welcome the delegates, which will include leaders from the world's top economies.
Ahead of the main summit in September, India has been hosting several working group meetings on areas of climate change, finance, tourism etc. India has hosted around 260 such meetings around 60 cities ahead of the September event.
But what is the G20 or Group of 20? Why was it formed? What does it do and what to expect from the India summit? In this article, we help decode all things related to the global forum.
What Is The G20 Or Group Of 20?
The G20 or Group of Twenty (G20) consists of 19 countries and the European Union. In simple terms, G20 is a platform for international economic cooperation. It is tasked with shaping and strengthening governance on all major global economic issues.
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union form the G20. Spain is invited as a permanent guest.
However, over the years, the bloc has not kept itself only at discussing economic issues and several pressing global matters like climate change, terrorism, trade, sustainable development, health, agriculture and energy have been part of its agenda.
For example, in the 2009 G20 Summit, the bloc deliberated on ways to address the issue of Iran building a covert nuclear facility. In the 2017 summit, the forum discussed how to enforce a ceasefire in Syria.
During the Covid-19 pandemic, G20 countries reached a consensus to suspend debt payments owed to them by some of the poorest countries, providing billions of dollars in relief.
The 19 nations and EU represent 65 per cent of the world population, 75 per cent of global trade and 85 per cent of the world's economy. Besides, the G20 members are also responsible for 79 per cent of global carbon emissions.
When Was G20 Formed And Why?
In the wake of the financial crisis in 1997 that hit East Asia and Southeast Asia, a need was felt to unite finance ministers and central bankers from the world's largest economies as well as developing nations. The goal was to secure financial stability by involving middle-income countries. In the backdrop of this, the G20 was formed in 1999.
The inaugural G20 finance ministers' meeting was held in the German capital Berlin.
About nine years later, during the 2008 global economic crisis or the Great Recession, a need was felt for intervention at the highest political level and the G20 was elevated to include heads of state and government. During that time, the forum's coordinated efforts helped restore economic growth while arresting panic.
The first G20 Summit with heads of state took place in 2008 in Washington DC, US.
How Are G20 Presidents Chosen?
The G20 does not have any permanent president and each year, the president is chosen through a system of rotation.
Presently, India holds the G20 presidency. To assume the presidency, a country needs to be supported by two other nations -- one that held the presidency the previous year and one that will assume the presidency the following year. Together, this is called the "Troika".
Indonesia held the G20 presidency in 2022, India holds it presently and Brazil will take over for the next year. Thus, Indonesia, India and Brazil are the "Troika" countries right now. In 2025, South Africa will be the G20 president.
Importantly, this is the first time when the "Troika" consists of three developing countries and emerging economies, Reuters reported.
What Happens When A Nation Assumes G20 Presidency?
Economic and financial coordination among the G20 members is the pivot of each summit's agenda.
These agenda of the summit and negotiations are coordinated by emissaries of the G20 countries, known as 'Sherpas'.
The G20 process is divided into two parallel tracks — the finance track and the Sherpa track.
The finance track is led by finance ministers and central bank governors of G20 nations. The Sherpas lead the sherpa track and oversee negotiations throughout the year.
These sherpas work together with finance ministers to set the agenda of the summit. Former NITI Aayog CEO Amitabh Kant is India's G20 Sherpa.
Parallelly, there are working or engagement groups who deliberate on policy making and specific themes. These groups constitute think tanks, civil societies, businesses etc.
Various international organisations, like the United Nations and International Monetary Fund, also participate in the meetings of these working groups.
What To Expect From The G20 Leaders' Summit In India?
The theme for India's G20 presidency is "Vasudhaiva Kutumbakam" or "One Earth-One Family-One Future". When India was handed over the G20 presidency last year in Bali, Indonesia, PM Modi said it will focus on equitable growth and a shared future for all.
The September G20 summit will be an opportunity for India to demonstrate and showcase its leading role in global affairs.
Amitabh Kant had said under India's leadership, G20 members would focus on global challenges like a slowing global economy, fears of recession and the climate crisis.
Another agenda, which has been pushed by PM Modi for several years, will be to bring reforms in organisations like the World Trade Organization, the International Monetary Fund, and the World Bank to better align them with the needs and aspirations of developing nations.
The war in Ukraine and the fallout of Russia suspending the Black Sea grain deal, which threatens to push millions into hunger and lead to a shortage of food supplies, will also dominate the agenda of the nations.
It also remains to be seen if PM Modi's pitch to give the African Union full membership of the grouping gets a nod from all members.
The African Union (AU) consists of 55 states that make up the countries of the African continent.
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