From UPSC perspective, the following things are important :
Prelims level : G7, G12, G20
Mains level : India's presidentship of G20
PM unveiled the logo, theme and website of India’s G20 presidency.
What is G20?
- The G20 was formed in 1999 in the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular.
- The first G20 Summit took place in 2008 in Washington DC, US.
- Its aim was to secure global financial stability by involving middle-income countries.
- Its prominent members are: Australia, Brazil, China, France, Germany, India, Japan, Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, and the EU.
- Spain is invited as a permanent guest.
Presidency of G20
- The presidency of the G20 rotates every year among members.
- The country holding the presidency, together with the previous and next presidency-holder, forms the ‘Troika’ to ensure continuity of the G20 agenda.
- During India’s presidency, India, Indonesia and Brazil will form the troika.
- This would be the first time when the troika would consist of three developing countries and emerging economies.
How does the G20 work?
- The G20 has no permanent secretariat.
- The agenda and work are coordinated by representatives of the G20 countries, known as ‘Sherpas’, who work together with the finance ministers and governors of the central banks.
- On the advice of the G7 Finance Ministers, the G20 Finance Ministers and Central Bank Governors began holding meetings to discuss the response to the global financial crisis that occurred.
- Since 1999, an annual meeting of finance ministers has taken place.
Economic significance of G20
- G20 is the premier forum for international economic cooperation representing around-
- 85 per cent of the global GDP,
- 75 per cent of the global trade, and
- Two-thirds of the world population
Significance of the G20 logo
- The logo bears a lotus and the message of ‘Vasudhaiva Kutumbakam — One Earth, One Family, One Future’.
- The lotus flower symbolises our Puranic heritage, our aastha (belief) and boddhikta (intellectualism).