This article gives you an overview of G20, since its formation to latest key achievements in 2015 Summit. Stay tuned to India and G20 as we capture the antalya summit 2015 in detail.
G20 in a quick fast track glance
Together, the G20 economies account for –
- 85% of the global economic output
- 80% of world trade, and
- 65% of the global population.
Which of the 20 members make promise of inclusive and robust growth in 2015?
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 of America, and the European Union.
Let’s take a Historical dive on G20
- The G20 was formally established on 26 September, 1999, at the Finance Ministers’ meeting of G7 (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) in the aftermath of the Asian Financial Crisis.
- The G20 convened for the first time at the leaders’ level in Washington, D.C. on November 14-15, 2008, to respond collectively to the 2008-09 crisis.
- In order to restore global growth, strengthen the global financial system, and reform international financial institutions.
- The G20 played a key role in supporting the first stages of economic recovery and continues to promote measures to reform international financial institutions, improve financial regulation, and strengthen the global economy through an increasingly comprehensive agenda.
- This year, Turkish G20 Presidency’s theme is “Collective Action for Inclusive and Robust Growth”.
Okay, how’s the structure of G20?
- The G-20 operates without a permanent secretariat or staff. (Take a Note of it, it may form a prelims’ question)
- The group’s chair is part of a revolving three-member management group of past, present and future chairs, referred to as the “Troika”.
- The role of the Troika is to ensure continuity in the G-20’s work and management across host years.
- Turkey will host the 2015 summit in Antalya, while China will host the 2016 summit in Hangzhou.
Then, what is the role of Asian countries?
- A 2011 report released by the Asian Development Bank (ADB) predicted that large Asian economies such as China and India would play a more important role in global economic governance in future.
- The report claimed that the rise of emerging market economies heralded a new world order, in which the G-20 would become the global economic steering committee.
- The ADB furthermore noted that Asian countries had led the global recovery following the late-2000s recession.
- It predicted that the region would have a greater presence on the global stage, shaping the G-20’s agenda for balanced and sustainable growth through strengthening intraregional trade and stimulating domestic demand.
What are the significant outcomes of Turkey’s G20 presidency in 2015?
#1. Framework for Strong, Sustainable and Balanced Growth
- Antalya Action Plan including national and global steps for strong, sustainable and balanced growth.
- Adjusted Growth Strategies, including policies towards inclusiveness, in line with recent economic developments.
#2. Investment and Infrastructure
- G20 Investment Strategies and G20/OECD Report on G20 Investment Strategies.
- PPP Guidelines: World Bank Group Infrastructure Deliverables.
#3. International financial Architecture
- Strong emphasis on the importance of the full implementation of the 2010 IMF Quota and Governance Reform.
- Leaders provided a strong momentum to completion of the SDR basket review so as the basket continues to reflect the role of currencies in the global trading and financial system.
#4. International Tax
Base Erosion and Profit Shifting (BEPS) Action Plan finalised.
#5. Climate Change Finance
Leaders committed to work together to for a successful outcome of the COP21 and a fair, balanced, ambitious, durable and dynamic agreement.
G20 and Low Income Developing Countries (LIDC) Framework
G20 Food Security Action Plan
- Statement of a strong support for a successful WTO Nairobi Ministers Conference with balanced outcomes on Doha Development agenda issues and guidance for post-Nairobi.
- Report on better integration of SME and LIDC’s into the Global Value Chains.
What are the India’s concerns and reform agenda?
- Prime Minister Modi had expressed hope earlier, that the US would ratify the quota reforms of the International Monitoring Fund, a key demand of the developing countries.
- Optimistic news came about that, G20 communique backed India on the issue of IMF quota reforms and called for early reforms, and expressed disappointment with the delay.
Why is there need of IMF Quota review reform?
- The IMF quota reforms are aimed at giving more voice and voting power to the emerging economies with regard to the functioning of the multilateral body.
- Once the review takes effect, India’s share will increase from the current 2.44 per cent to 2.75 per cent, following which the country will become the eighth largest quota holder at the IMF, up from the 11th position.
Does G20 would helped to resolve syrian crisis?
- The Guardian reports that Obama and Putin at G20, agreed that the United Nations will negotiate a peace deal between the Syrian government and the rebel groups.
- Putin also thanked David Cameron for sharing intelligence suggesting IS had taken down a Russian plane. Whether this means President Assad’s time is up is unclear.
- We’re a long way from a proper strategy to bring peace to Syria. However, Russia and the West talking is still a big step forwards.
- It also may mean countries will begin working more closely together to combat IS. May be!
Published with inputs from Arun