G20 : Economic Cooperation ahead

G20 : Economic Cooperation ahead

Development led by corporates, not women

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20

Mains level: Women led development

G-20 Summit | New Delhi declaration accepts disproportionate impact of  climate change on women - The Hindu

Central idea 

The article critiques the G20 Summit’s Declaration on women’s empowerment, highlighting past implementation challenges and questioning the clarity of “women-led development.” It emphasizes the discrepancy between rhetoric and actions, especially regarding declining budget allocations for women’s development. The central theme revolves around the need for a reevaluation of women-led development strategies to address persistent inequalities effectively.

Key Highlights:

  • The G20 Summit’s Declaration on the empowerment of women is acknowledged, but past working groups and sustainable development goals have seen limited implementation.
  • The term “women-led development” in the Declaration lacks clarity, and the article questions its parameters and implications for the existing development models.
  • The G20 Declaration reaffirms the role of private enterprise in driving economic growth, raising concerns about the compatibility of women-led development with the prevailing macroeconomic model.

Key Challenges:

  • The article highlights the persistent discrimination against women and girls globally, emphasizing the need for more effective measures to achieve Sustainable Development Goals.
  • Women-led development schemes, as mentioned in government bulletins, are criticized for masking the reduction in government investment in projects benefiting women’s development.
  • The Gender Budget, intended to prioritize women’s development, has shown a decline in total expenditure, raising concerns about the commitment to women-led development.

Key Terms/Phrases:

  • Women-led development
  • Sustainable Development Goals (SDGs)
  • Trickle-down theory
  • G20 Summit Declaration
  • Gender Budget
  • Private enterprise
  • Corporate-led development

Key Quotes for value addition:

  • “At the midway point to 2030, the global progress on SDGs is off-track with only 12% of the targets on track.”
  • “We encourage women-led development and remain committed to enhancing women’s full, equal, effective, and meaningful participation…”

Key Statements:

  • The article questions the lack of clarity in the term “women-led development” and its compatibility with existing development models.
  • Concerns are raised about the reduction in the Gender Budget and the inadequate allocation for wholly women-specific schemes.

Key Examples and References:

  • The article cites the decline in women’s share in regular waged work in India according to the Periodic Labour Force Survey (PLFS).
  • Specific government schemes and budgetary allocations are referenced to illustrate the disparities in women-led development.

Key Facts/Data:

  • The total Gender Budget for 2023-2024 was reduced from 5.2% of the total expenditure the previous year to 5%.
  • The share of women in regular waged work in India fell from 21.9% in 2018-2019 to 15.9% in 2022-2023.

Critical Analysis:

  • The article critically examines the discrepancies between rhetoric and action in women-led development, highlighting concerns about declining budget allocations and the lack of clarity in the proposed development model.

Way Forward:

  • The need for a reevaluation of women-led development strategies is emphasized, urging policymakers to prioritize economic independence for women and address the disparities in budgetary allocations.

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G20 : Economic Cooperation ahead

From ‘rule taker’ to ‘rule shaper’, the evolution of India in international negotiations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Prime Minister Modi's Panchamrit Action Plan

Mains level: trade negotiations

The 'Tech' Moment in India's Foreign Policy – South Asian Voices

Central idea 

The article underscores the overlooked role of foreign policy and diplomacy in contemporary discussions on India’s trade policy. It highlights the evolving diplomatic strategies and negotiations, particularly in the context of the multilateral trading system, emphasizing India’s transformation from a “rule-taker” to a “rule-shaper” on the global stage. The successful handling of the G20 Summit is presented as evidence of India’s progressing transition from a balancing power to a leading power.

Key Highlights:

  • India’s Rising Prominence: The article highlights India’s growing influence on the global stage, especially evident at COP26 with Prime Minister Modi’s strategic initiatives for low-carbon development.
  • Neglected Discourse: The author emphasizes the overlooked aspect of foreign policy and diplomacy in contemporary discussions on trade policy in India.

Key Challenges:

  • Trade Policy Oversight: The neglect of understanding the multilateral trading system’s workings despite India’s significant trade-to-GDP ratio.
  • Complex Negotiations: The challenge of formulating a negotiating position that aligns with the multitude of stakeholders in India.

Key Terms/Phrases:

  • Integrated Framework: The theoretical model introduced by Ambassador Mohan Kumar to analyze India’s negotiating briefs and diplomatic motivations.
  • GATT (General Agreement on Tariffs and Trade): A reference to the foundational international treaty for trade negotiation and the precursor to the World Trade Organization (WTO).
  • Plurilateral Negotiations: Negotiations involving a subgroup of WTO members, not necessarily the entire membership.

Key Quotes/Anecdotes:

  • “Poverty Veto”: Exploring the term used to describe India’s defensive posturing in international trade negotiations to protect domestic interests.
  • India’s Diplomatic Deftness: Showcasing India’s diplomatic skills in navigating the Ukraine-Russia conflict and evacuating its citizens.

Key Statements:

  • India’s Diplomatic Evolution: Describing India’s shift from being a “rule-taker” to a “rule-shaper” in international negotiations, emphasizing its growing role in shaping global rules.
  • G20 Summit Success: The G20 Summit’s success as proof of India’s transformation from a balancing power to a leading power.

Key Examples and References:

  • COP26 Initiatives: Prime Minister Modi’s Panchamrit Action Plan and long-term strategy at COP26 as examples of India’s innovative approaches to global challenges.
  • Ukraine-Russia Conflict: India’s strategic independence and moral position during the conflict, showcasing diplomatic effectiveness.

Key Facts/Data:

  • Trade-to-GDP Ratio: India’s overall trade-to-GDP ratio at 50% in the last decade, underscoring the significance of trade in the economy.

Critical Analysis:

  • Neglected Aspect: Criticizing the lack of attention given to foreign policy and diplomacy in discussions related to trade policy in India.
  • Balancing Act: Examining how India balances geopolitical pressures and domestic constraints to advance its national interests in international trade negotiations.

Way Forward:

  • Reviving Multilateral Trading System: The anticipation of a revival of the multilateral trading system, anchored in the WTO, to pursue a development-based trade agenda.
  • Policy Adjustments: Considering a more circumspect approach to trade negotiations to balance the risks and rewards, especially in the context of preferential trading systems.

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G20 : Economic Cooperation ahead

Narendra Modi writes: India’s G20 presidency, for the world

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20

Mains level: momentum of inclusivity and global collaboration

Narendra Modi writes: India's G20 presidency, for the world | The Indian  Express

Note for students: The writer is Prime Minister of India hence there is high possibility UPSC may use this for prelims, mains, interview and essay be aware and alert for these kind of highly valuable articles.

Central idea

India’s G20 presidency prioritized inclusivity, sustainable development, and climate action, offering an alternative to GDP-centric progress. The emphasis on the Global South’s concerns and achievements in digital infrastructure collaboration marked a departure from the status quo.

Key Highlights:

  • India’s G20 presidency focused on inclusive, ambitious, action-oriented, and decisive strategies.
  • Inclusivity was a central theme, integrating the African Union and emphasizing the Global South’s concerns.
  • India introduced the Digital Public Infrastructure (DPI) and a Green Development Pact for sustainable progress.
  • The G20 2023 Action Plan targeted SDGs, with a special emphasis on health, education, gender equality, and environmental sustainability.
  • Commitment to climate justice, equity, and significant financial support for developing countries were key features.

Key Challenges:

  • Addressing conflicts, competition, and declining multilateralism.
  • Balancing development cooperation amid geopolitical tensions.
  • Navigating the transition from GDP-centric to human-centric progress.
  • Mobilizing substantial resources for climate and development financing.

Key Terms:

  • Vasudhaiva Kutumbakam
  • New Delhi Leaders’ Declaration (NDLD)
  • Sustainable Development Goals (SDGs)
  • Digital Public Infrastructure (DPI)
  • Green Development Pact
  • Lifestyles for Sustainable Development (LiFE)
  • Nationally Determined Contributions (NDCs)
  • Multilateral Development Banks

Key Phrases:

  • “One Earth, One Family, One Future”
  • “Voice of the Global South Summit”
  • “People’s Presidency”
  • “Jan Bhagidari” (People’s participation)
  • “Digital Public Infrastructure Repository”
  • “Tripling of global renewable energy capacity by 2030”
  • “Climate justice and equity”
  • “Women’s Reservation Bill 2023”
Key Quotes

 

For value addition of mains answer they may come as essay topics as they are written by pm of our country. UPSC is very keen on selecting such type of content be focused and revise this article multiple times.

 

“The interests of the few had to give way to the aspirations of the many.”

“For the first time, there was a recognition of the quantum jump needed in the magnitude of development financing.”

“It revitalised multilateralism, amplified the voice of the Global South, championed development, and fought for the empowerment of women everywhere.”

 

 

 

Key Statements:

  • “Inclusivity has been at the heart of our presidency.”
  • “India sought to offer the world an alternative to the status quo, a shift from a GDP-centric to human-centric progress.”
  • “India’s Women’s Reservation Bill 2023 epitomizes our commitment to women-led development.”
  • “India’s G20 achieved 87 outcomes and 118 adopted documents, a marked rise from the past.”

Key Examples and References:

  • The inclusion of the African Union in the G20.
  • ‘Voice of the Global South Summit.’
  • Digital innovations like Aadhaar, UPI, and Digilocker.
  • G20’s emphasis on climate-conscious consumption and planet-friendly production.
  • India’s leading role in UN reforms.

Key Facts:

  • G20 achieved 87 outcomes and 118 adopted documents during India’s presidency.
  • The G20 Declaration calls for tripling global renewable energy capacity by 2030.
  • India’s Women’s Reservation Bill 2023 reserves one-third of parliamentary and state legislative assembly seats for women.
  • Developing countries require $5.9 trillion to fulfill their NDCs by 2030.

Key Data:

  • The G20 reached 1.4 billion citizens through “Jan Bhagidari” events.

Critical Analysis:

India’s G20 presidency successfully navigated challenges, emphasizing inclusivity, sustainable development, and climate action. The presidency revitalized multilateralism and amplified the voice of the Global South, marking a significant shift in the global narrative.

Way Forward:

  • Sustaining the momentum of inclusivity and global collaboration.
  • Implementing the G20 2023 Action Plan for accelerated progress on SDGs.
  • Continued advocacy for climate justice, equity, and financial support for developing nations.
  • Strengthening the role of Multilateral Development Banks for effective development financing.
  • Advancing UN reforms for a more equitable global order.

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G20 : Economic Cooperation ahead

P20: A parliamentary dimension to global governance

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-20, P-20 and key outcomes

Mains level: India's role in shaping international economic and environmental agendas, G20

What’s the news?

  • India’s leadership role in the G20 reflects its growing importance and influence in global politics.

Central idea

  • India celebrated its 74th Republic Day earlier this year, commemorating the adoption of the Constitution of India on January 26, 1950, marking the nation’s transition to a sovereign republic. This year, India’s Republic Day holds special significance as the country assumes the presidency of the G20, an influential forum comprising the world’s leading advanced and emerging economies.

India’s Democratic Success Story

  • India’s journey as the world’s largest inclusive democracy, characterized by its multi-dimensional diversity and pluralistic society, is both fascinating and inspiring.
  • Despite formidable challenges in the form of illiteracy and widespread poverty, India’s visionary Constitution makers established a multi-party democratic political system immediately after gaining independence.
  • Overcoming these hurdles, India has consistently conducted free and fair elections through its independent constitutional body, the Election Commission of India, solidifying its democratic credentials.
  • In a world where many post-colonial nations grappled with political turbulence, India’s commitment to electoral democracy stood as a beacon of hope.

Socio-Economic Development and Increased Political Participation

  • Socio-Economic Progress:
  • India’s ascent as a democratic republic has been accompanied by substantial socio-economic advancements.
  • Over the decades, the nation has made significant strides in alleviating poverty, expanding access to education, improving healthcare, and developing infrastructure.
  • These achievements have not only improved the standard of living but also fostered a sense of inclusion among its diverse population.
  • Youth Empowerment:
  • India’s burgeoning youth population has emerged as a potent force in shaping the country’s political landscape.
  • Young people are increasingly active in civic participation, advocating for change, and driving social and political discourse.
  • This dynamism reflects a commitment to democratic principles and a desire to influence the nation’s direction.
  • Rising voter turnout:
  • India’s commitment to democratic values is vividly demonstrated through the consistently rising voter turnout in elections.
  • Citizens across the country recognize the power of their votes in shaping the destiny of the nation.
  • This surge in political engagement underlines the vibrancy of India’s democracy.
  • Empowerment of women:
  • A heartening trend in India’s democratic journey has been the growing participation of women in both electoral processes and political leadership.
  • The increased representation of women at various levels of governance not only strengthens democracy but also promotes gender equality and diversity in decision-making.
  • Diverse Political Landscape:
  • India’s democracy has evolved into a dynamic and diverse political arena. A multitude of political parties, each representing unique constituencies and interests, actively participate in the democratic process.
  • This pluralism underscores India’s commitment to accommodating a wide range of perspectives and voices.

India’s G20 Presidency

  • Global Significance: The G20, comprising the world’s most advanced and emerging economies, is a forum of immense global significance. India’s presidency in this forum signifies its ascent as a major player in international affairs.
  • Showcasing India: Hosting G20 meetings in India provided a unique opportunity to showcase the nation’s diversity, culture, democracy, development, and technological prowess to the global community. It allowed India to present its story as a positive model of pluralistic democracy and development, inspiring other nations, particularly in the Global South.
  • Covid Pandemic Response: India’s handling of the COVID-19 pandemic further solidified its reputation as a responsible global leader. Its ability to manage the crisis, provide vaccines to other nations, and contribute to global efforts for containment and recovery demonstrated its commitment to international cooperation.
  • Bilateral and Multilateral Engagement: During its G20 presidency, India engaged in important bilateral and multilateral discussions, fostering partnerships and addressing global challenges. Key agreements, such as the India-Middle East-Europe Economic Corridor Agreement and the Global Biofuels Alliance, highlighted India’s role in shaping international economic and environmental agendas.

Outcomes of the G20 Summit

  • Economic Advancements: The G20 New Delhi Summit also served as a platform to showcase India’s contemporary technological advancements and its rich heritage, culture, and traditions. It energized the international economy, promoted tourism, enhanced food security through millet production, and deepened commitments to sustainable biofuels.
  • Food Security: The summit emphasized stronger food security through millet production and consumption. This initiative aligns with global efforts to enhance food sustainability and ensure a stable food supply for growing populations.
  • Commitment to Biofuels: India’s leadership in the G20 Summit deepened its commitment to sustainable biofuels. This focus on clean energy sources aligns with global efforts to combat climate change and reduce carbon emissions.
  • Key Agreements: Notably, the G20 Summit witnessed the conclusion of significant agreements, including the India-Middle East-Europe Economic Corridor Agreement and the Global Biofuels Alliance. These agreements are of considerable significance in shaping international economic and environmental agendas.

P20 (Parliamentary 20)

  • The P20 (Parliamentary 20), which has evolved significantly since its inception in Canada in 2010, exemplifies the importance of parliamentary participation in shaping the global agenda.
  • It has garnered social acceptance and legal tenability in participating countries, emphasizing the importance of involving elected representatives in international decision-making.

The Role of Parliament in Global Governance

  • Supreme Law-Making Body: Parliament is the supreme law-making body in any democratic nation, representing the will and aspirations of its citizens. In the context of global governance, the role of parliament is essential, as it ensures that international agreements and commitments align with the interests and values of the people it represents.
  • Democratic Accountability: Parliament’s participation in global governance adds a layer of democratic accountability to international agreements and treaties. When elected representatives endorse these agreements, they become socially acceptable and legally binding within their respective countries.
  • Bilateral and Multilateral Engagement: Parliaments also engage in bilateral and multilateral discussions, further fostering partnerships and addressing global challenges. Their involvement helps shape the direction of international cooperation and ensures that agreements benefit their respective nations.

P20 Summit Agenda

  • The upcoming P20 Summit, hosted by the Indian Parliament, exemplifies the parliamentary dimension’s significance in global governance.
  • The summit’s four high-level sessions, focusing on themes such as Sustainable Development Goals, Sustainable Energy Transition, Gender Equality, and Public Digital Platforms, will facilitate wide-ranging discussions among G20 members and guest countries on how parliaments can effectively advance global objectives.

What else: Emphasizing Environmental Responsibility

  • The LiFE is Beautiful initiative, recognizing environmentally conscious communities as Pro-Planet People” (P-3), demonstrates India’s commitment to sustainability and responsible living.

Conclusion

  • This year’s P20 Summit theme, One Earth, One Family, One Future, reflects the spirit of unity and shared responsibility. India’s journey from Republic Day to G20 leadership is a testament to its democratic strength and its increasingly influential role in shaping the global future.

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G20 : Economic Cooperation ahead

The ‘mantras’ that powered success at the G-20 summit

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-20, key outcomes

Mains level: G-20 summit, India's successful leadership, factors behind and significant outcomes

summit

What’s the news?

  • India Shines at the G-20 Summit, Champions Multilateralism and Multipolarity

Central idea

  • The recent G-20 summit held in India, especially the New Delhi Leaders’ Declaration (NDLD), has reaffirmed the vitality of multilateralism on the global stage. Despite challenges, India’s diplomatic efforts, rooted in its principles of multilateralism, multipolarity, and the middle way, bore fruit at the summit.

In a world that often resembles a dysfunctional global family, India’s diplomatic approach at the G-20 serves as a beacon of hope for effective global governance.” UN Secretary-General António Guterres

Multilateralism: The Key Driver

  • Concessions for Consensus:
  • The commitment to uphold multilateralism was pivotal in achieving consensus at the G-20. The Western bloc, including G-7 countries, the European Union, and allies like Australia and South Korea, made significant concessions by agreeing to omit direct references to Russia in paragraphs concerning the Ukraine conflict.
  • This collaborative approach was driven by the shared goal of preserving the G-20 as a crucial platform for global cooperation.
  • Preservation of the G-20:
  • The absence of a joint declaration would have cast doubt on the G-20’s future, potentially leading to fragmentation into distinct blocs, including the G-7 and BRICS.
  • The G-7 and BRICS had already expressed their positions on the Ukraine conflict. Thus, achieving consensus at the G-20 reinforced its relevance as a forum encompassing diverse perspectives.
  • Role of Developing Nations:
  • The Troika-Plus, consisting of Indonesia, India, Brazil, and South Africa, all of which are hosting or future hosts of the G-20, played a crucial role in formulating a winning approach to the Ukraine issue.
  • This highlighted the multilateral heft of emerging economies and their contribution to consensus-building.

India’s Support for a Multipolar World

  • India’s Advocacy: India’s consistent support for a multipolar world order stood out at the G-20. In a world where the U.S. pursued unipolarity, China aimed for bipolarity, and India championed multipolarity, India’s stance gained prominence.
  • Global Shifts:
  • The recent history of international relations saw the U.S. temporarily withdraw from various multilateral agreements and organizations during the Trump era, causing concern about a potential decline in U.S. global leadership.
  • China’s rapid ascent brought both influence and unease due to its actions during the COVID-19 pandemic and aggressive behavior toward neighboring countries, including India.
  • The Rise of the Global South:
  • The Global South, comprising over 125 countries, emerged as a potent voice in global affairs. Despite disparities in wealth, the Global South’s collective influence reshaped global priorities in areas such as development, climate change, health, and digital access.
  • India’s active involvement with the Global South, including its membership in the African Union, bolstered its position at the G-20.

