G20-Summit

What is G-20?

G20-Summit is a group of 20 comprising 19 countries and the European Union (EU). It is made to address global issues like financial stability, climate change, sustainable development, etc. It includes the largest economies, finance ministries, and both industrialized and developing nations, It accounts for 80% of the world’s gross product (GWP), 75% of international trade, a third of the global population, and 60% of the world’s land area.

When was G20 Summit founded?

The G20 Summit was founded in 1999 in response to several world economic crises. It is the latest in a series of post world war 2. Since 2008, aimed at international coordination of economic policy, which includes institutions such as the Bretton Woods twins, the International Monetary Fund, and the World Bank, and it was conducted at least once a year, with summits involving each member’s head of government or state, finance minister, foreign minister, and other high-ranking officials. 

History of the G20-Summit

The G-20 was established in the wake of the Asian financial crisis in 1997- 1998. Better coordination of significant economies was needed to address global economic challenges. Initially, the G20 was a meeting of finance ministers and central bank governance but was upgraded to a leaders-level summit in 2008 in response to the global financial crisis. Since then the G20 Summit has played a crucial role in shaping the international economic agenda and coordinating global economic policies.

Members of the G20-Summit

As of 2023, there are 20 members in the group. They are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, South Korea, Japan, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. Guest invitees include, amongst others, Spain, the United Nations, the World Bank, the African Union, and ASEAN.

How do they decide leader for the summit?

To decide which member nation gets to chair the G-20 leaders meeting for a given year, all members, except Group 1 and Group 2, all countries within a group are eligible to take over the G-20 presidency when it’s their group’s turn. Therefore, the states within the relevant group must negotiate to select the next G-20 president. Each year a different G-20 member country assumes the presidency from December 1 until 30 November. This system has existed since 2010 when South Korea in group 5 held the G-20 chair.

The Primary Focus Of The G-20 Summit

The g-20 primary focus has been the governance of the global economy. Summit themes vary from year to year. The theme of the 2006 G-20 ministerial meeting was “building and sustaining prosperity.” the issues discussed included domestic reforms to achieve “ sustained growth ”, global energy and resource, commodity markets, reform of the world bank and IMF, and the impact of demographic changes 

In 2007, south africa hosted the secretariat with Trevor, A manual—south African minister of finance as chairperson of the G-20. In 2008, Guido, Mantega, brazils minister of finance, was the G-20 chairperson and proposed dialogue on competition in financial markets, clean energy, economic development, and fiscal element of growth and development. On 11 October 2008, a meeting of G20 would be necessary in finding solutions to the burgeoning economic crisis of 2008.

G20 India 2023 – India’s role in G20 

The G20 logo draws inspiration from the vibrant colors of India’s national flag, – saffron, white and green, and blue, it contains planet Earth with the lotus, India’s national flower that reflects India’s pro-planet approach to life, one in perfect harmony with nature. Below the G20 logo is “Bharat”, written in the Devanagari script. 

The theme of the G20 presidency Presidency – “ Vasudhaiva Kutumbakam” or “One Earth One Family One Future” – is drawn from the ancient Sanskrit text of the Maha Upanishad. Essentially, the theme affirms the value of all life – human, animal, plant, and microorganisms and their interconnectedness on the planet Earth and in the wider universe.

G20 India’s Presidency

The 18th G20 Heads of State and government summit in New Delhi will culminate all the G20 processes and meetings held throughout the year among ministers, senior officials, and civil societies. During its course, India will host about 200 sessions in 32 different sectors in multiple locations across India. 

According to our Prime Minister, Narendra Modi, this term can be an opportunity for India to share its expertise with the world in areas of women empowerment, democracy, and digital technologies.

The  G20 Presidency also marks the beginning of “Amrit kal” the 25 years beginning from the 75th anniversary of its independence on 15 August 2022, leading up to the cemetery of its independence, towards a futuristic, prosperous, inclusive, and developed society, distinguished by a human-centric approach at its core.

India’s foreign policy focuses on the ‘global common good’. Through its G20 leadership, India hopes to extend this principle toward finding sustainable solutions to some of the critical global challenges emerging out of the interconnectedness of the world, such as climate change, new and emerging technologies, food and energy security, etc.

Challenges for G20-Summit Countries

Rising Geopolitical Rifts – the overall global economy is having trouble coping with the rising geopolitical rifts like conflict between the world’s two largest economies, the US and China, or the drop in trade between the UK and the euro area.

Slow down of significant economies – china, which is generally considered one of the main drivers of global economies, is currently experiencing a severe slowdown as a result of its ongoing real estate crisis.

Impact of Russia and Ukraine war – Russia and Ukraine war has also significantly increased worldwide inflation and the associated Western sanctions have worsened the situation.

Impact of Rising Inflation – central banks worldwide have hiked interest rates in response to the high inflation, which has further slowed economic activity.

Conclusion

The primary purpose of establishing G20 is to create an atmosphere that supports equitable global growth and development. They bring together the most powerful economies in the world, both developed and emerging, to discuss global financial and economic stability.

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