G20 GROUPING

G20 GROUPING

09-03-2023

G20 GROUPING

ABOUT

  1. The Group of Twenty (G20) is the premier intergovernmental forum for international economic cooperation.
  2. The G20 was founded in 1999 after the Asian financial crisis as a forum for the Finance Ministers and Central Bank Governors to discuss global economic and financial issues.
  3. The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for international economic cooperation”.
  4. The forum plays an important role in shaping and strengthening global architecture and governance on all major international economic issues.

 

G20 MEMBERS

  1. 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 the European Union.
  2. The G20 members represent around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.

 

HOW G20 WORKS?

  1. 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.
  2. Finance Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the Sherpa Track.
  3. The G20 process from the Sherpa side is coordinated by the Sherpas of member countries, who are personal emissaries of the Leaders.
  4. Finance Track is led by Finance Ministers and Central Bank Governors of the member countries.
  5. 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.
  6. The Finance Track is mainly led by the Ministry of Finance. These working groups meet regularly throughout the term of each Presidency.
  7. The Sherpas oversee negotiations over the course of the year, discussing agenda items for the Summit and coordinating the substantive work of the G20.
  8. In addition, there are Engagement Groups which bring together civil societies, parliamentarians, think tanks, women, youth, labour, businesses and researchers of the G20 countries.
  9. 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.

SHORTCOMINGS

  1. No permanent secretariat: Simultaneously, the informal structure of the G20, with a rotating chair and no permanent secretariat, means that agendas are determined each year by the chair and so can swing widely, and formal mechanisms to monitor follow-through on countries’ public commitments are weak.
  2. Considered Bias: The G20 is composed of 20 large and important economies. This creates a situation in which small countries have to follow their big brothers, in order to survive.
  3. Failed to live up to the expectations: Finance ministers and heads of state now come to the table with their hands tied, their positions determined in advance by their governments and a formal script that precludes meaningful and creative compromises.
  4. More show off and less efficient: Meetings have become talkfests and photo opportunities. The willingness to come together in the hostile environment of late 2008 and early 2009 has entirely dissipated. The G20 agenda utterly fails to break with the tired, broken policies of the free market.
  5. Lack of consensus: At recent summits, countries have struggled to reach a unified consensus—the hallmark of previous iterations of the conference—as the interests of high- and low-income economies continue to diverge.

 

INDIA'S G20 PRESIDENCY

On December 1,2022 India assumed the presidency of the G20 forum, taking over from Indonesia. Prime Minister Narendra Modi called it a “huge opportunity for India”

INDIA'S G20 PRIORITIES

  1. Green Development, Climate Finance & Lifestyle for Environment (LiFE)
  2. Accelerated, Inclusive & Resilient Growth
  3. Accelerating progress on Sustainable Development Goals (SDGs)
  4. Technological Transformation & Digital Public Infrastructure
  5. Multilateral Institutions for the 21st century
  6. Women-led development

PROGRAMS RELATED TO G20 EVENT

  1. India kick-started its presidency term agenda with a series of cultural initiatives that included various Jan Bhagidari activities, a special University Connect event with 75 educational institutions from across the country, the lighting up of 100 ASI monuments with the G20 logo and colours, and showcasing G20 at the Hombill festival in Nagaland.
  2. Sand artist Shri Sudarshan Pattnaik also created sand art of India's G20 logo on Puri beach in Odisha. Various other events, youth activities, cultural performances, and site excursions showcasing the sights and traditions of respective city-venues, are also planned throughout the year-long calendar.

 

“Those who hold the pen, write the rules”

 

The time has come for India to both hold the pen and write the rules for more equitable global economics and governance.

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