The Middle Way: A Key to India’s Diplomatic Success

  • India’s Tradition:
  • India’s diplomatic success at the G-20 can be attributed to its long-standing tradition of eschewing alliances and pursuing a middle path in global disputes.
  • This approach sometimes requires making compromises, such as maintaining ties with Russia and not inviting Ukraine’s president to address the G-20.
  • However, it positions India as a bridge between the Global South and North, East and West.
  • A Balancing Act: In a polarized world, the role of bridging divides is indispensable. India’s ability to balance between diverse interests makes it a valuable mediator and consensus-builder on the global stage.

Conclusion

  • The G-20 summit in India exemplified the enduring importance of multilateralism, multipolarity, and the middle way in diplomacy. India’s success in fostering consensus and maintaining the unity of the G-20 underscores the significance of these principles in addressing global challenges.

Also read:

India’s G20 Presidency: Embracing Inclusivity, Ambition, and Action

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G20 : Economic Cooperation ahead

African Union and the G20: Africa on the high table

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20 and global missions

Mains level: Benefits of the AU's inclusion in the G20

What’s the news?

  • India’s 18th G20 Summit, held under the dynamic leadership of Prime Minister Narendra Modi, made history by admitting the African Union (AU) into the G20.

Central idea

  • The addition of the African Union as the 21st member brings substantial weight to the G20. It significantly enhances the G20’s global economic and financial governance. With Africa’s representation, the G20 becomes a more inclusive and influential body, covering a vast portion of the world’s population, GDP, and trade.

Africa’s Stake and Strength

  • Stake in G20 Inclusion:
  • Representation: Africa’s inclusion in the G20 through the African Union (AU) provides the continent with a significant voice and presence in global economic and financial governance.
  • Global Economic Impact: Africa’s inclusion in the G20 is notable because it represents the continent’s growing economic influence. Africa possesses substantial resources, including agricultural land, minerals, metals (including rare earth minerals), and a young workforce.
  • Developmental Challenges: Africa faces numerous developmental challenges, including widespread poverty, conflict, political instability, climate stress, environmental degradation, and socioeconomic devastation from various crises. These challenges underscore the importance of Africa’s participation in the G20 for addressing global public goods (GPGs) and development issues.
  • Strengths Leveraged in the G20:
  • Resource Abundance: Africa’s wealth of natural resources positions it as a significant contributor to G20 discussions on resource utilization, sustainable development, and global economic growth.
  • Economic Integration: Africa’s ongoing economic and political integration, including initiatives like the African Free Trade Area and “Agenda 2063: The Africa We Want,” demonstrate its commitment to becoming an economic powerhouse.
  • Demographic Advantage: Africa’s large and youthful population presents opportunities for future global economic growth and trade partnerships.
  • Alignment with Global Goals: Africa’s role in achieving global goals, particularly the Sustainable Development Goals (SDGs), underscores its importance within the G20 for coordinated efforts to meet these goals.

Benefits of the AU’s inclusion in the G20

  • Enhanced Representation and Credibility: The AU’s inclusion makes the G20 more representative and enhances its credibility as a global decision-making body.
  • Effective Policy Implementation: AU’s participation is expected to improve the implementation of G20 policies, programs, measures, principles, and initiatives.
  • African Voice and Influence: The AU’s presence provides Africa with a voice, participation, and leadership role at the global high table, enabling African countries to influence the global agenda and priorities.
  • Cooperation and Leveraging Resources: The AU’s inclusion fosters cooperation within the G20 and allows for the mutual leveraging of Africa’s abundant resources for the benefit of all member nations.

Strategic Benefits for India

  • Deepened Partnerships: India can strengthen its strategic, political, economic, technological, trade, and people-to-people partnerships with African nations. AU’s inclusion provides India with a unique opportunity to foster deeper relationships across various sectors.
  • Regional and Sub-Regional Engagement: India can engage with African countries on both regional and sub-regional levels. This enables India to extend its influence and cooperation beyond individual nations and into larger African regions.
  • Collaboration with Like-Minded Partners: India can collaborate with like-minded partners from the North, such as Japan and the United States, to further its interests in Africa. These partnerships can lead to joint initiatives and investments in the continent.
  • Diplomatic Trust: Prime Minister Modi’s successful efforts to secure the AU’s inclusion in the G20 have earned the trust and gratitude of African nations. This trust can translate into diplomatic goodwill and cooperation on various global issues.
  • A Counterbalance: The AU’s presence in the G20 can serve as a counterbalance to China’s efforts to influence African countries, especially in matters related to UN Security Council reform. India’s alignment with African interests can bolster its position.
  • Economic Opportunities: Africa’s economic growth and integration present opportunities for Indian businesses to invest and trade in the region. India can leverage its participation in the G20 to facilitate economic engagement with African partners.
  • Global Influence: By actively engaging with African nations within the G20, India can enhance its global influence and stature as a country that promotes inclusive development and cooperation.

G20’s global mission

  • Conclusion Global Economic and Financial System: The G20 plays a pivotal role in shaping the global economic, financial, and monetary system. It strives to establish a framework that is fair and adheres to established rules and principles.
  • Providing Global Public Goods (GPGs): The G20 is committed to providing global public goods, which can encompass shared resources, technologies, and knowledge that benefit all nations. These may include international tax packages and initiatives in areas like digital health.
  • Addressing Global Public Bads (GPBs): Beyond providing public goods, the G20 addresses global public bads—issues and threats that transcend national borders. This involves taking concerted actions against challenges such as money laundering, counterterrorism financing, and other transnational risks.
  • Supporting Developing Countries:
  • A significant aspect of the G20’s mission is to create a level playing field for developing countries. It involves taking affirmative measures to assist those nations facing the most significant challenges.
  • Key areas of focus include reforming Multilateral Development Banks (MDBs), providing stimulus for achieving the Sustainable Development Goals (SDGs), financing initiatives related to green development and climate transition, issuing Special Drawing Rights (SDRs) during crises, and addressing food security and supply chain disruptions.

Conclusion

  • Admitting the African Union into the G20 during India’s presidency is a historic achievement that enhances the G20’s credibility and inclusivity. AU’s inclusion adds a valuable perspective to the G20’s discussions and decisions, making it a more powerful and representative body on the world stage.

 

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G20 : Economic Cooperation ahead

Analysing where India stands in the G20

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20

Mains level: India in the G20: Analysis

What’s the news?

  • The 18th G20 Summit, hosted by India in New Delhi from September 9 to 10, revolved around the theme One Earth, One Family, One Future. This global forum convened to deliberate on crucial issues encompassing food security, climate change, energy, development, healthcare, and digitalization.

Central idea

  • The G20 Summit marked a successful conclusion as India transferred the G20 Presidency to Brazil. India’s performance across various socioeconomic metrics within the G20 context reveals a mixed picture of progress and challenges.

GDP per capita comparison (1970–2022)

  • 1970: India’s GDP per capita was $111.97, ranking 18th out of 19 regions analyzed. India had one of the lowest GDP per capita figures among the group.
  • 2022: By 2022, India’s GDP per capita had risen significantly to $2,388.62. However, despite this growth, India had moved to the last position among the 19 regions, indicating that other regions had experienced more substantial economic growth during this period.

Human Development Index (HDI) comparison (1990–2021)

  • 1990: In 1990, India’s HDI stood at 0.43, indicating a relatively low level of human development. At that time, India ranked towards the lower end of the list among the 19 countries and regions analyzed.
  • 2021: By 2021, India’s HDI had improved to 0.63, signifying significant progress in terms of human development over the decades. However, despite this improvement, India still ranked at the bottom of the list among the 19 regions, highlighting the need for further advancements in various aspects of human development, including life expectancy, education, and living standards.

Health Metrics Comparison

  • Life Expectancy (1990-2021):
    • In 1990, India had an average life expectancy of 45.22 years.
    • China, at the same time, had a lower average life expectancy of 33.27 years.
    • By 2021, India’s life expectancy had increased to 67.24 years.
    • Despite this improvement, India’s ranking remained the same, and China surpassed India in terms of life expectancy.
  • Infant Mortality Rate (1990-2021):
    • In 1990, India had an infant mortality rate of 88.8 per 1,000 live births, ranking it at the bottom of the 20 regions analyzed.
    • By 2021, India’s infant mortality rate had improved to 25.5 per 1,000 live births.
    • India’s ranking improved to 19th place, just ahead of South Africa (26.4), but it still lags behind many other regions in terms of infant mortality.

Labor Force Participation Rate (LFPR) Comparison (1990-2021-22)

  • 1990:
    • In 1990, India’s LFPR for individuals above 15 years of age was 54.2%.
    • This LFPR ranking placed India at the 18th position among the 20 regions analyzed.
    • India was ahead of Italy (49.7%) and Saudi Arabia (53.3%) in LFPR.
  • 2021-22:
    • By 2021-22, India’s LFPR had decreased to 49.5%.
    • This decline resulted in a slip in India’s ranking to 19th place.
    • India was now only ahead of Italy (49.4%) among the 20 regions in terms of LFPR.

Women’s Representation in Parliament (1998-2022)

  • 1998:
    • In 1998, women constituted 8.1% of the Indian Parliament.
    • At that time, India ranked 15th out of the 19 regions analyzed in terms of women’s representation in Parliament.
    • While there were women in leadership positions, India’s representation was relatively low compared to some other regions.
  • 2022:
    • By 2022, women’s representation in the Indian Parliament had nearly doubled to 14.9%.
    • However, despite this increase, India’s ranking had slipped to the 18th position among the 19 regions.
    • India was just ahead of Japan (9.9%) in terms of women’s representation in Parliament.

Environmental Progress

  • Carbon Emissions (1990 and 2020):
    • In 1990, India was the lowest emitter of CO2 among the 20 regions analyzed.
    • This demonstrated India’s relatively low carbon emissions at that time.
    • In 2020, India maintained its status as the lowest emitter of CO2 among the same regions, indicating a consistent trend of relatively low carbon emissions.
  • Renewable Energy Adoption (1990 and 2015):
    • In 1990, most G20 nations, excluding the U.S. and Mexico, generated less than 2% of their electricity from renewables.
    • By 2015, India had made some progress, with 5.36% of its electricity coming from renewable sources.
    • However, India’s ranking in this regard was 13th out of the 20 regions analyzed, suggesting relatively slow progress in adopting eco-friendly energy sources compared to some other G20 nations.

Conclusion

  • As India hands over the G20 Presidency to Brazil, there is an opportunity for the nation to build on its successes and address areas that require further attention to achieve a more balanced and equitable socioeconomic landscape

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G20 : Economic Cooperation ahead

India-Middle East-Europe Economic Corridor

Note4Students

From UPSC perspective, the following things are important :

Prelims level: India-Middle East-Europe Economic Corridor

Mains level: Not Much

economic corridor

Central Idea

  • PM’s recent announcement at the G20 Leaders’ Summit regarding the India-Middle East-Europe Economic Corridor signifies an ambitious project aimed at enhancing physical and digital connectivity across a vast expanse of the Eurasian subcontinent.

India-Middle East-Europe Economic Corridor

  • The India-Middle East-Europe Economic Corridor aims to establish connectivity across India, West Asia, and Europe, leveraging railway networks and shipping routes.
  • The project was jointly unveiled by PM Modi, US President Biden, Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud, and European Commission President Ursula von der Leyen during the G20 Summit in New Delhi.

Key Highlights of the project

  • Scope and Ideology: This initiative, championed by the US and India, encompasses connectivity and infrastructure spanning India, Saudi Arabia, the UAE, Jordan, Israel, and the European Union. It is hailed as a sustainable alternative to existing global connectivity initiatives.
  • Extension to PGII: Additionally, it is part of the broader Partnership for Global Infrastructure Investment (PGII), introduced by G7 countries to provide a sustainable alternative to BRI and address global infrastructure needs.
  • Congestion Mitigation: The corridor may potentially bypass the congested Suez Canal, offering a more efficient route for cargo ships.
  • Trade and Economic Integration: The Memorandum of Understanding (MoU) signed by India, the US, UAE, Saudi Arabia, France, Germany, Italy, and the European Union Commission underscores the project’s commitment to enhancing connectivity, logistics, clean energy production, and economic cooperation.
  • Historical Significance: European Commission chief Ursula von der Leyen described the corridor as “historic” and expressed enthusiasm about its potential.

Need for such project

  • Transformative Infrastructure: The project envisions a railway line across the Arabian Peninsula, with rail and shipping connectivity between India and Europe. Future expansions could include energy pipelines and optical fiber links.
  • Geopolitical Shifts: This initiative reflects emerging geopolitical trends, including India-US collaboration in the Middle East, breaking Pakistan’s veto, and evolving relations with Iran.
  • Deepening Arabian Engagement: The corridor provides an opportunity to strengthen India’s strategic ties with the Arabian Peninsula, notably with the United Arab Emirates and Saudi Arabia.
  • Historical Perspective: India’s historical role as a connector between Arabia and Europe is revitalized through this project.
  • Promoting Intra-regional Connectivity: The corridor aims to reduce tensions in the Arabian peninsula by fostering intra-regional connectivity, contributing to the concept of “Infrastructure for peace.”
  • Alternative to BRI: Positioned as an alternative to China’s BRI, the corridor’s success will depend on implementation speed and sustainability, both financial and ecological.
  • European Engagement: European Union’s involvement in the project makes it a major stakeholder, enhancing India’s integration with Arabia and Europe.
  • Trans-African Corridor: India’s growing engagement with Africa aligns with US and EU plans to create a Trans-African corridor, opening avenues for future collaboration.

Challenges and Uncertainties

  • Official timelines for project completion and details regarding funding remain undisclosed.
  • Clarity on the project’s alignment and the use of existing railway and port infrastructure in West Asia is awaited.

Global Implications

  • The initiative aligns with US-led efforts to scale the Partnership for Global Infrastructure Investment (PGII) and address infrastructure financing needs in low- and middle-income countries.
  • The project presents an alternative to China’s Belt and Road Initiative and could significantly strengthen connectivity between India and the Middle East.

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G20 : Economic Cooperation ahead

G-20 Summit clinches New Delhi Declaration

Note4Students

From UPSC perspective, the following things are important :

Prelims level: New Delhi Declaration

Mains level: Not Much

new delhi declaration

Central Idea

  • At the G20 Summit in New Delhi, leaders from member countries reached a consensus and adopted the New Delhi Declaration.
  • This declaration outlines significant commitments and agreements on various global issues.

Here are the key points from the G20 New Delhi Leaders’ Declaration:

[1] War in Ukraine

  • Peaceful Resolution: The G20 countries emphasize the importance of peace and call on all states to uphold the principles of international law, including territorial integrity and sovereignty.
  • Humanitarian Concerns: The declaration expresses deep concern about the human suffering and adverse impacts of wars and conflicts worldwide, specifically addressing the war in Ukraine.
  • UN Charter Principles: It emphasizes that all states must act in accordance with the Purposes and Principles of the UN Charter, refraining from the threat or use of force to seek territorial acquisition.
  • Nuclear Disarmament: The use or threat of use of nuclear weapons is deemed inadmissible.

[2] Countering Terrorism and Money Laundering

  • Condemnation of Terrorism: The G20 condemns terrorism in all its forms, including those rooted in xenophobia, racism, and intolerance or carried out in the name of religion.
  • Holistic Approach: A holistic approach based on international law is advocated to effectively counter terrorism, with an emphasis on strengthening international cooperation to deny terrorist groups safe haven, freedom of operations, and financial support.
  • Illicit Trafficking: Concerns about illicit trafficking and diversion of small arms and light weapons are addressed, with an emphasis on international cooperation among states to combat these phenomena.
  • Financial Action Task Force (FATF): The G20 leaders commit to supporting the resource needs of the FATF and FATF Style Regional Bodies to combat money laundering and terrorist financing.

[3] Economy & Climate

  • Sustainable Growth: G20 leaders call for strong, sustainable, and inclusive growth in response to the uneven recovery from the pandemic.
  • Climate Action: Trillions of dollars will be required for countries to meet their climate goals and invest in clean energy technologies.
  • Reforming Financial Institutions: Reforms of international financial institutions are urged, along with efforts to manage debt vulnerabilities in low and middle-income countries.
  • Crypto Asset Taxation: The exchange of tax-relevant information on crypto assets is set to begin by 2027.
  • Energy Transition: The declaration calls for accelerated efforts to phase down unabated coal power and eliminate inefficient fossil fuel subsidies.
  • Financial Stability: Emphasis is placed on the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities, and maintain macroeconomic and financial stability.

[4] Global Growth

  • Policy Coordination: The G20 leaders reiterate the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities, and maintain macroeconomic and financial stability.
  • Central Banks Commitment: They also stress that central banks remain committed to achieving price stability in line with their respective mandates.
  • Financial Stability Board (FSB): Initiatives by the FSB, Standard Setting Bodies (SSBs), and jurisdictions to examine lessons from recent banking turbulence are welcomed.

[5] Multilateral Development Banks

  • Enhancing MDBs: G20 leaders emphasize the importance of delivering better, bigger, and more effective multilateral development banks (MDBs).
  • Leveraging Private Capital: Financial institutions are encouraged to leverage private capital through innovative financing models and partnerships for maximum development impact.
  • Capital Adequacy Frameworks (CAFs): The roadmap for implementing the recommendations of the G20 Independent Review of MDBs CAFs is endorsed.

[6] Cross-border Payments

  • Payment Improvements: The G20 reaffirms its commitment to achieving global targets for faster, cheaper, and more transparent cross-border payments by 2027.
  • CBDC Discussion: Discussions on the potential macro-financial implications of Central Bank Digital Currencies (CBDCs) are welcomed, especially concerning cross-border payments and the international monetary and financial system.

[7] Education

  • Digital Education: The G20 recognizes the importance of investing in human capital development and supporting digital technologies to bridge educational divides.
  • Scientific Collaboration: The promotion of open, equitable, and secure scientific collaboration and mobility of students, scholars, researchers, and scientists is encouraged.
  • Inclusive Education: Emphasis is placed on inclusive, equitable, high-quality education and skills training, with foundational learning as a primary building block.

[8] Agriculture

  • Trade Facilitation: Rising commodity prices contributing to cost of living pressures are addressed.
  • Rules-Based Trade: The G20 leaders commit to facilitating open, fair, predictable, and rules-based trade in agriculture, food, and fertilizers, in line with relevant WTO rules.
  • Food Security: Support for developing countries’ efforts to address food security challenges is emphasized, aligning with the G20 Deccan High-Level Principles on Food Security and Nutrition 2023.

[9] Religion

  • Religious Tolerance: The G20 strongly condemns acts of religious hatred against individuals, religious symbols, and holy books.
  • Cultural Diversity: Emphasis is placed on promoting respect for religious and cultural diversity, dialogue, and tolerance.
  • Rights Interdependence: The interdependence of freedom of religion or belief, freedom of opinion or expression, peaceful assembly, and freedom of association is recognized as a means to combat intolerance and discrimination based on religion or belief.

[10] Corruption

  • Zero Tolerance: The G20 reaffirms its commitment to zero tolerance for corruption.
  • International Cooperation: Strengthening international cooperation and information sharing for combating corruption is urged.
  • Asset Recovery: The joint Declaration also called for strengthening asset recovery mechanisms for combating corruption.

Conclusion

  • In essence, the New Delhi Declaration serves as a testament to the collaborative efforts of G20 member countries in addressing global challenges and striving for a more prosperous, peaceful, and sustainable world.

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G20 : Economic Cooperation ahead

How India made G20 a forum for developing countries

Central idea

  • The G20 summit attracted attention as it started with a clear consensus to invite the African Union (AU) as its member. India’s initiative to include African Union in G20 was unanimously accepted. This was a unique reordering of the global high table.

India’s efforts for inclusion of the African Union

  • India’s big bet: Of the AU’s 55 members, 54 are in the United Nations. Only one African country, South Africa, has been an original member of the G20. No presidency has ever risked amending the membership for fear of competing rivalries.
  • Global platform for Africa: It has been India’s case that not only must the G20 reflect the priorities of the Global South but must also include those who are underrepresented, particularly from Africa.
  • Inviting major African countries: The AU has double the number of countries as the EU. The AU has been invited to G20 meetings, and some presidencies have held African outreach events in a manner of telling them what is good for them. It is India that has actually taken the initiative of talking with them rather than at them.

Importance of AU

  • Africa as the road to the global south: India aspires to bring the global south to the center of the G20 agenda. The elevation of the AU is courageous; no presidency has attempted to alter the composition for fear of claims from other regional organizations.
  • Branding itself using Africa: The AU fits in with the rebranding of the G20 that India undertook. This is India’s harambee (Swahili word for co-operation) factor—the spirit of developmental cooperation in action.
  • AU as a voiceless block: The AU is the largest of regional institutions and the one with a limited voice in most international fora, despite having 54 votes in the United Nations General Assembly.
  • Partner for India at the High Table: The prospects of Africa getting a permanent seat in the UN Security Council remain distant. What India has achieved, as always, is to provide Africa with a voice at the high table.

India’s engagement with Arican Nations

  • Nigeria: Inviting Nigeria, particularly at this stage, recognizes it as the largest economy in Africa and a consistent friend of India. This is Nigeria’s biggest outing since President Bola Ahmed Tinubu was elected. Nigeria was qualified to be in the BRICS but perhaps did not pursue it hard enough. Nigeria participated with great enthusiasm, with a number of ministers accompanying their president in advance of the G20 Summit.
  • Egypt: Egypt is another African powerhouse, representing North Africa. It is also the current chair of AU-NEPAD, which is a permanent invitee to the G20. Egypt is a recent strategic partner of India. India backed it to join the BRICs. Egypt brings balance to the presence of South Africa and Nigeria.
  • Mauritius: Mauritius is a close friend of India due to its PIO population, its regular engagement with India, and its strategic location in the Indian Ocean.
  • Comoros: Comoros is another Indian Ocean country representing Eastern Africa. With their participation, India ensured two of the four African countries in the Indian Ocean and most of the regions of Africa were represented, making the G20 better balanced.

Conclusion

  • The African Union is hot bed for great power rivalry between India and China. Even if India cannot match the deep pockets of Chinese investments in Africa, India has shown that it can deliver on the African Interest at global platform.

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G20 : Economic Cooperation ahead

African Union’s Entry into G-20: A Global Diplomatic Shift

Note4Students

From UPSC perspective, the following things are important :

Prelims level: African Union, G20

Mains level: Read the attached story

african union

Central Idea

  • Negotiators confirm the African Union (AU) will join the G-20, mirroring the European Union (EU) as a regional body within the group.
  • India views this development as a significant achievement for the Indian Presidency in advancing the Global South’s interests in the G-20.

Landmark Diplomatic Shift in G20

  • The AU’s potential entry into the G-20 signals a significant diplomatic shift, expanding the group’s representation and influence.
  • China and Russia, despite differences on other issues, back the AU’s membership, highlighting the broader global dynamics at play.

What is the African Union?

  • The African Union (AU) is an intergovernmental organization in Africa.
  • It was established in 2002 as a successor to the Organization of African Unity (OAU).
  • It consists of 55 member states in Africa.
  • Its primary objectives include promoting unity, cooperation, and development across the continent.
  • It aims to address social, political, and economic challenges faced by African nations.
  • It promotes peace, security, and stability in Africa.

History of India-Africa Relations

(1) Ancient Period:

  • Ancient trade links: Indian merchants traded with the African coast for valuable goods like palm oil, gold, spices, and ivory.
  • Maritime trade network: Trade routes expanded from Egypt to northern Somalia, Punt, Sudan, and Axum, enhancing economic and cultural ties.

(2) Medieval Era:

  • Indian presence in East Africa: Gujarati and Saurashtrian merchants played a significant role in Africa’s east coast trade, using Indian systems of weights, measures, and currency.
  • Development of internal links: Indian trade contributed to the development of internal connections within Africa, even before European involvement.

(3) Colonial Period:

  • Impact of European colonialism: Indian presence in Africa changed under European colonial powers.
  • Anti-apartheid struggle: Mahatma Gandhi’s involvement in the anti-apartheid movement in South Africa laid the foundation for India’s solidarity with Africa.
  • Advocacy against apartheid: India actively raised the issue of apartheid in international forums like the UN, NAM, and Commonwealth.

(4) Post-Colonial Period:

  • Continuation of Afro-Asian solidarity: India’s approach to Africa has been guided by the vision of commerce in ideas and services rather than raw materials.
  • Phases of engagement: From Nehru’s focus on Afro-Asian solidarity to phases of neglect and re-engagement, India’s Africa policy evolved.

Present Status of Ties

  • Institutionalization of relations: The India-Africa Forum Summit serves as the framework for India-Africa relations under South-South Cooperation.
  • Expanded diplomatic presence: India announced the opening of embassies in 18 African countries, strengthening diplomatic ties.
  • Economic engagement: Bilateral trade between India and Africa has grown significantly, with India becoming Africa’s third-largest trade partner.
  • Investment and development cooperation: Indian investments in Africa have increased, with the country being the seventh-largest investor in the region.
  • Lines of Credit (LoC): India’s concessional LoCs support development projects in Africa, with 182 projects sanctioned, amounting to US$10.5 billion.
  • Bilateral cooperation: Collaboration includes areas such as solar energy, climate change, information technology, maritime security, counter-terrorism, and military training.
  • Soft power projection: India’s ITEC program offers scholarships to African students, and the Indian diaspora contributes to cultural exchange.

Significance of Africa

(1) Geostrategic Importance:

  • Proximity to India: Africa’s Horn region is critical for India’s security due to emerging threats like radicalism, piracy, and organized crime.

(2) Economic Significance:

  • Diversifying energy sources: Africa can help India diversify its energy sources, aligning with the Integrated Energy Policy.
  • Rich resources: Africa possesses valuable minerals, metals, and abundant agricultural land, addressing India’s need for food security and resources.
  • Market and investment opportunities: Africa provides a space for Indian investments and trade expansion, fostering economic cooperation.

(3) Geopolitical Considerations:

  • Support for UNSC seat: Africa’s support is crucial for India’s aspiration to gain a permanent seat on the UN Security Council.
  • Projection of soft and hard power: India showcases its soft and hard power in Africa, contributing to its global influence.
  • Peacekeeping and capacity building: India actively participates in UN peacekeeping operations and supports capacity building in African countries, strengthening bilateral ties.

Various Challenges

  • Declining trade and investment: Bilateral trade and Indian investments in Africa have witnessed fluctuations, demanding efforts to enhance economic ties.
  • Short-term focus: LoCs have primarily funded small-scale projects, lacking a broader development perspective.
  • Competition from other powers: India faces competition from other countries like China, Brazil, and Russia, engaging Africa in various sectors.
  • Lack of synchronization: Development instruments like LoCs, grants, and capacity-building initiatives operate independently, lacking coordination.
  • Instances of racial attacks: Incidents of violence against African students in India pose challenges to people-to-people connections.

Chinese Challenge in Africa

  • China’s extensive investments in Africa have significantly impacted the region across infrastructure, finance, natural resources, and maritime interests.
  • Access to resources, untapped markets, and support for the “One China Policy” drive China’s engagement.

Strategies for India

  • Develop a focused Africa strategy: India should formulate a comprehensive strategy for the next decade, identifying key areas of cooperation.
  • Focus on capacity building: Investing in human capital is crucial for sustainable development in Africa.
  • Collaborate with civil society organizations and diaspora: Indian organizations and the diaspora can play a vital role in implementing development projects at lower costs.
  • Ensure timely project completion: Efforts should be made to expedite LoC projects, learning from countries with better implementation records.

Steps taken so far

  • Indian Technical and Economic Cooperation (ITEC) program: India’s ITEC program provides technical assistance to African countries, with around 50% of ITEC slots reserved for Africa.
  • Asia-Africa Growth Corridor: The AAGC, a cooperation agreement between India, Japan, and African countries, aims for inclusive development.
  • Pan African e-Network: The PAeN facilitates tele-education and telemedicine in Africa, contributing to technological advancement.
  • Maritime cooperation: India’s collaboration with African nations in the maritime domain, exemplified by joint exercises, promotes regional security.
  • Peacekeeping operations: India actively participates in UN peacekeeping operations in Africa, supporting African counter-terrorism efforts and capacity building.
  • Duty-free tariff preferential scheme: India’s scheme benefits African nations, and the India-Africa Forum Summit plays a vital role in strengthening ties.
  • India Africa Defence Ministers conclave: Initiatives like this enhance defence cooperation and bilateral relations.

Way Forward

  • Enhance mutual engagement: Organize the pending fourth India-Africa Forum Summit to further strengthen the relationship.
  • Allocate fresh financial resources: Allocate new resources for grants and concessional loans, prioritizing economic relations.
  • Focus on emerging sectors: Develop collaborations in health, space, and digital technologies to give a 21st-century dimension to the partnership.
  • Continued support in peacekeeping: Sustain India’s contributions to peacekeeping, counter-terrorism, and capacity building in Africa.
  • Improve experiences of Africans in India: Ensure the safety and well-being of Africans studying or working in India, promoting people-to-people connections.
  • Promote development-friendly private investments: Align development cooperation with commercial interests to support mutually beneficial projects.
  • Strengthen international cooperation: Collaborate with international allies to address the China challenge in Africa, emphasizing partnership-based approaches.

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G20 : Economic Cooperation ahead

Sustainable agriculture, climate change and nutrition: a complex challenge

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20 Initiatives

Mains level: the complex nexus of food security, climate variability, and sustainable agriculture for a resilient and sustainable future.

What’s the news?

  • The interconnected challenges of food security, climate change, and sustainable agriculture emphasize the need for a comprehensive approach. The G20 Indian Presidency can play a pivotal role in fostering international cooperation to address these issues.

Central idea

  • The intricate link between food security, climate variability, and sustainable agriculture has far-reaching consequences for the Earth and its inhabitants. Climate change threatens food security through erratic weather and extreme events, while agricultural practices exacerbate climate change, creating a damaging feedback loop.

Climate Variability and Food Insecurity

  • Climate variability, characterized by erratic weather patterns such as droughts and floods, directly impacts agriculture. It can lead to crop failures, reduced agricultural productivity, and increased food insecurity.
  • Erratic weather patterns disrupt traditional farming practices and make it challenging to predict and plan for successful harvests.
  • Vulnerable populations are disproportionately affected by extreme weather events like droughts and floods.

How does land use play a significant role in both climate change and food security? 

  • Unsustainable land use practices, such as deforestation and the expansion of agriculture, release carbon into the atmosphere, contributing to global warming.
  • On the other hand, practices like reforestation, agroforestry, and land conservation can sequester carbon and improve soil health, benefiting both agriculture and climate change mitigation.

The Role of Sustainable Agriculture

  • Mitigating Environmental Impact: Sustainable agriculture focuses on practices that aim to minimize the environmental degradation associated with conventional farming. This includes reducing the use of synthetic pesticides and fertilizers, which can harm ecosystems and water quality.
  • Maintaining or Improving Productivity: Sustainable agricultural practices are designed to maintain or even improve agricultural productivity while reducing environmental harm. This is essential to ensuring a stable and sufficient food supply, particularly in the face of climate change-related disruptions.
  • Enhancing Climate Resilience: Sustainable agricultural practices, such as crop rotation, organic farming, and reduced pesticide use, can enhance the resilience of farming systems. These practices make agriculture less susceptible to disruptions caused by climate variability, such as extreme weather events.
  • Carbon Sequestration: The article suggests that sustainable land use practices, such as reforestation, agroforestry, and land conservation, can sequester carbon from the atmosphere. This not only helps mitigate climate change but also improves soil health, benefiting both agriculture and the environment.

How can agriculture be made more sustainable and resilient in communities in developing countries?

  • Increasing Crop Diversity: Encouraging farmers to diversify their crop choices can improve resilience. Growing a variety of crops can increase the risk of crop failure due to unpredictable weather patterns and pests. Crop diversity also enhances nutrient cycling in the soil, improving overall soil health.
  • Diversifying Farming Systems: Promoting mixed farming systems that include livestock and aquaculture alongside traditional crops can enhance resilience. These integrated systems can optimize resource use, provide multiple sources of income, and improve nutrient cycling.
  • Efficient Irrigation Systems: Investing in efficient irrigation systems can help farmers cope with changing rainfall patterns and water scarcity. These systems can improve soil health and water conservation, reducing vulnerability to climate-related challenges.
  • Promoting Organic Farming Practices: Encouraging organic farming practices, which minimize the use of synthetic pesticides and fertilizers, can reduce environmental harm and improve the resilience of agricultural systems. Organic practices often focus on building healthy soils, which can better withstand climate variability.
  • Cultivating Climate-Resistant Crops: Promoting the cultivation of climate-resistant crop varieties and drought-resistant seeds, such as millets, can help farmers adapt to changing climate conditions. These crops are often better suited to withstand droughts and extreme temperatures.
  • Strengthening Market Links: Facilitating connections between farmers and markets can help ensure that farmers receive fair prices for their produce. This can improve the economic resilience of farming communities and incentivize sustainable practices.
  • Microfinance Opportunities: Providing access to microfinance opportunities can assist farmers in investing in sustainable agricultural practices. Financial support can help farmers acquire the resources they need to adopt more resilient and sustainable farming methods.
  • Policy Support: Implementing policies that emphasize sustainable agriculture and provide incentives for sustainable practices can create an enabling environment for farmers. These policies can include subsidies for sustainable practices, access to credit, and support for climate adaptation.

Global Prospects through the G20 Indian Presidency

  • International Cooperation: The G20 Indian Presidency offers a platform for international cooperation. G20 countries can collaborate and coordinate efforts to address pressing global challenges, including climate change and food security.
  • Knowledge Sharing: The G20 provides a forum for knowledge sharing among member nations. Countries can exchange best practices, share research findings, and pool resources to tackle common issues more effectively.
  • Policy Advocacy: G20 member countries can use their collective influence to advocate for policies that promote sustainability, resilience, and equity in global food systems. This can include advocating for climate-resilient agricultural practices and sustainable land use.
  • Resource Mobilization: The G20 can facilitate resource mobilization to support initiatives aimed at creating a more sustainable and resilient global food system. This includes financial support for sustainable agriculture projects and climate adaptation efforts.
  • Innovation and Research: G20 countries can promote international cooperation in agriculture research and innovation. By working together, they can accelerate the development of sustainable crop varieties, pest-resistant crops, and advanced farming technologies.
  • Global Food Security: The G20 can play a pivotal role in enhancing global food security. This involves coordinating efforts to improve food distribution systems, reduce food losses and waste, and promote sustainable agriculture to ensure a stable food supply for vulnerable populations worldwide.
  • Agricultural and Rural Development: G20 member nations can leverage their resources and expertise to support agricultural and rural development in developing countries. Investments in infrastructure, capacity development, and financial assistance to smallholder farmers can alleviate poverty and promote sustainable farming practices.

Conclusion

  • Fostering international cooperation is essential to addressing the complex nexus of food security, climate variability, and sustainable agriculture for a resilient and sustainable future. The G20, with its potential to drive global strategies, should play a pivotal role in coordinating efforts to mitigate climate change, adapt agricultural practices, and ensure food security on a global scale.

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G20 : Economic Cooperation ahead

Evolution of G20: A Catalyst for Global Economic Cooperation

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20

Mains level: Read the attached story

g20

Central Idea

  • The upcoming G20 summit in Delhi marks the culmination of a year-long series of meetings involving heads of state/government from G20 members.
  • As a crucial platform for international economic cooperation, the G20 has transformed into a pivotal force in shaping global economic governance.

Origins and Composition of G20

Origin Formed in 1999 in response to the financial crises of the late 1990s, with the aim to bring together major economies for international financial stability.
Composition Comprises 19 individual countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, US, and the European Union.
Purpose Serves as a platform for major economies to discuss and coordinate on international financial, economic, and social issues.
Significance Represents around 85% of global GDP, 75% of global trade, and covers two-thirds of the world population.
Leadership Operates without a permanent secretariat or staff.

Presidency rotates among its members on an annual basis.

Current Presidency India holds the G20 Presidency for the period December 2022 to November 2023.

 

Emergence of G20

  • Unplanned Emergence: The G20’s formation was not meticulously orchestrated but emerged due to a combination of circumstance and necessity.
  • Adapting to Global Dynamics: The decline of the North-South divide and the rise of economically potent nations in the Global South underscored the requirement for a more inclusive and representative global economic forum.

From G22 to G20

  • Response to Crisis: The Asian financial crisis in the late 1990s exposed vulnerabilities in the existing global economic governance framework.
  • Genesis of G22: The G20’s precursor, the G22, was established in 1998 as a crisis-response mechanism.
  • Evolving to G20: Dissatisfaction with the ad hoc nature of the G22 and G33 meetings led to the establishment of the G20 in 1999, aiming for a more structured platform.

Global Economic Crisis of 2008: Catalyst for Change

  • The idea of a G20 leaders’ forum was proposed by Canadian Prime Minister Paul Martin in 2005, yet it faced resistance, particularly from the US.
  • The global economic crisis of 2008, comparable to the Great Depression, accelerated the establishment of the G20 leaders’ summit.
  • Recognizing the complexity and magnitude of the crisis, the G20 emerged as a suitable platform to address and mitigate the crisis’s repercussions.

First G20 Leaders’ Summit

  • Washington DC Summit (2008): The inaugural G20 leaders’ summit, titled ‘Summit on Financial Markets and the World Economy,’ took place in November 2008.
  • Extended Participation: Alongside G20 member nations, heads of institutions including the IMF, World Bank, and UN were invited. Spain and the Netherlands also attended.

Conclusion

  • The evolution of the G20, from its spontaneous beginnings to the imminent Delhi summit, epitomizes its role as a responsive mechanism for fostering global economic cooperation.

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G20 : Economic Cooperation ahead

Kashi Culture Pathway: G-20 Consensus on Cultural Heritage

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Kashi Culture Pathway

Mains level: Not Much

Central Idea

  • The G-20 Culture Ministers’ meeting held in Varanasi resulted in the unanimous endorsement of the ‘Kashi Culture Pathway’ document.

Kashi Culture Pathway

  • Under this, G20 nations aims to address the preservation of cultural heritage, curbing illicit artifact trafficking, restitution of cultural property, and protection of living heritage, particularly that of indigenous communities.
  • The document’s key aspects and implications highlight the united stance of G-20 countries towards cultural preservation.

Key Features

  • Protection amid Conflict: The ‘Kashi Culture Pathway’ document accentuates the collective commitment of G-20 nations to protect cultural heritage from intentional and unintentional destruction, particularly in times of conflict.
  • Combating Illicit Trade: G-20 member nations underscored the necessity to establish a robust global coalition to counter the illicit trafficking of cultural artifacts, with special attention to bolstering law enforcement collaboration.
  • Enhanced Cooperation and Tools: Collaboration among nations and strengthening of enforcement tools were identified as essential to heighten the effectiveness of combatting cultural property trafficking. This includes voluntary data exchange to support investigations and law enforcement.
  • Empowerment of Cultural Professionals: The document emphasizes enhancing research, documentation, and capacity-building for cultural professionals, legal authorities, and law enforcement personnel to better counter the trafficking of cultural property.
  • Prevention and Regulation: Preventive measures were stressed, including regulatory actions against the unlawful export of cultural artefacts, particularly within the realm of online trade.

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G20 : Economic Cooperation ahead

Vasudhaiva Kutumbakam in G-20 Logo Sparks Protest

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Vasudhaiva Kutumbakam

Mains level: NA

Vasudhaiva Kutumbakam

Central Idea

  • The inclusion of the Sanskrit term “Vasudhaiva Kutumbakam” (The world is one family) in the G-20 logo has sparked diplomatic discussions between India and China.
  • Reports surfaced suggesting that China objected to the use of non-UN languages like Sanskrit in G-20 texts being negotiated.

Vasudhaiva Kutumbakam

  • The ancient Sanskrit phrase “Vasudhaiva Kutumbakam” encapsulates the idea of the world as one interconnected family.
  • Rooted in religious texts, this concept reverberates through history and has found resonance in modern times, impacting diplomatic exchanges and global events.

अयं निजः परो वेति गणना लघुचेतसाम्।

उदारचरितानां तु वसुधैव कुटुम्बकम्॥

Meaning: Considerations like “he is mine or he is another’s” occur only to the narrow minded person. To the broad-minded person the whole world is a family.

Origin and Meaning:

  • Sanskrit Phrase: “Vasudhaiva Kutumbakam” is composed of three words: Vasudha (Earth), Eva (Thus), and Kutumbakam (Family).
  • Moral Value: It is considered a profound moral value, reflecting interconnectedness and universal harmony.

Historical Context:

  • Maha Upanishad Verse: The original verse appears in Maha Upanishad stressing unity among all beings and the world.
  • Engraved Symbolism: The verse is inscribed in the entrance hall of the Parliament of India, reflecting its importance in Indian society.
  • Embrace of Unity: The verse advocates embracing the world as a family, urging magnanimity and detachment.

Interpretations and Influences

  • Spiritual Progress: Subsequent shlokas expand on the idea, stating that detachment leads to attaining the Brahman (Universal Spirit).
  • Influence in Hindu Literature: The Bhagavad Gita refers to “Vasudhaiva Kutumbakam” as the “Loftiest Vedantic Thought,” demonstrating its influence in Hindu philosophy.
  • Gandhian Connection: Dr. N. Radhakrishnan relates the concept to Gandhi’s holistic development vision and nonviolent conflict resolution.

Modern Relevance

  • PM’s Reference: Prime Minister Modi invoked the phrase, highlighting its values of unity and cultural richness.
  • International Earth Science Olympiad: The phrase was used in the logo of the 7th International Earth Science Olympiad, emphasizing Earth’s interconnected systems.
  • India’s G20 Presidency: The theme and logo of India’s G20 Presidency included “Vasudhaiva Kutumbakam,” representing global unity.

Diplomatic Controversy

  • China’s Opposition: China objected to the use of Sanskrit in G20 documents, asserting that it’s not an official UN language.
  • Logo Exclusion: Despite its significance, the phrase did not appear in official G20 documents due to China’s objections.

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G20 : Economic Cooperation ahead

Transforming Global Financing for Sustainable Development: A Call for Concrete Action

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Summit for a New Global Financing Pact

Mains level: Summit for a New Global Financing Pact, opportunities and challenges for sustainable financing

Financing

Central Idea

  • As world leaders and finance moguls gather in Paris for the Summit for a New Global Financing Pact, the urgency to take tangible steps towards sustainable finance becomes paramount. French President Emmanuel Macron emphasizes the need to enhance “financial solidarity with the [Global]South.” India, as the president of the G20 and co-chair of the steering committee for the summit, is expected to be a strong advocate for the Global South’s interests.

What is Summit for a New Global Financing Pact?

  • The Summit for a New Global Financing Pact is a high-level international gathering aimed at addressing the challenges and finding solutions for sustainable financing on a global scale.
  • The summit serves as a platform for world leaders, finance moguls, policymakers, and other stakeholders to come together and discuss strategies to mobilize financial resources for sustainable development, particularly in low- and middle-income countries.

The specific objectives of the summit

  • Increasing Financial Solidarity: The summit aims to enhance financial solidarity with the Global South, recognizing the need to address the specific challenges faced by developing countries in accessing adequate financial resources for sustainable development initiatives.
  • Bridging the Funding Gap: It seeks to address the gap between the promises made by the international community and the actual funding provided for sustainable development. The focus is on finding concrete solutions to close this gap and ensure that financial commitments are fulfilled.
  • Transforming Financial Architecture: The summit aims to facilitate the transformation of the international financial and development architecture to make it more equitable, predictable, and conducive to supporting sustainable development goals. This includes exploring innovative financing mechanisms, enhancing transparency, and reducing conditionalities.
  • Mobilizing Private Sector Investment: The summit recognizes the importance of private sector engagement in financing sustainable development. It seeks to promote strategies and mechanisms to mobilize private investment in sustainable infrastructure, renewable energy, and other key sectors

Significance of the New Global Financing Pact

  • Addressing Sustainable Development Challenges: The summit provides a platform to discuss and address the pressing challenges related to sustainable development. It focuses on mobilizing financial resources to tackle issues such as climate change, poverty eradication, social inequality, and achieving the Sustainable Development Goals (SDGs).
  • Bridging the Financing Gap: One of the key objectives of the summit is to bridge the gap between the promises made and the actual funding provided for sustainable development initiatives. By highlighting the discrepancy between commitments and payment, the summit aims to find concrete strategies and mechanisms to ensure that financial commitments are fulfilled and adequate funding is made available.
  • Enhancing Financial Solidarity: The summit emphasizes the importance of financial solidarity, particularly with low- and middle-income countries, often referred to as the Global South. It recognizes the need to provide equitable access to financial resources and support developing countries in their sustainable development efforts.
  • Transforming Financial Architecture: The summit serves as a platform to discuss and propose reforms in the international financial and development architecture. It encourages the exploration of innovative financing mechanisms, increased transparency, and reduced conditionalities to ensure more effective and efficient use of financial resources.
  • Mobilizing Private Sector Engagement: The summit recognizes the crucial role of the private sector in financing sustainable development. It aims to facilitate greater private sector engagement by exploring strategies to mobilize private investment in sustainable infrastructure, renewable energy, and other key sectors.

Gap between Promises and Payment

  • Insufficient Funding: Despite global commitments and pledges to support sustainable development initiatives, the actual amount of funding falls short of the targets. This includes commitments made in international agreements such as the Paris Agreement and the United Nations’ Sustainable Development Goals (SDGs).
  • Lack of Predictability: The availability of funding for sustainable development initiatives is often unpredictable, making it difficult for countries and organizations to plan and implement long-term projects. This unpredictability hampers progress in addressing pressing global challenges.
  • Regional Disparities: Funding disparities exist between different regions, with a significant portion of funds allocated to wealthier nations or specific regions, while low- and middle-income countries, particularly in the Global South, face challenges in accessing adequate financial resources.
  • Conditionalities and Restrictions: Funding from international sources often comes with conditions and restrictions that limit the flexibility and sovereignty of recipient countries. These conditions may hinder the effective utilization of funds for sustainable development initiatives.
  • Inadequate Implementation: Even when funding is available, the actual disbursement and implementation of funds may be delayed or ineffective. Administrative bottlenecks, bureaucratic processes, and inefficient mechanisms can contribute to delays and hinder the timely implementation of projects.
  • Limited Private Sector Engagement: Mobilizing private sector investment for sustainable development is challenging due to perceived risks and inadequate returns on investment, particularly in low- and middle-income countries. The gap between promises and payment extends to attracting private sector participation.

Way ahead: Steps to ensure progress in sustainable financing

  • Concrete Action Plans: The summit should lead to the formulation of concrete action plans and commitments from participating countries and stakeholders. These action plans should outline specific measures, timelines, and responsibilities to bridge the gap between promises and actual funding.
  • Implementation and Accountability: It is crucial to ensure the effective implementation of the action plans and hold stakeholders accountable for their commitments. Regular monitoring, reporting, and review mechanisms should be established to track progress and identify areas where additional efforts are needed.
  • Innovative Financing Mechanisms: The summit should encourage the exploration and implementation of innovative financing mechanisms. This includes exploring sources of funding beyond traditional development assistance, such as impact investing, green bonds, climate funds, and public-private partnerships.
  • Strengthening Global Cooperation: The way ahead involves strengthening global cooperation and collaboration. This includes fostering partnerships between governments, international organizations, civil society, and the private sector to leverage their respective expertise, resources, and networks.
  • Empowering Developing Countries: A crucial aspect of the way ahead is empowering developing countries, particularly those in the Global South. This can be achieved by providing technical assistance, capacity building, and knowledge transfer to enable these countries to effectively access and utilize financial resources.
  • Long-term Commitment: Sustainable financing requires long-term commitment and sustained efforts. The way ahead should prioritize the establishment of multi-year funding commitments, stability in financial flows, and a predictable and enabling environment for investment.

Conclusion

  • The Summit for a New Global Financing Pact presents a crucial opportunity to take concrete action towards sustainable finance. As we approach significant milestones, including the 80th anniversary of the UN, reformed finance for sustainable development should serve as the basis for inclusive and effective multilateralism. It is imperative to ensure that the dishes served at the table suit the palate of the Global South, which will contribute significantly to global growth.

Also read:

Road to Net Zero Goes Via Green Financing

 

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G20 : Economic Cooperation ahead

India’s G20 Presidency: Embracing Inclusivity, Ambition, and Action

Note4Students

From UPSC perspective, the following things are important :

Prelims level: India's G20 Presidency and new initiatives

Mains level: India's G20 Presidency, commitment for global good and inclusive approach

G20

Central Idea

  • India’s G20 presidency, characterized by the keywords “inclusive, ambitious, and action-oriented,” has made substantial progress in delivering on its promise of inclusivity. By prioritizing the basic necessities of life for every citizen, India has exhibited a strong commitment to social security support and people-centric development.

Inclusive Development Initiatives during India’s G20 presidency

  • Digital Public Infrastructure: India’s robust digital infrastructure has played a crucial role in delivering the benefits of development directly to citizens across the country. This transparent and corruption-free system has ensured that developmental programs reach every corner of the nation, bridging the digital divide and empowering citizens.
  • Access to Basic Necessities: The government has prioritized providing every citizen with access to basic necessities. For example, around 110 million rural households have been provided with access to clean drinking water at their homes. Additionally, more than 110 million sanitation facilities have been constructed across the country, improving public health and hygiene.
  • Pradhan Mantri Jan Dhan Yojana: This flagship financial inclusion program has been instrumental in providing banking services to previously unbanked sections of society. With a focus on women-led development, the scheme has witnessed significant participation, with 56% of Jan Dhan account holders being women, especially in rural and semi-urban areas.
  • Women-Led Development: Recognizing the pivotal role of women in driving development, India’s G20 presidency has prioritized women’s empowerment. Policies and initiatives have been designed to foster gender equality, enhance women’s participation in various sectors, and promote their overall well-being.

How India’s Foreign Policy consistently prioritized working for the global public good?

  • Humanitarian Assistance and Disaster Relief: India has a long-standing tradition of providing humanitarian assistance and disaster relief to countries in need. In times of crises India has extended its support by offering medical aid and supplies. For example, during the COVID-19 pandemic, India provided essential medical supplies to over 190 countries and shared vaccines through the Vaccine Maitri program with more than 150 countries.
  • Development Cooperation: Through programs such as the Indian Technical and Economic Cooperation (ITEC) and the Indian Development and Economic Assistance Scheme (IDEAS), India has offered capacity building, technical assistance, and development projects in various sectors such as agriculture, healthcare, education, and infrastructure.
  • Multilateral Engagements: India actively collaborates with other nations to find collective solutions to issues like climate change, sustainable development, peacekeeping, and poverty eradication. India’s engagement in forums such as the United Nations, G20, BRICS, and regional organizations like SAARC and ASEAN reflects its commitment to multilateralism and working towards common goals.
  • Peacekeeping Operations: India has consistently been one of the largest contributors to UN peacekeeping missions. Indian peacekeepers have played a crucial role in maintaining peace and stability in conflict-affected regions around the world.
  • South-South Cooperation: India actively engages in South-South cooperation, which involves sharing knowledge, experiences, and resources among developing countries. India has partnered with other developing nations to address common challenges, share best practices, and promote mutual growth and development.

What is Pro-Planet People’s Movement?

  • Prime Minister Modi’s call for a “pro-planet people’s movement” to combat climate change epitomizes inclusivity in its true essence.
  • Aligned with this year’s G20 theme of Vasudhaiva Kutumbakam or One Earth, One Family, One Future, India demonstrates its holistic worldview, emphasizing collective efforts for global good.
  • Derived from the ancient Sanskrit text, the Maha Upanishad, this theme underscores the interconnectedness and value of all life forms, emphasizing the planet Earth’s broader universe

Inclusivity at the Core of India’s G20 Presidency

  • Geographic Representation: India has taken steps to ensure geographic inclusivity by holding G20 meetings in different locations across the country, covering all states and Union Territories.
  • African Representation: India has actively invited African nations to participate in its G20 Presidency, demonstrating a commitment to inclusivity and engagement with the African continent. Countries such as South Africa, Comoros (African Union Chair), Nigeria, Egypt, and Mauritius have been invited, giving a strong voice to Africa within the G20 discussions.
  • Engagement of Non-G20 Members: India has extended invitations to non-G20 member countries, regional organizations, and international organizations for specific G20 meetings. This initiative enriches the discussions by incorporating perspectives and expertise from a wider range of stakeholders. For example, Norway, known for its expertise in the blue economy, has been invited to contribute to the G20 meeting on ocean health.
  • Regional and International Organizations: In line with the inclusive approach, India has invited regional and international organizations to participate in specific G20 meetings. This facilitates dialogue and collaboration with organizations such as the United Nations, World Bank, IMF, and other relevant institutions.
  • People-Oriented Approach: India’s G20 Presidency adopts a people-oriented approach, encouraging the active participation and engagement of citizens. Various events, including seminars, conferences, and festivals, have been designed to involve the public and make them stakeholders in India’s G20 Presidency.

Facts for prelims

What is Startup20?

  • The Startup20 Engagement Group has been initiated under India’s G20 Presidency in 2023.
  • The group aims to create a global narrative for supporting startups and enabling synergies between startups, corporates, investors, innovation agencies and other key ecosystem stakeholders.
  • The engagement group comprises of three taskforces, namely Foundation & Alliance, Finance, and Inclusion & Sustainability, where delegates will come together to discuss efficient policy frameworks to promote scaling up of startups in the G20 nations.

Conclusion

  • India’s G20 presidency embodies the values of inclusivity, ambition, and action. By prioritizing the most vulnerable citizens of the world, India aims to foster human-centric development. In an era of global crises, the significance of upholding the sentiment of Vasudhaiva Kutumbakam has never been more crucial. India remains committed to inclusivity, ensuring the participation of all in the path to growth and prosperity.

Must read OP-Eds:

SAI20 and India’s Presidency of G20

India’s G20 Presidency: Strengthening Global Health Governance for Safer and Equitable World

Blue Economy: India’s G20 Presidency Offers An Opportunity

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G20 : Economic Cooperation ahead

Reimagining Nation-States in the Age of Technology

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20 cooperation and global governance

Mains level: Nation-states and potential risks and implications of emerging technologies.

Nation-State

Central idea

  • The rapid development of technology since the Dot-com bubble burst in 2000 has significantly transformed our societies and daily lives. While the convenience brought by technology is undeniable, it has also presented complex challenges that demand a re-evaluation of fundamental concepts in polity and governance. This article explores the challenges to the notion of the nation-state and emphasizes the need for a principle-based global order to govern technology.

Notion of nation state

  • The notion of a nation-state refers to the concept of a territorially-bound and politically sovereign entity that represents a distinct nation.
  • It combines the idea of a nation, which represents a group of people sharing common characteristics and a sense of collective identity, with the idea of a state, which encompasses a defined territory and has the authority to govern its population

The key characteristics of a nation-state

  • Sovereignty: The nation-state possesses full political authority and independence within its defined territory. It has the right to govern itself and make decisions without external interference.
  • Territoriality: The nation-state has defined borders that delineate its territory. The borders are intended to protect the nation’s interests and provide a sense of belonging and identity for its citizens.
  • Nationhood: The nation-state represents a distinct nation or a group of people sharing common characteristics, including language, culture, history, and often a sense of shared destiny or common identity.
  • Governance: The nation-state has its own political institutions, including a government, legal system, and administrative apparatus, through which it exercises authority and makes decisions on behalf of its citizens.

Challenges to the Notion of Nation-States in the age of technology

  • Shifting Boundaries: The rise of cyber-attacks and other externalities that transcend borders, such as data flows and digital interactions, have a profound impact on the socio-economic and political existence of nation-states. This blurring of physical boundaries challenges the traditional understanding of nation-states as confined to a specific geographical space.
  • Enforceability of Laws: The enforceability of geography-based rules has become increasingly complex due to the declining significance of conventional geographical borders. In the digital era, virtual activities are not confined to the borders of a country but travel across the world through the internet. When these activities violate the laws of a particular nation-state, enforcing those laws becomes challenging without a globally-accepted norm or framework.
  • Incapacity to Regulate Technology: Nation-states are no longer the sole conduits through which various actors, including multinational corporations, non-governmental organizations, and supranational organizations, operate. The growing role of private non-state actors in areas such as mapping technology illustrates the shifting dynamics of governance and regulation.

Facts for prelims

What is SAI20?

  • SAI20 stands for Supreme Audit Institutions (SAIs) of G20 countries.
  • It is a forum where SAIs from G20 countries can engage with each other to share their experiences and expertise in auditing public policies and governance practices.
  • The group meets annually to discuss important issues related to public auditing and to develop joint initiatives to promote good governance and accountability in their respective countries.

Incapacity of Nation-States to Effectively Administer Technology

  • Proliferation of Non-State Actors: Technology has enabled the rise of non-state actors, such as multinational corporations, non-governmental organizations, and supranational organizations, that operate beyond the traditional jurisdiction of nation-states. As a result, nation-states often lack the authority and mechanisms to effectively govern and regulate the activities of these non-state actors.
  • Technological Expertise Gap: Nation-states may face challenges in keeping up with the pace of technological advancements and maintaining a skilled workforce capable of effectively administering and regulating technology. This expertise gap hampers their ability to understand and address the intricate issues arising from the use and impact of technology.
  • Regulatory Lag: Nation-states may struggle to keep up with the innovative applications of technology and may find it difficult to create and implement comprehensive regulations that address the potential risks and implications of emerging technologies.
  • Lack of Cross-Border Enforcement Mechanisms: When activities occurring beyond physical boundaries violate the laws of a particular nation-state, enforcing those laws becomes complicated without internationally accepted norms and cooperation from other jurisdictions. This lack of cross-border enforcement mechanisms undermines the capacity of nation-states to administer technology effectively.
  • Resource Limitations: Nation-states may face resource limitations in terms of funding, infrastructure, and technological capabilities necessary to effectively administer and regulate technology. The fast-paced and resource-intensive nature of technology requires significant investments and infrastructure development, which may be challenging for some nations to prioritize or achieve.

Way Forward

  • International Cooperation and Coordination: Collaborative efforts should focus on sharing best practices, harmonizing regulations, and establishing common principles and norms for governing technology. Platforms such as the United Nations, G-20, and other international organizations should facilitate dialogues and promote consensus-building among nations.
  • Principle-Based Global Order: A principle-based global order for technology should be developed to guide governance frameworks and ensure fair, transparent, and accountable practices. This order should encompass principles such as privacy protection, data sovereignty, ethical use of technology, and universal access.
  • Inclusive Decision-Making: Decision-making processes regarding technology governance should be inclusive, ensuring the participation of all relevant stakeholders, including governments, civil society, academia, and the private sector.
  • Strengthening Regulatory Capacities: Nation-states need to enhance their regulatory capacities to keep pace with technological advancements. This involves investing in research and development, fostering collaboration between public and private sectors, and promoting technological literacy among policymakers and regulators.
  • Bridging the Digital Divide: To ensure equitable benefits from technology, efforts should be made to bridge the digital divide, both within and between nations. This includes promoting universal access to affordable and reliable internet connectivity, investing in digital infrastructure, and fostering digital skills development.
  • Ethical Use of Technology: Ethical considerations should underpin the development and deployment of technology. This includes promoting responsible innovation, ensuring the ethical use of data, and addressing potential biases and discriminatory impacts of technological systems. Nation-states should encourage the adoption of ethical frameworks, codes of conduct, and standards to guide the development and application of emerging technologies.

Conclusion

  • The advent of technology has disrupted conventional notions of nation-states, leading to the need for reimagining governance structures. The challenges posed by technology require a principle-based global order to effectively govern its use and impact. India, with its current leadership role in the G-20, has the opportunity to spearhead the development of this global order, just as it has done in other global initiatives. By embracing this approach, we can navigate the complexities of technology and ensure that its benefits are harnessed while minimizing the risks and maintaining a balance between sovereignty, regulation, and privacy.

Also read:

India’s Leadership of G-20 and SCO: Challenges and Realities

 

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G20 : Economic Cooperation ahead

Strengthening Disaster Risk Reduction: G20’s Role and Priorities

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20 and disaster management initiatives and finance mechanism

Mains level: G20's Role in Driving Global Goals and India's leadership in disaster risk management

Central Idea

  • The G20 nations, representing a population of 4.7 billion people, are exposed to significant risks from natural disasters and face substantial vulnerabilities. In the World Risk Index, four G20 countries are among the top 10 most vulnerable nations. The economic impact of disasters in the G20 countries alone amounts to an estimated annual average loss of $218 billion. It is imperative to prioritize disaster risk reduction measures to mitigate these losses and protect development gains.

G20’s Role in Driving Global Goals

  • Platform for International Cooperation: The G20 provides a platform for international cooperation and collaboration among the world’s major economies. It brings together leaders from diverse nations to discuss global challenges, share best practices, and coordinate efforts to address common goals.
  • Influence and Economic Power: The G20 nations represent a significant share of the global economy, accounting for approximately 85% of global GDP and two-thirds of the world’s population. Their collective influence and economic power give them the capacity to drive global initiatives and mobilize resources to address pressing issues.
  • Promoting Policy Coherence: The G20 promotes policy coherence by fostering dialogue and coordination among its member nations. Through discussions, agreements, and joint statements, the G20 seeks to align policies and actions to address global challenges, including those related to disaster risk reduction.
  • Innovative Financing Mechanisms: The G20 has the ability to explore and promote innovative financing mechanisms for global goals. This includes mobilizing financial resources from governments, multilateral institutions, capital markets, insurance companies, philanthropies, and communities. By maximizing the impact of financial resources, the G20 can support initiatives related to disaster risk reduction and other priority areas.
  • Advancing International Frameworks and Agreements: The G20 plays a vital role in advancing international frameworks and agreements related to disaster risk reduction. For instance, the G20 can support the implementation of the Sendai Framework for Disaster Risk Reduction, which provides a global roadmap for reducing disaster risks and enhancing resilience.
  • Sharing Best Practices and Lessons Learned: Through the G20 platform, member countries can share best practices, experiences, and lessons learned in disaster risk reduction. This exchange of knowledge and expertise contributes to the development of effective strategies, policies, and approaches that can be replicated and scaled up globally.
  • Driving Innovation and Research: The G20 can drive innovation and research by promoting investment in research and development related to disaster risk reduction. This includes supporting scientific advancements, technological innovations, and data-driven approaches that enhance understanding, preparedness, and response to disasters.
  • Influencing Global Agendas: As major economies, the G20 nations have significant influence on global agendas. By prioritizing and advocating for specific issues, such as disaster risk reduction, the G20 can shape global discourse, policies, and actions, mobilizing international attention and resources towards addressing these challenges

The vulnerability of G20 countries to disasters

  • Geographic Location: Several G20 countries are located in regions prone to specific hazards. For instance, countries like Japan, Indonesia, Mexico, and Turkey are situated in seismically active zones, making them vulnerable to earthquakes and tsunamis. Coastal nations, including the United States, China, India, Brazil, and Australia, face the risks of tropical cyclones, storm surges, and coastal flooding.
  • Climate Extremes: G20 countries experience a wide range of climate-related hazards. For instance, Canada and Russia face risks associated with extreme cold, while Australia and Brazil are susceptible to wildfires and droughts. Heatwaves and heavy rainfall leading to floods pose significant risks in countries like India, Germany, and South Korea.
  • Population Density: Several G20 countries have high population densities, increasing their vulnerability to disasters. The concentration of people and infrastructure in urban areas amplifies the potential impacts of hazards such as earthquakes, floods, and storms. Cities like Tokyo, Mexico City, Mumbai, Istanbul, and Shanghai face unique challenges due to their large populations and exposure to multiple hazards.
  • Infrastructure and Urbanization: Rapid urbanization and inadequate infrastructure planning can exacerbate vulnerability to disasters. Poorly constructed buildings, inadequate drainage systems, and improper land use practices can heighten the impacts of hazards. G20 countries with rapid urban growth, such as China and India, face challenges related to resilient urban development.
  • Socioeconomic Factors: Socioeconomic factors such as poverty, inequality, and limited access to resources can increase vulnerability to disasters. Countries with significant disparities in wealth distribution, such as India, Brazil, and South Africa, often face challenges in adequately addressing disaster risks and providing timely response and recovery.
  • Environmental Degradation: G20 countries also grapple with environmental degradation, which can exacerbate vulnerability to disasters. Deforestation, soil erosion, and loss of wetlands and natural buffers diminish the ability of ecosystems to mitigate and absorb the impacts of hazards. This is particularly relevant for countries like Brazil, Indonesia, and Russia, which are home to ecologically sensitive regions

India’s Leadership in Disaster Risk Reduction (DRR)

  • Initiating a New Workstream in G20: India has taken a proactive step by initiating a new workstream within the G20 focused on disaster risk reduction. This highlights India’s recognition of the importance of international collaboration and concerted efforts to address disaster risks at a global level.
  • Five Priorities Outlined in the Working Group: In the first meeting of the G20 working group on disaster risk reduction, India put forth five priorities to guide the group’s efforts. These priorities include universal coverage of early warning systems, emphasis on disaster and climate-resilient infrastructure, improving financing frameworks, enhancing response capabilities, and applying ecosystem-based approaches to disaster risk.
  • Transforming Disaster Financing: India has spearheaded efforts to transform the way governments finance disaster risk reduction. Recognizing the limitations of traditional budget allocations, India has explored innovative financing tools and mechanisms. This includes creating reserve funds, dedicated lines of credit, and leveraging global resources to support disaster-resilient infrastructure development.
  • Targeted Efforts to Reduce Losses: India has made targeted efforts to reduce losses from disasters through comprehensive risk management strategies. By focusing on areas such as flood risk management, India has implemented measures to minimize the impacts of extreme weather conditions, protect lives, and enhance disaster preparedness.
  • Coalition for Disaster Resilient Infrastructure (CDRI): India and the United States currently co-chair the Coalition for Disaster Resilient Infrastructure. The CDRI aims to promote investments in resilient infrastructure and foster international collaboration to enhance disaster resilience globally. India’s leadership in this coalition reflects its commitment to driving resilience-building efforts.
  • Implementation of Sendai Framework: India has aligned its disaster risk reduction efforts with the Sendai Framework, a global framework for DRR. The 10-point agenda outlined by India’s Prime Minister after the adoption of the Sendai Framework guides the country in the implementation of comprehensive DRR strategies.

Key Themes for Future Action

  • Reimagining Financing for Disaster Risk Reduction: Explore innovative financing tools, including reserve funds, dedicated lines of credit, and global resource mobilization. While green financing has gained momentum, greater attention should be given to disaster risk financing, especially for countries like India with increasing capital expenditure.
  • Differential Strategies for Extensive and Intensive Risks: Develop targeted approaches to reduce losses from frequent but moderate impact events (extensive risks) such as heatwaves, lightning, floods, and landslides. These events accumulate significant losses and necessitate specific risk reduction measures.
  • Convergence of Disaster Risk Reduction and Climate Change Adaptation: Integrate efforts to address both disaster risk reduction and climate change adaptation. Analytical and implementation capacities for disaster risk reduction should support climate change adaptation, ensuring synergies between flood management structures and adaptation efforts.
  • Priority Access to Early Warning Systems: Early warning systems, such as cyclone early warnings, should be treated as global public goods, accessible to all populations irrespective of their economic strength. The G20 can lead by example, setting up mechanisms to ensure universal access to early warning systems in line with the UN Secretary General’s initiative.
  • Multi-tiered and Multi-sectoral Effort: Disaster risk reduction requires an integrated approach across levels and sectors. Integration from local to global levels and horizontal collaboration across sectors will enhance readiness to manage unknown risks, considering the interlinkages and interdependence of the world

Need for Convergence of Disaster Risk Reduction and Climate Change Adaptation

  • Shared Risks and Drivers: Both DRR and CCA address risks associated with natural hazards and climate change impacts. Disasters are often exacerbated by climate change, while climate change can intensify the frequency and severity of disasters. Converging efforts allows for a comprehensive and integrated approach to address these shared risks and underlying drivers.
  • Synergies in Solutions: DRR and CCA strategies share common elements and can leverage synergies in their solutions. For example, building disaster-resilient infrastructure can contribute to climate change adaptation by considering future climate scenarios. Similarly, nature-based solutions, such as protecting and restoring ecosystems, can provide benefits for both disaster risk reduction and climate resilience.
  • Efficiency and Resource Optimization: Converging DRR and CCA efforts allows for the efficient use of resources, avoiding duplication and maximizing the effectiveness of interventions. Instead of implementing separate and parallel initiatives, integrated approaches can streamline efforts, optimize funding, and improve overall outcomes.
  • Integrated Risk Management: Combining DRR and CCA enables a holistic approach to risk management. By integrating climate projections, vulnerability assessments, and disaster risk assessments, decision-makers can develop comprehensive risk management strategies that address both current and future risks.
  • Co-benefits for Sustainable Development: Integrating DRR and CCA contributes to sustainable development goals. By reducing disaster risks and enhancing climate resilience, communities can protect livelihoods, preserve ecosystems, ensure food security, and promote social well-being. This integrated approach aligns with the broader agenda of sustainable development.
  • Policy and Institutional Integration: Convergence of DRR and CCA necessitates policy coherence and institutional coordination. Aligning strategies, frameworks, and institutions responsible for DRR and CCA facilitates better integration of risk reduction and adaptation measures. This coordination strengthens governance structures and enhances implementation effectiveness.
  • Adaptive Capacity Building: Addressing the interconnected challenges of disasters and climate change requires enhancing adaptive capacities at various levels. By combining efforts, stakeholders can work collaboratively to build capacities for disaster response, early warning systems, community engagement, and climate-resilient practices, thereby enhancing overall resilience.

Conclusion

  • Disaster preparedness has been a priority of India for last few years. India has taken significant steps in transforming disaster risk reduction financing and targeted loss reduction efforts. Chairing the Coalition for Disaster Resilient Infrastructure alongside the United States, India’s commitment to disaster preparedness is reflected in the creation of a new workstream under the G20. By leveraging their economic power, promoting policy coherence, and fostering international cooperation, the G20 can contribute to building a safer, more resilient, and sustainable world.

Also read:

India’s G20 Presidency and Disaster Risk Management

 

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G20 : Economic Cooperation ahead

C-20: Preventing the Erosion of Civil Society Independence

Note4Students

From UPSC perspective, the following things are important :

Prelims level: C-20, U-20 and other such engagement forums within G-20 framework

Mains level: C-20 politicization, Civil Society Independence and way forward

C-20

Central Idea

  • The civil society process of G-20, known as C-20, which is meant to provide a platform for independent voices and hold governments accountable, has been co-opted by the ruling party in India. Critiques argue that under the guise of civil society representation, C-20 has become a tool to further a politico-religious vision and legitimize neoliberal economic policies. This distortion of C-20 raises concerns about its credibility and ability to serve as a counter-balance to undue business influence.

What is C-20?

  • C-20 refers to the civil society process of the Group of Twenty (G-20) summit.
  • The C-20 process provides a platform for civil society organizations to engage with G-20 member governments, discuss relevant issues, and advocate for policy changes.
  • It aims to ensure that the voices and concerns of civil society are taken into account in the decision-making processes of G-20.
  • C-20 focuses on economic, social, and cultural issues, and its participants include non-governmental organizations, grassroots movements, and other civil society actors.

Facts for prelims

What is U20?

  • A city diplomacy initiative called the “Urban 20” (U20) was launched in December 2017 within G20 ecosystem.
  • It was meant to collectively raise critical urban issues of G20 cities during the G20 negotiations.
  • U20 specifically focuses on climate change, sustainable development, and socio-economic issues in connection with the Sustainable Development Goals.

What is SAI20?

  • SAI20 stands for Supreme Audit Institutions (SAIs) of G20 countries.
  • It is a forum where SAIs from G20 countries can engage with each other to share their experiences and expertise in auditing public policies and governance practices.
  • The group meets annually to discuss important issues related to public auditing and to develop joint initiatives to promote good governance and accountability in their respective countries.

What are the concerns about C-20 ‘s credibility?

  • Politicization: The C-20 process in India has been co-opted by the party in power, using it as a platform to further its own politico-religious vision. This raises questions about the independence and neutrality of the civil society process.
  • Lack of diversity: The composition of C-20 has raised concerns about the overwhelming presence of members from a single religion, which goes against the principle of inclusiveness. The dominance of a particular religious group undermines the diversity and representation of civil society voices.
  • Censorship and suppression: There have been instances of censorship and attempts to control the narrative within C-20. Participants have been asked to refrain from making political statements about G-20 and C-20, limiting their ability to critically address policies and actions that may be detrimental to biodiversity and community interests.
  • Limited influence: The C-20 process, along with other engagement forums of G-20, has not been allowed to play an independent role in holding governments accountable or countering undue business influence. The influence of civil society in shaping G-20 decisions and policies remains limited.
  • Lack of transparency: The selection and decision-making processes within C-20 have been criticized for lacking transparency. The way the C-20 architecture is set up, with its Secretariat housed in a civil society organization linked to a particular political ideology, raises concerns about the independence and fairness of the process.

Impact of using international engagement forums for political gains?

  • Undermining credibility: When international engagement forums, such as the G-20 and its civil society process, are used for political and electoral gains, it undermines their credibility and purpose. These platforms are meant for meaningful dialogue, collaboration, and decision-making on global issues, and politicizing them for short-term domestic interests erodes their legitimacy.
  • Diminishing trust and cooperation: Political exploitation of international engagement forums can lead to a breakdown of trust and cooperation among participating countries and civil society organizations. It creates an atmosphere of suspicion and undermines the spirit of mutual respect and collaboration that these forums are intended to foster.
  • Weakening global governance: The instrumentalization of international engagement forums for political gains can weaken global governance mechanisms. It hampers the ability of these forums to address pressing global challenges effectively and make informed decisions based on the common good, as decisions may be driven by narrow political considerations rather than sound policy-making.
  • Impact on international reputation: The misuse of international engagement forums can have a negative impact on a country’s international reputation. It may be seen as a breach of trust and an attempt to manipulate global platforms for domestic political purposes, damaging the country’s standing in the international community.
  • Impeding progress on global issues: When international engagement forums are exploited for political and electoral gains, the focus shifts from addressing global issues to advancing narrow domestic agendas. This can hinder progress on crucial matters such as climate change, sustainable development, poverty alleviation, and human rights, which require international collaboration and concerted efforts.
  • Alienating civil society: The politicization of international engagement forums can alienate civil society organizations and undermine their trust in the process. When civil society voices are co-opted or marginalized for political gains, it weakens their role as independent actors, reduces their influence, and stifles their ability to contribute meaningfully to global policy discussions.
  • Loss of long-term benefits: Prioritizing short-term political and electoral gains over the long-term benefits of meaningful international engagement can lead to missed opportunities for economic, social, and diplomatic advancements. It undermines the potential for constructive dialogue, knowledge sharing, and collaboration that can yield positive outcomes for the country and the global community.

Way ahead: Addressing the concerns over C-20

  • Enhance transparency and inclusiveness: There should be greater transparency in the selection processes of C-20 members and the decision-making mechanisms. Efforts should be made to ensure diverse representation from different religions, ideologies, and sectors, fostering inclusivity and avoiding the dominance of any particular group.
  • Safeguard independence: Measures should be taken to ensure the independence of C-20 from government influence. The Secretariat and coordination should be entrusted to neutral and independent organizations or institutions that have a proven track record of upholding the principles of civil society engagement.
  • Strengthen civil society networks: Civil society organizations should strengthen their networks, collaborations, and solidarity to amplify their voices and advocate for meaningful engagement in the C-20 process. This can involve building alliances with other organizations, sharing information and resources, and collectively advocating for the principles of inclusiveness and accountability.
  • Promote critical dialogue: Open and constructive dialogue should be encouraged within C-20, allowing for diverse perspectives and critical analysis of G-20 policies and actions. Participants should have the freedom to raise concerns, offer alternative viewpoints, and contribute to the discourse without fear of censorship or reprisal.
  • Advocate for policy coherence: Civil society organizations should actively engage in advocacy and policy dialogue with both the government and international bodies like the G-20. They should highlight the need for policy coherence that integrates social, environmental, and economic dimensions, ensuring that biodiversity conservation, sustainability, and the rights of marginalized communities are prioritized.
  • Strengthen public awareness: Efforts should be made to increase public awareness about the G-20 and its civil society process, including C-20. This can involve disseminating information, organizing awareness campaigns, and facilitating public participation in discussions and decision-making processes.
  • International solidarity: Civil society organizations in India should foster collaborations and exchanges with international civil society networks and organizations working on similar issues. Sharing experiences, strategies, and best practices can strengthen the collective voice of civil society globally and exert pressure for more accountable and inclusive processes.

Conclusion

  • The co-optation of C-20 by the ruling party in India has undermined its credibility as an independent civil society platform. Civil society organizations participating in C-20 must reflect on whether they will legitimize this distortion or challenge it, as their decisions will shape the future of this crucial platform for global dialogue and accountability.

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G20: India at Urban20 (U20)

 

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G20 : Economic Cooperation ahead

India’s G20 Presidency and Disaster Risk Management

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20, Disaster Risk Reduction Working Group (DRRWG)

Mains level: India's G20 presidency and leadership in disaster risk management

Central Idea

  • The endorsement of a new working group on disaster risk reduction by the G20, under India’s presidency, presents an opportunity to prioritize disaster risk financing and achieve the targets set by the Sendai framework for 2030. The increasing occurrence of natural and human-made catastrophes globally has highlighted the need for competent financial risk management and insurance.

The Need for Disaster Risk Financing

  • Recent years have witnessed a surge in both natural and human-made catastrophes worldwide. Disasters not only exacerbate poverty and hinder development but also generate social polarization.
  • Lack of competent financial risk management and insurance has allowed risks to proliferate, causing havoc in society and the economy. Annual disaster losses have a significant impact on low-income economies

The Role of the G20 in Strengthening Financial Risk Management

  • Enhancing Risk Understanding and Integration: The G20 can support countries in enhancing their understanding of disaster risks and integrating them into government planning and budget processes. This includes promoting the development and dissemination of risk assessment tools, methodologies, and best practices.
  • Strengthening Regulation and Supervision in the Insurance Industry: Effective regulation, legislation, and supervision are crucial for the insurance industry to play a proactive role in managing disaster risks. The G20 can facilitate dialogue and cooperation among regulators and policymakers to establish robust frameworks that ensure fair and transparent insurance practices
  • Facilitating Public-Private Partnerships: Public-private partnerships are essential for managing and financing disaster risks effectively. The G20 can foster an enabling environment for partnerships between governments, private sector entities, and financial institutions.
  • Shifting from Ex-post to Ex-ante Financing Mechanisms: Traditionally, financial resources for disaster response, recovery, and reconstruction have been mobilized after an event occurs (ex-post financing). The G20 can advocate for a shift towards ex-ante financing mechanisms, where financial resources are pre-arranged and readily available to respond to disasters.
  • Encouraging Investment in Disaster Risk Reduction: There is a scarcity of investment in a development-oriented approach that focuses on reducing disaster risks. The G20 can promote investment in disaster risk reduction by raising awareness about the benefits of resilience-building measures and creating incentives for both public and private sectors to allocate resources towards risk reduction initiatives.

What is Disaster Risk Reduction Working Group (DRRWG)?

  • The Disaster Risk Reduction Working Group is a newly endorsed working group within the G20 that focuses on disaster risk reduction.
  • It serves as a platform for member countries to collaborate and share knowledge on effective strategies for managing and reducing disaster risks.
  • It aims to address key components of comprehensive financial management strategies for disaster risks, including risk assessment, insurance coverage, financial assistance, and risk transfer mechanisms.

Facts for prelims

What is Coalition for Disaster Resilient Infrastructure (CDRI)?

  • The CDRI is an international coalition of countries, UN agencies, multilateral development banks, the private sector, and academic institutions that aim to promote disaster-resilient infrastructure.
  • Its objective is to promote research and knowledge sharing in the fields of infrastructure risk management, standards, financing, and recovery mechanisms.
  • It was launched by the Indian PM Narendra Modi at the 2019 UN Climate Action Summit in September 2019.
  • CDRI’s initial focus is on developing disaster-resilience in ecological, social, and economic infrastructure.

Significance of the Disaster Risk Reduction Working Group (DRRWG)

  • Knowledge Sharing and Collaboration: The DRRWG provides a platform for member countries to share knowledge, experiences, and best practices in disaster risk reduction. It facilitates collaboration and learning from diverse approaches and methodologies employed by different nations.
  • Harmonization and Standardization: The DRRWG promotes harmonization and standardization of definitions, methodologies, and data collection practices related to disaster risk assessment and financing. This improves comparability and enables better analysis and benchmarking of disaster risks across different regions.
  • Access to International Markets: By harmonizing definitions and methodologies, the DRRWG helps countries improve access to international (re)insurance markets. Standardized approaches and better data quality enhance the confidence of insurers and reinsurers, facilitating the availability of insurance coverage and risk transfer mechanisms.
  • Comprehensive Financial Management Strategies: The DRRWG aims to address all key components of comprehensive financial management strategies for disaster risks. Comprehensive strategies enhance countries’ abilities to manage and reduce disaster risks effectively.
  • Investment in Disaster Risk Reduction: The DRRWG emphasizes the importance of investment in disaster risk reduction initiatives. By providing screening criteria for disaster-resilient investments and entities, the DRRWG helps guide investment decisions toward reducing risks and building resilience.
  • Global Resilience Building: The efforts of the DRRWG contribute to global resilience-building against disasters. By fostering cooperation, sharing expertise, and promoting best practices, the DRRWG strengthens the collective capacity of member countries to mitigate, manage, and recover from disasters, ultimately enhancing global resilience.

How India can guide G20’s disaster management initiatives?

  • Setting the Agenda: India, as the G20 president, can prioritize disaster management on the agenda of G20 meetings and discussions. By emphasizing the importance of disaster resilience and risk reduction, India can ensure that member countries address these issues at the highest level of international cooperation.
  • Knowledge Sharing and Capacity Building: India can lead efforts to facilitate knowledge sharing and capacity building among G20 member countries in the field of disaster management. This can involve organizing workshops, training programs, and conferences to promote the exchange of best practices, lessons learned, and innovative approaches.
  • Policy Advocacy: India can advocate for policy measures that strengthen disaster management capabilities. This includes encouraging the adoption of robust regulatory frameworks, promoting risk-based approaches, and supporting the integration of disaster risk reduction into national development plans and policies.
  • Financial Commitments: As the G20 president, India can encourage member countries to allocate financial resources towards disaster risk reduction and resilience-building initiatives. By highlighting the economic and social benefits of such investments, India can mobilize support for increased funding and financing mechanisms for disaster management.
  • Public-Private Partnerships: India can promote partnerships between governments and the private sector to enhance disaster management efforts. By fostering collaboration and sharing expertise, technologies, and resources, India can facilitate the development of innovative solutions and strengthen resilience across sectors.
  • International Cooperation: India can leverage its position as G20 president to strengthen international cooperation in disaster management. This involves collaborating with other international organizations, regional bodies, and stakeholders to coordinate efforts, share data and information, and foster a collective response to global disaster risks.

Conclusion

  • Prioritizing disaster risk financing within the G20, under India’s presidency, presents an opportunity to convert intentions into investment opportunities. India’s experience in dealing with natural disasters positions it to lead in disaster risk management.

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Disasters at Himalayan Region (Uttarakhand)

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G20 : Economic Cooperation ahead

Protecting Critical Information Infrastructure: The Role of the G20

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Critical information infrastructure

Mains level: Critical information infrastructure, need for global norms of protection

Central Idea

  • Technology has become pervasive, impacting various aspects of society, including national and foreign policies, governance, service delivery, and warfare. However, this dependence on technology also exposes critical systems to potential disruptions. Safeguarding critical systems is a nation’s responsibility to ensure the continuity of vital services.

What is critical information infrastructure?

  • Critical information infrastructure refers to the interconnected systems and assets that are essential for the functioning of a nation’s society, economy, and government. It encompasses the hardware, software, networks, data, and communication channels that support vital services and processes.
  • It includes sectors such as transportation, energy, banking and finance, healthcare, telecommunications, water and sanitation, emergency services, and government networks.
  • Protecting critical information infrastructure is crucial to ensure the continuity of services, safeguard sensitive data, and defend against cyber threats, including cyberattacks, data breaches, and other malicious activities.

Differences in defining critical information infrastructure

  • Criteria for Criticality: Different countries employ distinct criteria to determine the criticality of information infrastructure.
  • For example: One country may consider infrastructure critical if its failure impacts national security, economy, public health, or safety. Another country may define critical infrastructure based on the potential for sustained supply shortages, disruptions to public safety and security, or other significant consequences.
  • Scope of Infrastructure: There may be variations in the scope of infrastructure considered critical. While certain sectors like energy, transportation, banking, and telecommunications are commonly recognized as critical across many countries, there might be differences in identifying sub-sectors or specific enterprises within those sectors. Some countries may include additional sectors like water and sanitation, emergency services, healthcare, or government networks in their definition of critical information infrastructure.
  • Overlapping Criteria: In some cases, the criteria used to identify critical infrastructure may overlap with one another. For instance, ensuring the availability, delivery, or integrity of essential services can encompass vital societal functions, information flow, and communication channels. Harmonizing these overlapping criteria can help establish specific and comprehensive criteria that cater to the needs of all countries.
  • National Context: National priorities and contextual factors also influence the definition of critical information infrastructure. Countries may consider their unique geopolitical situation, existing threats, vulnerabilities, and the potential impact on their economy and citizens. This context-specific approach allows each country to address its specific challenges and ensure the protection of infrastructure crucial to its national well-being.

Role of the G20 in developing global norms for protecting critical infrastructure

  • Platform for Discussion: The G20 provides a platform for member countries to engage in discussions and exchanges on pressing global issues, including cybersecurity and the protection of critical infrastructure. It brings together policymakers, experts, and stakeholders from various sectors to share insights, experiences, and best practices.
  • Building Consensus: The G20 aims to build consensus among member countries on critical issues related to protecting infrastructure. Through dialogue, negotiations, and diplomatic efforts, the G20 seeks to develop common understandings and principles that can guide international cooperation in safeguarding critical information infrastructure.
  • Initiating Discussions: The G20 has the capacity to initiate discussions on specific topics and themes relevant to critical infrastructure protection. By placing the issue on the G20 agenda, it draws attention to the importance of addressing cybersecurity risks and establishing global norms in this area.
  • Leveraging Economic Influence: The G20 represents around 85 percent of global GDP, over 75 percent of global trade, and a significant portion of the world population. This economic influence provides the G20 with leverage to drive discussions and encourage member countries to prioritize the protection of critical infrastructure.
  • Collaboration with International Organizations: The G20 collaborates with international organizations such as the United Nations (UN), International Telecommunication Union (ITU), and Organization for Economic Cooperation and Development (OECD). This collaboration helps leverage the expertise, resources, and frameworks of these organizations to inform discussions and develop comprehensive approaches to protecting critical infrastructure.
  • Promoting International Stability: The G20 recognizes that protecting critical infrastructure is crucial for international stability and economic cooperation. By advocating for global norms and responsible state behavior, the G20 aims to enhance cybersecurity, prevent disruptions, and promote a secure digital environment for economic activities.
  • Influencing Policy Development: The G20’s discussions and recommendations on critical infrastructure protection can influence policy development at the national and international levels. Member countries may align their policies and frameworks with the norms and principles identified through G20 deliberations, thereby fostering harmonization and cooperation.

Recommendations to the G20

  • Common Definition and Critical Sectors: The G20 should adopt a phased approach, beginning with establishing a common definition of critical infrastructure. Subsequently, a broader consensus on critical sectors should be built, followed by the formulation of common principles for regulating critical infrastructure. This process will facilitate a global consensus, ensure cooperation among member countries, and guide nations that are in the early stages of regulating critical infrastructure.
  • Common Principles: While formulating common principles for regulating critical infrastructure, the G20 should reaffirm and adopt existing norms as the foundation for future discussions. This includes commitments made in G20 documents like the Hamburg Action Plan and the Buenos Aires Declaration. Furthermore, the G20 can draw from the initiatives of other multilateral groupings, such as the G7, G8, and OECD, that have focused on protecting critical infrastructure.
  • Respecting International Law: The G20 should commit to protecting critical infrastructure and refrain from intentionally damaging it. Member countries should conduct themselves in accordance with international law and uphold responsible state behavior in cyberspace.
  • International Cooperation: G20 countries must enhance cooperation to prevent, mitigate, trace, and investigate cyber incidents targeting critical infrastructure. Sharing information regarding such incidents should be encouraged. Adopting international standards relevant to critical infrastructure will help harmonize approaches to regulation and enforcement, reducing conflicts and improving cooperation.
  • Capacity Building: Investing in research and development and building capacity in emerging technologies such as artificial intelligence (AI), drones, and space is crucial. G20 countries should support low- and middle-income nations in accessing research and technologies. Additionally, countries should respond to requests for assistance from states whose critical infrastructure has been affected, and promote the application of certified security technologies based on international standards.
  • Multistakeholder Approach: A multistakeholder commitment is vital to protecting critical information infrastructure. Governments, technology companies, and civil society groups should collaborate to share and analyze critical infrastructure information, prevent attacks, and respond to damage. Awareness should be raised to ensure stakeholders understand the nature and extent of critical information infrastructure and their respective roles in protecting it.
  • National Laws: G20 countries should incorporate the principles and norms for protecting critical infrastructure into their national laws. This will help create a culture of enforcement and cooperation at both the national and international levels.
  • Institutional Mechanism: Establishing an institutional mechanism for continuous research and the development of new standards for protecting critical infrastructure is essential. Drawing lessons from initiatives like the Christchurch Call, public-private partnerships can play a crucial role in establishing a global order for a safe cyberspace.

Conclusion

  • The protection of critical information infrastructure is of paramount importance in today’s interconnected world. The G20, with its representation of major economies and commitment to international cooperation, plays a crucial role in developing global norms for safeguarding critical infrastructure. By establishing a common understanding and definition of critical information infrastructure, the G20 can facilitate discussions and build consensus among member countries.

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Digital Public Infrastructure (DPI): New Backbone of India’s Economy

 

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G20 : Economic Cooperation ahead

India’s Leadership of G-20 and SCO: Challenges and Realities

Note4Students

From UPSC perspective, the following things are important :

Prelims level: India's presidency of international groupings

Mains level: Current geopolitical climate, India's g20 presidency, challenges and way ahead

Central Idea

  • India’s year-long presidency of the G-20 and leadership of the Shanghai Cooperation Organization (SCO) should not create unrealistic expectations about the dividends India can reap from these summits. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. The need for India is to proceed with caution during its presidency.

Overview of the current geopolitical climate

  • Tensions and distrust between the US-led camp and China/Russia-led camp pose a threat of global conflict.
  • China is on a major diplomatic-cum-strategic offensive across Asia, particularly in West Asia, and is flexing its naval and military muscle in the East and Southeast Asian seas.
  • India is facing challenges due to China’s offensive and its efforts to widen the arc of conflict with India.
  • The situation in Ukraine is fraught, with the US and its allies providing advanced weaponry and training to Ukrainian troops, while Russia is receiving support from its allies.
  • India’s ties with Russia are not necessarily anchored in defense cooperation, and India is looking more to the West, especially the US, for state-of-the-art weaponry.
  • India needs to proceed with caution while holding the presidency of the G-20 and the SCO and balance the contradictory demands of the two institutions and the Global South.

Reasons for the distrust between the two camps; United States and China/Russia

  • Economic competition: The US and China are in a race for economic and technological supremacy, with both countries vying for dominance in fields such as artificial intelligence, 5G networks, and cybersecurity. This has led to tensions between the two countries.
  • Military competition: The US and China are also in a race for military supremacy, with both countries investing heavily in their armed forces and developing advanced weapons systems. This has led to concerns about a potential arms race between the two countries.
  • Territorial disputes: China has territorial disputes with several countries in the region, including India, Japan, Vietnam, and the Philippines. This has led to tensions and concerns about China’s expansionist policies.
  • Human rights issues: The US and other Western countries have criticized China and Russia for their human rights records, including issues such as the treatment of Uighur Muslims in China and the treatment of political dissidents in Russia. This has led to tensions between these countries and the West.
  • Political influence: The US has accused China and Russia of attempting to interfere in its political processes, including the 2016 US presidential election. This has led to concerns about the countries’ intentions and their influence in other countries.
  • Strategic competition: The US and China/Russia have differing visions for the international order, which has led to strategic competition and tensions between them. The US seeks to uphold the current order, while China and Russia seek to challenge it and establish a new order that reflects their interests and values.
  • COVID-19 pandemic: The COVID-19 pandemic has further exacerbated tensions between the US and China, with both countries blaming each other for the outbreak and its spread.

Issues for India specifically with China

  • Border disputes: India and China have long-standing border disputes, which have led to multiple conflicts over the years. The recent clashes in the Galwan Valley in June 2020 resulted in the deaths of Indian and Chinese soldiers and have further escalated tensions between the two countries.
  • China’s aggressive behavior: China’s assertive stance and expansionist policies in the South and East China Seas, as well as its attempts to limit India’s influence in the Indian Ocean Region, have led to tensions between the two countries.
  • China’s regional initiatives: China’s regional initiatives such as the China-Pakistan Economic Corridor (CPEC) and the China-Indian Ocean Region Forum are of concern to India as they may limit India’s strategic and economic interests in the region.
  • The Quad: China sees India’s partnership in the Quad (an informal strategic grouping of India, Australia, Japan, and the US) as a threat to its regional ambitions, and has openly criticized the grouping.
  • Cyber warfare and hybrid tactics: India is also concerned about China’s ability to engage in cyber warfare and hybrid tactics, including the adoption of cyber tactics and the ‘politics of water’ by re-directing the Himalayan rivers.

Other turmoil’s in India’s immediate neighborhood

  • Afghanistan: The situation in Afghanistan appears to be steadily worsening and is now beginning to affect nations on its periphery. India has lost all traction with the Taliban in Afghanistan.
  • Pakistan: The relations between India and Pakistan are strained due to various reasons, including cross-border terrorism.
  • Sri Lanka: The political situation in Sri Lanka has been unstable in recent years, and it has caused concerns for India.
  • Nepal: The political situation in Nepal has been unstable in recent years, with frequent changes in government and disagreements over the new constitution. India has also had strained relations with Nepal over various issues, including border disputes.
  • Myanmar: The military coup in Myanmar in February 2021 has led to widespread protests and violence, causing concerns for India’s security in its Northeast region as well as affecting India’s strategic interests in the region.

Way ahead

  • Identifying commonalities: India should focus on identifying areas of commonality between the G-20, the SCO, and the Global South, such as sustainable development, climate change, and economic cooperation, and work towards promoting these goals in each forum.
  • Prioritizing issues: India should prioritize the issues that are most important to its national interests, such as regional security and economic development, and work towards finding solutions that are mutually acceptable to all parties.
  • Engaging with all parties: India should engage with all parties in each forum, including the major powers, to ensure that its voice is heard and its interests are taken into account.
  • Building coalitions: India should work towards building coalitions with like-minded countries within each forum, such as other developing countries, to promote its interests and priorities.
  • Developing strategic partnerships: India should develop strategic partnerships with key players in each forum, such as China and Russia in the SCO, to promote regional stability and cooperation.

Conclusion

  • India needs to be aware of the persisting challenges it faces, tone down the high expectations being generated of reaping a rich dividend from helming the G-20 and the SCO, and proceed with caution. It must chart a course that balances the contradictory demands of the G-20 and the SCO and even more so that of the Global South. India should not claim to have attained its goal of being a global power, as there are many obstacles that have to be overcome before India can achieve its predetermined goal.

Mains Question

Q. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. In light of this discuss the issues for India specifically with China and how other turmoil’s in immediate neighborhood compounding the problems for India.

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India could lead the G20 agenda in a unique way

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G20 : Economic Cooperation ahead

SAI20 and India’s Presidency of G20

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SAI20 engagement group and India’s presidency

Mains level: SAI20 and CAG's leadership and sustainable economic growth

SAI20

Central Idea

  • Under India’s presidency, the G20 leaders will be focusing on collective progress, equity, and inclusive growth, with the summit theme of One Earth, One Family, One Future. India’s commitment to green development, circular economy, and lifestyle behavior changes aim to achieve the 2030 Sustainable Development Goals. The Comptroller & Auditor General of India (CAG) will chair SAI20, the Engagement Group for Supreme Audit Institutions (SAls) of G20 countries in Goa in June.

Top Priority areas for SAI20 deliberations Under India’s presidency

  • The Comptroller & Auditor General of India (CAG) will chair SAI20 in Goa in June this year.
  • Two priority areas have been selected for SAI20 deliberation:
  1. Blue economy
  2. Responsible Artificial Intelligence

What is SAI20?

  • SAI20 stands for Supreme Audit Institutions (SAIs) of G20 countries.
  • It is a forum where SAIs from G20 countries can engage with each other to share their experiences and expertise in auditing public policies and governance practices.
  • The group meets annually to discuss important issues related to public auditing and to develop joint initiatives to promote good governance and accountability in their respective countries.

What is Blue Economy?

  • Blue Economy is defined by the World Bank as the Sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ecosystem.
  • Gunter Pauli’s book, The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
  • The UN first introduced blue economy at a conference in 2012 and underlined sustainable management, based on the argument that marine ecosystems are more productive when they are healthy. In fact, the UN notes that the Blue Economy is exactly what is needed to implement SDG 14, Life Below Water.
  • The term ‘blue economy’ includes not only ocean-dependent economic development but also inclusive social development and environmental and ecological security.

Key functions and significance of Supreme Audit Institutions (SAIs)

  • Independent audits: SAIs conduct independent audits of government finances and operations to ensure that public funds are being used in accordance with the law, and that government agencies are operating effectively and efficiently.
  • Promoting transparency and accountability: SAIs promotes transparency and accountability by making audit reports publicly available, and by providing information to the public about government spending and operations.
  • Improving governance: By identifying weaknesses and inefficiencies in government operations, SAIs can help to improve governance and promote more effective use of public resources.
  • Supporting the legislative branch: SAIs supports the legislative branch by providing information and analysis that can help lawmakers make informed decisions about government programs and policies.
  • Ensuring compliance with laws and regulations: SAIs ensure compliance with laws and regulations by reviewing government operations and financial statements to ensure that they comply with applicable laws and regulations.
  • Fostering international cooperation: Through international organizations such as the International Organization of Supreme Audit Institutions (INTOSAI), SAIs collaborates and share best practices with their counterparts in other countries to promote good governance and accountability globally.

Facts for prelims

What is Compendium of Asset Accounts of Natural Resources?

  • The Compendium of Asset Accounts of Natural Resources is a comprehensive report prepared by the Comptroller and Auditor General of India (CAG) in line with the United Nations system of Environmental and Economic Accounts.
  • It is the first-ever country-wide compendium of natural resource accounting methodologies and provides a guide for the Indian government to utilize natural resources optimally.
  • The report covers various aspects of natural resources such as forests, minerals, water, and land, and includes accounts of physical quantities, values, and transactions related to these resources.
  • The main objective of the compendium is to improve the management of natural resources and promote sustainable development.

SAI20

How CAG can lead the SAI20 engagement group?

  • Setting the agenda: The CAG can set the agenda for SAI20 deliberations, identifying priority areas for discussion and ensuring that they align with the broader goals of the G20 and the United Nations.
  • Providing technical expertise: The CAG can provide technical expertise in auditing and public finance management, which can help other SAIs in the group to develop their capacity and improve their performance.
  • Developing audit toolkits: The CAG can take the lead in developing audit toolkits, which can help SAIs in the group to assess development in coastal stretches, track marine water quality, and promote sustainable development.
  • Building consensus: The CAG can work towards building consensus among SAIs in the group, promoting constructive dialogue and agreement on how to improve auditing of performance in specific areas of ocean-based activities.
  • Strengthening accountability: The CAG can use SAI20 to promote transparency, accountability, and good governance in ocean-based activities, which can help ensure that economic growth benefits are shared fairly across generations.

Conclusion

  • The toolkits being prepared by SAI20 under the leadership of the CAG of India will be presented at the SAI20 Engagement Group meet, which will provide a unique opportunity for constructive dialogue and agreement to improve auditing of performance in specific areas of ocean-based activities. This collaborative effort would not only build capacity for auditors across SAI20 member countries but also help regional auditing communities by providing a common and replicable auditing tool.

Mains Question

Q. The Comptroller & Auditor General of India (CAG) will chair SAI20 (Supreme Audit Institutions) of G20 countries this year. In this light discuss the role of SAI 20 and How CAG can lead the engagement group for sustainable economic growth?

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G20 : Economic Cooperation ahead

Digitalizing Climate-Smart Agriculture: Framework for G20 Countries

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Initiatives for Climate smart agriculture

Mains level: Climate-smart agriculture, digitalization, role of G20 and way ahead

Agriculture

Central Idea

  • Climate-smart agriculture (CSA) is a part of India’s and the G20 countries’ Sustainable Development Goals (SDGs) vision. It is a complex, mega-scale challenge. The objective of CSA is to optimise a country’s agriculture productivity, resilience, and emissions in response to climate change (long-term, irreversible changes in temperature, precipitation, humidity, pressure, and wind). The G20 can play a key role in addressing the challenge of climate-smart agriculture

What is Climate-smart agriculture (CSA)?

  • Sustainable agricultural practice: Climate-smart agriculture (CSA) refers to the sustainable agricultural practices that help to increase food production and farmer incomes, improve resilience to climate change, and reduce greenhouse gas emissions.
  • CSA aims to achieve three goals simultaneously: (1) sustainably increasing agricultural productivity and incomes, (2) adapting and building resilience to climate change, and (3) reducing and/or removing greenhouse gas emissions, where possible.
  • It involves a combination of strategies, technologies, and policies that are tailored to the specific needs and conditions of each country’s agriculture sector.

Challenges for Climate-smart agriculture (CSA)

  • Complex and multi-dimensional: CSA is a complex and multi-dimensional challenge that requires integrated solutions, which may be difficult to implement and require significant investments.
  • Lack of awareness and knowledge: Many farmers are not aware of the benefits of CSA and may not have the knowledge or skills to implement it effectively.
  • Access to finance: Financing for CSA practices may be limited, especially for smallholder farmers who may lack collateral or access to credit.
  • Policy and institutional constraints: Policies and institutions may not be aligned to support the adoption and scaling up of CSA practices.
  • Technical and technological challenges: CSA requires the use of appropriate technologies and practices, which may not be available or accessible in some regions.
  • Climate change impacts: The impacts of climate change, such as droughts, floods, and other extreme weather events, may negatively affect the productivity and resilience of agricultural systems, making it difficult to implement CSA practices.
  • Data and information gaps: There may be gaps in data and information on the impacts of CSA practices, making it difficult to assess their effectiveness and scale them up.

G20’s role in addressing these challenges

  • The G20 must play a key role in addressing the challenge of CSA by adopting the ontological framework, method, and recommendations to set the agenda for research, policy, and practice.
  • The G20 must constitute a committee to formulate a systemic agenda for systematic research, policies, and practices for the digitalisation of CSA in a country using the ontology.
  • The Think20 Engagement Groups provide research and policy advice to the G20 and are ideal forums to develop the ontological framework as the G20 presidency rotates between the member countries each year.
  • The ontology of CSA must be adopted globally as a framework for all G20 countries by adapting the crop and region taxonomies to each country.
  • The G20 committee must help countries collaborate in their efforts, coordinate their policies, and communicate their learnings.
  • The G20 must set the trajectory for the digitalisation of CSA within the G20 and globally and must provide a ‘map’ for the global effort.

Facts for prelims

Initiatives

Description

National Innovations in Climate Resilient Agriculture (NICRA) A network project launched by the Indian Council of Agricultural Research (ICAR) in 2011 to enhance resilience of Indian agriculture to climate change
Soil Health Card Scheme Launched in 2015 to provide farmers with information on the nutrient status of their soil and recommend appropriate soil health management practices
Pradhan Mantri Fasal Bima Yojana Launched in 2016 to provide farmers with insurance coverage and financial support in the event of crop losses due to adverse weather conditions
Paramparagat Krishi Vikas Yojana Launched in 2015 to promote organic farming practices in India and reduce the use of chemical fertilizers and pesticides
National Mission for Sustainable Agriculture (NMSA) Launched in 2010 to promote sustainable agriculture practices in India and enhance agricultural productivity and income of farmers
Rashtriya Krishi Vikas Yojana Launched in 2007 to support agricultural development in India through the provision of financial assistance for various agricultural activities
National Agriculture Market (e-NAM) Launched in 2016 to create a unified national market for agricultural commodities in India through the use of technology and digital platforms
Kisan Credit Card Scheme Launched in 1998 to provide farmers with access to affordable credit for agricultural and related activities
Pradhan Mantri Krishi Sinchai Yojana Launched in 2015 to promote efficient use of water resources in agriculture and enhance water use efficiency in farming
Zero Budget Natural Farming (ZBNF) A farming practice that aims to eliminate the use of synthetic inputs in agriculture and promote natural farming techniques

Recommendations to the G20

  1. Outcome Management:
  • Productivity: Encourage the adoption of sustainable soil management practices, provide subsidies and financial incentives for efficient irrigation techniques, and invest in R&D of improved seed varieties.
  • Resilience: Promote crop diversification, develop a comprehensive risk management strategy, and support agroforestry practices.
  • Emissions Management: Develop and implement policies that promote reduced tillage practices, provide financial incentives and support for the adoption of renewable energy technologies, and develop and implement regulations and standards for sustainable livestock management practices.
  1. Regional Management: Utilise digitalisation tools and technologies to effectively differentiate CSA management across regions in India, gather real-time data and information on regional variations, deliver customised and region-specific extension services to farmers, optimise resource use, and facilitate stakeholder engagement and collaboration.
  2. Crop Management:
  • Differentiation of CSA management across crops: Identify the unique agro-ecological and socioeconomic conditions of each crop and design region-specific policies and programmes that promote CSA practices and technologies.
  • Integration of CSA management across crops: Promote the use of integrated crop management practices that focus on optimising resource use, reducing greenhouse gas emissions, and enhancing productivity across multiple crops.
  • Precision crop management: Adopt precision agriculture techniques that utilise real-time data and information to optimise resource use and increase productivity.
  1. Digital Semiotics Management:
  • Collect and analyse weather data: India has a vast network of weather stations across the country that collect data on temperature, precipitation, humidity, pressure, and wind fields. This data can be used to analyse weather patterns and identify trends that affect crop growth and yield. Machine learning algorithms can be used to process the data and provide real-time insights to farmers on weather forecasts, pest and disease outbreaks, and optimal planting and harvesting times.
  • Develop crop-specific models: India has a diverse range of crops grown across different regions, each with unique requirements for temperature, precipitation, and other climatic factors. Crop-specific models can be developed using data and information on climate
  • Promote precision agriculture: Precision agriculture involves the use of digital technologies such as sensors, drones, and satellite imaging to monitor crop health and growth, and provide real-time recommendations to farmers. By incorporating weather data and information into precision agriculture technologies, farmers can make data-driven decisions that are tailored to the local climatic conditions.
  • Build farmer capacity: To effectively use data and information on climate variability, farmers need to have the skills and knowledge to interpret and apply this information to their farming practices. Training programmes and extension services can be developed to build farmer capacity in using digital tools and interpreting weather data. These programmes can be designed to be accessible and affordable to all farmers, including smallholder farmers.

Agriculture

Conclusion

  • The digitalisation of CSA requires a roadmap. Addressing the challenge of CSA is a prerequisite to meeting the challenge of food security, and digitalisation is essential to this task. The G20 must set the trajectory for the digitalisation of CSA within the G20 and globally and must provide a map for the global effort to achieve the Sustainable Development Goals vision.

Mains Question

Q. What do you understand by mean Climate-smart agriculture (CSA)? Discuss the challenges for CSA and suggest a way ahead for G20 how it can address these challenges?

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G20 : Economic Cooperation ahead

Blue Economy: India’s G20 Presidency Offers An Opportunity

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Blue economy initiatives

Mains level: Blue economy, significance for sustainable development and challenges

Blue Economy

Central Idea

  • The potential of the oceans for the sustainable development of the blue economy is immense and the initiatives taken by the Government of India towards achieving it demonstrate India’s commitment to building a sustainable future for its marine resources and the global community. India’s G20 presidency provides an opportunity to promote collective action for the transition.

What is Blue Economy?

  • Blue Economy is defined by the World Bank as the Sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ecosystem.
  • Gunter Pauli’s book, “The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
  • The UN first introduced “blue economy” at a conference in 2012 and underlined sustainable management, based on the argument that marine ecosystems are more productive when they are healthy. In fact, the UN notes that the Blue Economy is exactly what is needed to implement SDG 14, Life Below Water.
  • The term ‘blue economy’ includes not only ocean-dependent economic development but also inclusive social development and environmental and ecological security.

The Potential of the Oceans

  • The oceans offer vast opportunities for the prosperity of our planet, with 45% of the world’s coastlines and over 21% of the exclusive economic zones located in G20 countries.
  • They are reservoirs of global biodiversity, critical regulators of the global weather and climate, and support the economic well-being of billions of people in coastal areas.

Facts for prelims: Government Initiatives

  • The Government of India has launched several initiatives to promote the development of a blue economy, such as
Initiative Description
Sagarmala initiative A program launched in 2015 to promote port-led development and boost the country’s maritime sector. It aims to modernize ports, improve connectivity and logistics, and promote coastal community development.
Shipbuilding Financial Assistance Policy A policy introduced in 2016 to provide financial assistance to Indian shipyards for the construction of ships. It aims to boost domestic shipbuilding and make Indian shipyards globally competitive.
Pradhan Mantri Matsya Sampada Yojana A scheme launched in 2020 to boost the fisheries sector in India. It aims to increase fish production, modernize fishing infrastructure, and create employment opportunities in the sector.
Sagar Manthan dashboard An online dashboard launched in 2018 to track the progress of the Sagarmala initiative. It provides real-time information on project implementation, fund utilization, and other related metrics.
Deep Ocean Mission A program launched in 2021 to explore the deep sea and harness its resources for national benefit. It aims to explore the deep sea, map its resources, develop technologies for deep-sea mining, and promote ocean conservation.
Coastal Regulation Zone notification A regulation introduced in 2019 to manage development activities along India’s coastline. It aims to balance the economic development of coastal areas with the conservation of coastal ecosystems and livelihoods of coastal communities.
  • The government has also taken steps to eliminate single-use plastic and combat plastic pollution, including in the marine environment.

India’s G20 Presidency and the Blue Economy

  • Key priority: India’s G20 presidency has prioritized the blue economy as a key area under the Environment and Climate Sustainability Working Group.
  • Promote sustainable and equitable development: The aim is to promote the adoption of high-level principles for sustainable and equitable economic development through the ocean and its resources while addressing climate change and other environmental challenges.
  • A guide for future G20 presidencies: India’s commitment to prioritizing oceans and the blue economy under its presidency would ensure continued discussions on this crucial subject and pave the way for future G20 presidencies.
  • Communication and collaboration: Effective and efficient ocean and blue economy governance presents a significant challenge, and India’s G20 presidency can build an effective communication with all stakeholders to share best practices, foster collaborations for advancements in science and technology, promote public-private partnerships, and create novel blue finance mechanisms.

Challenges and Responsibility

  • Ambitious efforts by countries to expand their blue economies are threatened by intensifying extreme weather events, ocean acidification, and sea-level rise.
  • Marine pollution, over-extraction of resources, and unplanned urbanization also pose significant threats to the ocean, coastal and marine ecosystems, and biodiversity.
  • The inherent inter-connectedness of oceans implies that activities occurring in one part of the world could have ripple effects across the globe.
  • Therefore, the responsibility of their protection, conservation, and sustainable utilization lies with all nations.

Conclusion

  • India’s G20 presidency offers an opportunity to promote individual and collective actions towards a sustainable blue economy. The stewardship of oceans is an investment that will sustain future generations, and the global community must unite for the well-being of our ocean commons.

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G20 : Economic Cooperation ahead

G20: SUMups To Tackle Global Natural Disasters

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Technology to Tackle Natural Disasters

Mains level: G20, Startups And Technology to tackle natural Disasters

Central Idea

  • The concept of SUMups, a hypothetical bundling of complementary start-ups globally that work on some aspect of managing natural disasters. There are some of the innovative technologies developed by these start-ups and how they can be combined to develop more effective disaster management solutions.

Background: The Rising Frequency and Impact of Natural Disasters Globally

  • Increasing Frequency and Severity of Natural Disasters: Globally, natural disasters have become increasingly common and the severity of their impact is worsening.
  • FAO Report: According to the FAO’s report, there were 360 natural disasters per year in the 2010s that resulted in at least 10 deaths, affected 100 or more people, led to homelessness or injury, and required a declaration of a state of countrywide emergency and an appeal for international assistance.
  • Comparison of Natural Disasters: This number is significantly higher than the 100 events recorded in the 1980s and the 90 events recorded in the 1970s.
  • Frequency of Climate, Weather, and Hydrology-related Disasters: Furthermore, climate, weather, and hydrology-related disasters are becoming more frequent, while geophysical and biological emergencies are not, with the exception of Covid-19.
  • Global Impact of Natural Disasters: The impact of these natural disasters is global, affecting countries across the world in various ways, including forest fires, heat and dust storms, and floods.
  • The Need to Improve Disaster Response and Mitigation Efforts: As a society, it is important to recognize that natural disasters will continue to pose a threat and we need to improve our ability to respond and mitigate their effects.
  • Measures Being Taken to Address the Issue of Natural Disasters: Fortunately, there are measures being taken to address this issue, including research into improving disaster response systems and the development of new technologies to aid in disaster preparedness and relief efforts.

Disaster Prevention Technologies

  • The disaster prevention technologies developed by start-up
  • CERD-AR: CERD-AR developed an Augmented Reality (AR) application that gamifies the animations of disasters and provides disaster prevention drills to prepare people for evacuation and reaction in ultra-realistic settings.
  • A Palo Alto-based start-up One Concern: One Concern built a digital twin of the world by analyzing satellite images to predict natural disasters. The platform combines Artificial Intelligence, Machine Learning (AI/ML), and supercomputers to develop seismic and flood technology for real-time prediction of flooding and assess the risk associated with various events.

Emergency Response and Reconstruction Technologies

  • Garuda Aerospace: Garuda Aerospace deployed drones in Turkey for surveillance in the affected earthquake areas to identify trapped victims.
  • HW Design Labs: HW Design Labs developed IoT innovations that support disaster response teams in planning their operations effectively through deep penetrating ground sensing radars, wireless connectivity solutions, advanced tracking, and navigation services.

Emergency Communication Technologies

  • MyResQR: This start-up provides emergency communication between victims and stakeholders. The smart QR code manages information and triggers SOS during emergencies by enabling first responders like ambulance services, hospital staff, and other emergency response teams.

Way Ahead

  • The SUMups represent an opportunity to combine innovative disaster management technologies from start-ups globally to address the Sustainable Development Goals for the whole world, such as building resilient infrastructure and zero hunger.

Conclusion

  • The Startup20 Engagement Group of G20 can enable many such SUMups that can help deal with the increasing frequency, intensity, and complexity of natural disasters in the future. Sharing ideas and collaborating globally can help us all become better prepared and equipped to tackle these events. The article emphasizes that the sharing of ideas can be a powerful tool for solving complex problems, and the development of SUMups is a step in the right direction for improving disaster management worldwide.

Mains Question

Q. What is the concept of SUMups? Discuss the innovative technologies developed by start-ups in the areas of disaster prevention.


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G20 : Economic Cooperation ahead

G20: Multilateralism and India’s Diplomacy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20

Mains level: India's Multilateralism amidst the global power struggle

G20

Central Idea

  • The inability of the G20 finance ministers to agree on a joint statement last week points to an important reality about multilateralism. When great powers are at peace with each other, multilateralism has reasonable chances of success; but when they are at each other’s throats, the room for global cooperation shrinks.

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What is multilateralism?

  • Multilateralism is an approach in which multiple countries or parties come together to address and solve common problems, through negotiations and cooperation, while respecting each other’s sovereignty and interests.
  • In international relations, multilateralism can take different forms, such as multilateral agreements, treaties, and organizations.
  • The United Nations (UN) is an example of a multilateral organization, which brings together almost all countries in the world to promote peace, development, and cooperation.

Multilateralism and Major Powers: From Cooperation to Conflict

  1. The Cold War and Multilateralism:
  • Lack of cooperation during the Cold War, except in a few areas such as nuclear arms control
  • The formation of the UN after the Second World War with the expectation of great power cooperation.
  • Allies turning into adversaries and sharp division of the world into competing economic and military blocs.
  1. Post-Cold War Multilateralism:
  • Collapse of the Soviet Union in 1991 led to an expansive phase of multilateralism
  • Great power cooperation at the UN and creation of the WTO
  • The financial crisis of 2008 and the rallying of the top 20 economies to stabilise the global economy.
  1. Current State of Multilateralism
  • World of shared interests among top nations no longer exists
  • Simmering political conflict between Russia and the West, possibility of military conflict between the US and China.
  • Consensus on key issues eludes the G20 today
  • Rising geopolitical conflict mirrored in the economic domain
  • Efforts by the US and China to reduce their massive economic exposure to each other
  • Economic conflict enveloping emerging technologies, especially in the digital domain.

India’s Multilateral Diplomacy amidst the Great Power Conflict

  • Multilateralism and G20: As the current chair of the G20 in 2023, India has to steer the group amidst the renewed rivalry between the major powers. Reducing the impact of the political conflicts on the G20 would be a diplomatic achievement for India.
  • Delhi’s Troubled Relationship with Beijing: India is part of the great power rivalry with China. The conflict is not just about military assertiveness but also deep differences on multilateral issues
  • Need to Balance China: India cannot stand apart from the great power conflict while representing the Global South at the G20. India has to balance its cooperation and contestation with China in various multilateral forums.
  • India’s Participation in Multiple Multilateral Institutions: India’s approach to multilateralism has evolved from a focus on the UN and NAM to participation in multiple institutions including the Quad and the G7. It is also working to strengthen its coalition with the Global South.

Conclusion

  • The diversity of India’s multilateralism reflects the structural imperatives of global politics. Delhi must cooperate with adversaries for regional and global problem-solving while wrestling with rivals and collaborating with like-minded countries. Cooperation and contestation balance depend on the issue and context.

Mains Question

Q. What do you understand by Multilateralism? India is continuously expanding its multilateral approach. Discuss.

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G20 : Economic Cooperation ahead

Startup20 Engagement Group On India’s Proposal

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Startup20 Engagement Group

Mains level: Startup20 Engagement Group , Startup Ecosystem In India

Engagement

“A small group of determined and like-minded people can change the course of history.”-M.K. Gandhi

Central Idea

  • By agreeing to India’s proposal to create the Startup20 Engagement Group, the only new group by which G20 has turned itself into an ambidextrous institution, one where both large corporations and startups have an equal voice in taking the economies forward. In the new architecture, while the existing B20 Engagement Group continues its focus on corporations, the Startup20 takes on the policy issues concerning the global startup ecosystem, with the necessary linkages between the two groups.

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What is meant by ambidexterity?

  • Ambidexterity is the ability to use both hands with equal skill and ease.
  • In the context of organizations, it is the ability to simultaneously pursue both exploratory and exploitative strategies. This means being able to balance the need for innovation and new opportunities with the need for efficiency and optimization of current operations.
  • For example, Indian IT services companies like TCS and Infosys are investing in areas like artificial intelligence, blockchain, and the IoT, even as they continue to deliver traditional IT services to their clients.

What is B20 Engagement Group?

  • Official G20 dialogue forum representing the global business community: The B20 (Business 20) Engagement Group is a forum for international business leaders from the G20 countries.
  • Established in 2010: It is among the most prominent Engagement Groups in G20, with companies and business organizations as participants.
  • A single voice for the entire G20 business community: The B20 leads the process of galvanizing global business leaders for their views on issues of global economic and trade governance and speaks in a single voice for the entire G20 business community.
  • Aim is to provide recommendations: The group’s aim is to provide recommendations to the G20 on issues such as economic growth, trade, investment, digitalization, sustainability, and job creation.
  • Platform for different stakeholders: The B20 is one of several engagement groups, which also include groups representing civil society, labor, think tanks, and youth, that provide a platform for different stakeholders to share their views and insights with the G20.
  • B20 Secretariat: Confederation of Indian Industry (CII) has been designated as the Business 20 (B20) Secretariat for the India’s G20 Presidency.

What is Startup20?

  • Initiated under India’s G20 Presidency: The Startup20 Engagement Group has been initiated under India’s G20 Presidency in 2023.
  • Aims to support Startups: The group aims to create a global narrative for supporting startups and enabling synergies between startups, corporates, investors, innovation agencies and other key ecosystem stakeholders.
  • Three taskforces: The engagement group comprises of three taskforces, namely Foundation & Alliance, Finance, and Inclusion & Sustainability, where delegates will come together to discuss efficient policy frameworks to promote scaling up of startups in the G20 nations.

How these taskforces will work?

  1. Foundation and Alliances Taskforce:
  • Promotes consensus-based ecosystem: The Foundation and Alliances Taskforce will work to harmonize the global Startup ecosystem through consensus-based definitions and promote a global community of knowledge sharing among the Startup ecosystems to explore opportunities.
  • Help to bridge the knowledge gaps: It will also bridge the knowledge gap between the Startup ecosystems of G20 member countries and emerging economies through partnerships to enable more industry players across G20 nations to work with Startups and concrete solutions.
  • To create supportive policies and point of contact: It will aim to create supportive policies for industry players and government organizations to work with Startups and provide points of contact for the participating G20 countries sustained collaboration.
  1. The Finance Taskforce:
  • To provide financing and investment platforms: The finance taskforce will aim to increase access to capital for Startups by providing financing and investment platforms specifically for early-stage Startups to broaden the array of financial instruments available to Startups.
  • Networking opportunities: It will also create pitching and networking opportunities for Startups with the global investor community.
  • Best practices for funding ecosystem: It will work to provide a framework built upon best practices for global investors to fund Startups across G20 member nations, helping build suggestive frameworks that could be implemented in emerging ecosystems for building investment capabilities.
  1. Taskforce for Inclusion and Sustainability
  • Women led startups and community inclusive: For Inclusion and Sustainability, the roadmap involves increasing support for women led Startups and organizations; promotion of Startups working on making communities more inclusive and to promote Startups working on SDGs in areas of global interest.
  • Encouraging investors to invest in startups built upon sustainable practices: This Task Force aims to enable more investors to invest responsibly in Startups built upon sustainable practices and to encourage mentorship support to the Startup ecosystems of the G20 member countries and emerging economies.

Conclusion

  • Some of the most pressing challenges facing the world today require innovative solutions at scale. The need for solutions to global problems such as climate change, food security, and energy security is urgent. However, by leveraging global ambidexterity and taking advantage of the G20’s new architecture of B20 and Startup20, we can be optimistic about our ability to systematically solve these problems. With deliberate efforts and focused action, we can create a more sustainable and prosperous future for all.

Mains question

Q. What is Startup20 engagement group initiated under India’s G20 presidency? How this framework will work to boost startup ecosystem globally?

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G20 : Economic Cooperation ahead

Green transition during India’s G20 presidency

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Green transition, India's G20 presidency

transition

Central Idea

  • Energy transitions are central to the G20 agenda. In 2023, during India’s presidency, the geopolitics and governance of energy have become immensely challenging, as the shift from fossil fuels to renewable energy, concerns about energy security and, in many cases, the pressure on keeping financial commitments made related to tackling climate change have become complicated.

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transition

What is mean by Green Transition?

  • Moving away from fossil fuels: The Green transition involves shifting away from traditional sources of energy that contribute to climate change, such as coal and oil.
  • For example: In 2021, the Indian government announced plans to stop the import of coal by 2024 and to reduce the country’s reliance on coal for power generation
  • Embracing renewable energy: The transition involves embracing cleaner and more renewable sources of energy, such as solar, wind, and hydropower.
  • Examples: In 2021, the Gujarat government announced plans to set up a 500 MW solar park, which is expected to be the world’s largest solar park upon completion. In 2021, Google announced plans to power all of its data centers and offices using carbon-free energy sources by 2030.
  • Reducing carbon emissions: The Green transition involves reducing carbon emissions from transportation, industry, and other sectors.
  • For instance, “Switch Delhi campaign”: In 2020, the Delhi government launched the Switch Delhi campaign to promote electric vehicles and reduce air pollution in the city.
  • Promoting sustainable lifestyles: It involves promoting sustainable lifestyles and behaviours, such as reducing waste and conserving resources.
  • India’s LiFE example: The LiFE (Lifestyle for Environment) campaign is an initiative launched by the Indian to promote sustainable lifestyles and reduce the environmental impact by taking actions at individual level.
  • Encouraging sustainable innovation: The Green transition involves encouraging innovation in sustainable technologies and practices.
  • For instance: In 2021, The Government of India announced plans to set up a National Hydrogen Energy Mission to promote the use of hydrogen as a clean energy source in various sectors.

Energy Poverty at present

  • Increasing energy poverty in Sub-Saharan Africa: The International Energy Agency counts 20 million more people worldwide without electricity now compared to 2021. Predictably, the worst-affected are in sub-Saharan Africa, which is back to its lowest rate of electrification since 2013.
  • Inadequate energy supply in Europe: In Europe, the number of people experiencing inadequate energy supply has risen to 80 million from 34 million in 2021.
  • Middle-income countries face fuel and electricity shortages: Even middle-income countries in Africa, South America and Asia face fuel and electricity shortages and high levels of inflation.
  • Reduced availability of energy impact on economies and public health: Reduced availability of energy is hurting economies as industries close, and is impacting public health as safe fuels such as cooking gas become expensive.
  • Balance of payments crisis and high energy costs: A number of countries also face a balance of payments crisis, partly driven by high energy costs.
  • Global impact on sustainable development goals (SDG): Energy poverty is global and widespread, impacting technology implementation, industry and SDGs all of which are also G20 goals.

transition

Suggestions to produce swift results for India’s G20 presidency

  • Financial support as a cornerstone of climate action and energy transition: The G20 should prioritize providing financial support to those in need as a fundamental aspect of climate action and energy transition under the UNFCC Protocol, as emphasized and reinforced in the Paris Agreement and successive Conference of the Parties (COPs).
  • Galvanizing the pursuit of financial support: Although financial support to developing countries has increased over time, it still falls short of what is necessary for a successful transition to a low-carbon economy. The G20 has the potential to mobilize efforts and drive momentum towards securing the funding required for climate action and energy transition.
  • Public Financing alone is insufficient: Public financing alone will not be sufficient to address the current energy challenges faced globally. Private finance is necessary to complement public finance.
  • Innovative approaches to climate financing: Innovative approaches are required to address the financing needs of climate action. These approaches could include blending finance with public and private capital to create a unified effort. Additionally, impediments like exchange rate risks must be addressed to ensure smooth financing of projects.
  • Creation of a Global Climate Finance Agency to better integrate and drive global agenda: The agency could be mandated to lower hedging costs to mitigate a key risk faced by developers of green projects and insure major clean energy projects from potential losses due to government utilities failing to meet supply and payment obligations, which is a common issue in developing countries like India.
  • Harnessing power of public procurement system: The G20 can use the public procurement system to speed up energy transitions and drive significant change. Effective public procurement can ensure funding and adaptation at scale, which has been proven through abundant evidence.

transition

Conclusion

  • The G20 should encourage financial centres and business communities, to create new business models and technologies for energy transitions. This will require cooperation and collaboration between financial centres, including through green financing and economy taxonomies. By doing so, the G20 can accelerate climate transition and energy security for all.

Mains question

Q. Briefly explain the concept of green transition. How India’s g20 presidency can lead the world towards Green transition? Discuss.

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G20 : Economic Cooperation ahead

India could lead the G20 agenda in a unique way

Note4Students

From UPSC perspective, the following things are important :

Prelims level: particulars of G20

Mains level: G20 and India's opportunity and global governance

G20

Context

  • The G20, or Group of 20, has emerged as the primary venue for international economic and financial cooperation. India assumed the presidency of the powerful grouping G20 on 1 December 2022, symbolising the motto and showcasing its philosophies of “Vasudhaiva Kutumbakam”, or “One Earth, One Family, One Future”.

G20

What One Earth, One Family, One Future suggests?

  • India committed to making India’s year of chairmanship one that will focus on “healing our ‘One Earth’, creating harmony within our ‘One Family’, and giving hope for our ‘One Future’ and LiFE (Lifestyle for Environment).

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What is Troika?

  • The troika means previous, current, and incoming presidency which comprise Indonesia, India, and Brazil, respectively.
  • The troika is leading the global agenda at G20 in the current turbulent economic times.
  • Beyond being a forum for policy discussions, the G20 plays the role of reconciling the irreconcilable.
  • The number of talks and years the group has been together has resulted in a mixed bag of success.

How India should set up a global agenda: Proposed principles

  • Democratising the process of setting the agenda: While setting up the global agenda, it is critical to bring together all the partner nations to understand their priorities. It will ensure diversity, equity, inclusivity, sustainability, transparency, and long-term commitment. This can also help ensure that the domestic policies are aligned and support global priorities.
  • Strike a balance between the needs of developing and developed countries: Since India has a greater responsibility to shoulder, it should not work and seem biased. Similarly, developed nations should instead exercise greater caution with their rich resource pools. To create a win-win scenario rather than a zero-sum game, we must think in terms of multilateralism.
  • Critical to focus on determined priorities: It is critical to prevent the G20 from suffering as other multilateral forums such as the World Trade Organization (WTO) do from an over-expansion of its mandate. While being ambitious in their approach, it is crucial to set defined, limited long-term priorities.
  • Set concrete, measurable, and tangible goals: Measurable outcomes with short, medium, and long-term objectives are crucial. Financial considerations must be made in addition to ensuring inclusivity, sustainability, and accountability.
  • Prevent reinventing the wheels: To encourage faster mutual growth, it is necessary to prevent duplication of efforts. It is important to prevent duplication of existing international institutions, fragmentation of financial resources, and the weakening of the coordinating role of the existing multilateral organisations. The ‘cooperative and collaborative frameworks are key to successful outcomes.
  • Prejudice-free dialogues are required to promote solidarity: Prejudices on international platforms can pose a threat to global security. Dialogue as an antidote is a force for conflict prevention, management, and resolution.
  • Mutual safeguarding is necessary: Mutual safeguarding from disguised elements of neo-colonialism and hegemony is essential for cutting through the socio-cultural and geopolitical barriers between the Global South and the Global North.
  • The principle of Antyodaya (rise of the last person:): The global lens must capture every aspect of a community through inclusive dialogues, from the most marginalised to the most privileged. It is crucial to set the vertical and horizontal plans on a global and national level with the ‘last person standing in line’ in mind.

G20

India’s current global Image

  • India for global governance: While India’s successes are being assessed and unprecedented hopes are being expressed about our future, the country’s trust in the global governance architecture is evident through several examples from the recent past, like the roll-out of COVID-19 vaccines in India as well as remarkable vaccine diplomacy initiative ‘Vaccine Maitri’.
  • Fastest growing economy: With one of the world’s largest and fastest-growing economies, the country has earned its stripes during tough external and internal times.
  • India among the tops in global climate change performance index: Similarly, India has been ranked among the top five countries under the global Climate Change Performance Index. Moreover, it has taken the lead in spearheading the transition towards cleaner energy sources.
  • Social capitalism nature of economy: With its social capitalism, India has earned a geopolitical sweet spot in the world.

G20

Conclusion

  • India can lead the G20 agenda in a unique way the global community has never witnessed. Keeping the essential principles in mind when developing agendas, action-oriented plans, and decisions through collaborative efforts have the potential to yield revolutionary and positive results. The vision of shaping a new paradigm of human-centric globalisation is promising, provided the Global North and South communities provide equal support.

Mains question

Q. India assumed the presidency of the powerful grouping G20 with a motto One Earth, One Family, One Future. In this backdrop how India can set up an agenda for future and not only for a period of presidentship.

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G20 : Economic Cooperation ahead

India’s global superpower ambition and an opportunity to lead the world

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India's G20 presidency, opportunities and challenges

global

Context

  • In September 2014, in his first meeting with President Barack Obama, Prime Minister Narendra Modi talked about making the US a principal partner in the realization of India’s rise as a responsible, influential world power. This was in a way the first time that any Indian prime minister had talked about the country’s ambition to grow into a responsible, influential world power.

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India in World politics

  • India is not new to playing a proactive role in world politics: Right from Independence, India’s leadership had actively pursued an agenda that favoured the interests of developing or less developed countries.
  • India took a form stand against the domination of developed countries: Whether it was the GATT negotiations or the Non-Proliferation Treaty, India took a principled stand and stood up to the policy domination of the developed world.
  • India as a protector of developing world: India’s role as the protector of the interests of the developing world during WTO negotiations has been significant.
  • For instance: Murasoli Maran, as the Minister of Commerce in the Vajpayee government, played a very critical role in preventing developed countries from pushing through their trade and commercial agendas. The UPA government continued that approach, inviting opprobrium and occasional isolation from the interested players. However, that didn’t deter India from opposing agendas that were seen as against the interests of not only its people but also the larger developing world.
  • India added moral dimension to the developing world but seen as obstructionist: India’s significant contribution in all these fora was that it added a moral dimension to the developed world’s monetary vision. However, India, in the process, acquired the image of being a nay-sayer and obstructionist.

global

India’s smart shift in its approach

  • Stated playing proactive role: While standing up for the developing world and zealously upholding its strategic autonomy, India started playing a proactive role in finding solutions.
  • Paris climate summit provided a major opportunity: The Paris Climate Summit in 2015 provided the first major opportunity for India to highlight its new priorities. It played a pivotal role in clinching the climate deal while ensuring that the interests of the developing world are not compromised.
  1. India’s stand in the words of PM Modi: PM PM Modi cogently articulated this stand on the eve of the Summit: “Justice demands that, with what little carbon we can safely burn, developing countries are allowed to grow. The lifestyles of a few must not crowd out opportunities for the many still on the first steps of the development ladder.” India’s efforts resulted in developed countries agreeing to the principle of “common and differentiated responsibility”.
  2. India successfully convinced developed countries for INDCs: India also convinced developed countries to agree to the formulation of not externally imposed targets but “intended nationally determined contributions” or INDCs.
  • India emerged as a powerful player during Covid pandemic response through “Vaccine Maitri”: India’s arrival on the global stage as an important player was further augmented by its constructive response during the Covid pandemic. Besides undertaking the massive exercise of vaccinating its billion-plus citizens, India came to the rescue of more than 90 countries by ensuring a timely supply of vaccines through its “Vaccine Maitri” programme.
  • Commendable economic recovery in post-Covid world: India’s growing importance is conspicuous in many areas. Its post-Covid economic recovery has been commendable, with the World Bank even revising its projections for 2022 GDP growth from 6.5 per cent to 6.9 per cent. The IMF estimated it to be at 6.8 per cent while the rest of the world was projected to grow at 4.9 per cent.

India in a new year

  • Stronger ties with African nations: The India Africa Forum Summit (IAFS), started in 2008 as a triennial event by then Prime Minister Manmohan Singh, met for the third time in 2015 in Delhi. PM Modi took a special interest in cultivating stronger ties with African nations which led to the highest-ever participation in the Summit. It is important to revive the process.
  • India’s crucial role in Russia-Ukraine war: At the Bali G20 Summit, India played a crucial role in ensuring that both Russia and its critics like the US had their say on the Russia-Ukraine war in a dignified way without being interrupted. On its part, India conveyed to the Russian leadership that it was not a time for war. The new year will bring an opportunity before India to play a role in ending the war.
  • Opportunity to set new agenda for global public good: As G20 chair, India has the opportunity to set a new agenda before the world’s most powerful block of nations. In the past, it always worked for the judicious sharing of global public goods. It is time now to undertake similar efforts for global digital and genetic goods.

global

Way ahead

  • India must continue to act as voice of global south: While striving to achieve its ambition, India must not lose sight of the principles that it always championed. It must continue to act as the voice of the Global South.
  • Focus on neighbourhood must increase: India’s diplomatic, strategic and political investments in its neighbourhood and Asia, