News Highlight
- From December 1, 2022, to November 30, 2023, India will hold the Group of 20 (G20) year-long presidency, which will culminate with the G20 Summit in India in 2023.
Key Takeaway
- Over 200 meetings with hundreds of ministers, officials, diplomats, business people, non-governmental organisations, working groups, and engagement groups of the G20, which is made up of 19 significant economies and the European Union, will be held in India in the upcoming months (EU).
The significance of India as a G20 president
- It is the world’s informal steering directorate on global economic issues.
- It entails the responsibility of shaping decision-making on key challenges facing the world today.
The challenges faced by the G20 at present.
- The existential crisis of countries:
- The major powers of the G20 nations are facing challenges, especially after the disastrous impact of the novel coronavirus pandemic. This makes the task of the presidency of the country much more complicated. This is seen in the current president of Indonesia.
- Various international disputes:
- The war in Ukraine, India-China border tensions, EU/U.S.-Russia hostility, and deteriorating U.S.-China relations all impact the outcome of the G20. So, the upcoming Bali summit will affect the Delhi summit.
The major opportunities for India as a G20 president
- A unique branding opportunity:
- First, the G20 presidency offers a unique branding opportunity for India’s recent achievements. This includes the ability to combat COVID-19 both in India and abroad through India’s vaccine diplomacy, India’s digital revolution, reshaping global value chains, etc.
- Utilised to transform India’s sub-optimal physical infrastructure:
- It can be utilised to transform India’s sub-optimal physical infrastructure to create an attractive investment and tourism destination, especially as several important G20 meetings will be hosted outside Delhi.
- The synergy to advance the interests of the developing world:
- Four democracies—Indonesia, India, Brazil, and South Africa hold the presidency from December 2021 to November 2025. This offers a rare opportunity for synergy and solidarity to advance the interests of the developing world and to assert their combined leadership of the Global South.
- The Role of the IBSA Forum:
- All three members of the IBSA Forum — India, Brazil, and South Africa — will hold the G20 presidency consecutively in 2023, 2024, and 2025. This forum is insulated from geopolitical pressures and can develop a cohesive plan to project the priority concerns of the Global South.
What is G-20?
- The G20 was formed in 1999 against the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular.
- Its aim is to secure global financial stability by involving middle-income countries.
- It is an informal group of 19 countries and the European Union (EU), with representatives of the International Monetary Fund and the World Bank.
- Members:
- 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 EU
- India has been a member of the G20 since its inception in 1999.
Significance of the G-20
- G-20 is a vital bloc:
- It comprises 90% of the global Gross Domestic Product and 80% of the global trade.
- It also comprises more than two-thirds of the world’s population.
- Address current issues:
- G-20 helps in strategising current issues.Â
- For example, G20 Global Smart Cities Alliance is establishing global policy norms for data collection and use, transparency, and public trust.
- The Alliance is leading smart city governance initiatives in more than 36 cities around the world.
- Taming the financial crisis:
- The Financial Stability Board is an international body that monitors and makes recommendations on the global financial system.Â
- It was established after the G20 London summit in April 2009 as a successor to the Financial Stability Forum.
- Platform to globalisation:
- It helps voice various issues like financial stability, artificial intelligence, energy security etc.
- Balancing relationship:
- India has successfully used this platform for trilateral meetings like JAI (Japan-Australia-India) and RIC (Russia-India-China), balancing its ties with global powers.
Pic Courtesy: Indian Express
Content Source: The Hindu