From UPSC perspective, the following things are important :
Prelims level : G20
Mains level : Significance of G20 summit
Leaders of the G-20 nations gathered at Bali in Indonesia for the 17th summit of the world’s most advanced economies.
Agenda of this summit
- The motto for this summit is Recover Together, Recover Stronger.
- The leaders will engage in discussions over three sessions on-
- Food and Energy security
- Health Partnership for Global Infrastructure and Investment, and
- Digital Transformation
- Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.
- Collectively, the G20 economies account for around 85 percent of the Gross World Product (GWP), 80 percent of world trade.
- To tackle the problems or address issues that plague the world, the heads of governments of the G20 nations periodically participate in summits.
- In addition to it, the group also hosts separate meetings of the finance ministers and foreign ministers.
- The G20 has no permanent staff of its own and its chairmanship rotates annually between nations divided into regional groupings.
Aims and objectives
- The Group was formed with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.
- The forum aims to pre-empt the balance of payments problems and turmoil on financial markets by improved coordination of monetary, fiscal, and financial policies.
- It seeks to address issues that go beyond the responsibilities of any one organization.
Members of G20
- The members of the G20 consist of 19 individual countries plus the European Union (EU).
- The 19 member countries of the forum are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States.
- The European Union is represented by the European Commission and by the European Central Bank.
Why was the G-20 created?
For emerging nations: It was created as an acceptable medium between the more “elitist” G-7 (then the G-8), and the more unwieldy 38-member Organisation for Economic Co-operation and Development (OECD).
- Increasing representation: Over the past two decades, the global economic balance has shifted, and the G-20 has been seen as a more representative and egalitarian grouping of global leadership.
- Reducing groupism within: The G-20 was conceived in a more unified, post-Soviet era, when western economies made the rules, China was just on the rise and Russia was still recovering from its breakup.
- Economic boost for west: It was particularly useful in steering the global economy after the global financing crisis and banking collapse of 2008.
- Global-south on focus: Significantly, next year the “Troika” of G-20 will be made up of emerging economies for the first time with India, Indonesia and Brazil — an indicator of the shift in the global economic agenda towards the Global South.
Economic significance of G-20
- G-20 countries represent 85% of the global GDP.
- It accounts for 75% of global trade and 66% of the world population.
What makes this G-20 different from others?
- War mongers at table: For the world, this is the first G-20 since Russia began the war in Ukraine and the west imposed sanctions on Russia.
- Hosting a stronger China: This is only the second time Chinese President Xi Jinping has travelled abroad since the COVID pandemic, and the first time since he was re-elected at China’s Party Congress last month.
- Next chair for India: For India, the importance of the summit of the world’s most advanced economies is that it is India’s turn to host the summit next.
Bilateral meets on the sidelines
- All eyes will also be on the bilateral summits happening by the sidelines — including the Biden-Xi summit at a time when U.S.-China tensions are at a high.
- While neither Delhi nor Beijing have confirmed a Modi-Xi meeting, any interaction between the two leaders will be the first since the military stand-off at the LAC.
- PM Modi is expected to meet many of the G-20 leaders and others, and will invite them to next year’s summit in India.
- Among the leaders who are attending for the first time as heads of their countries are UK PM Rishi Sunak.
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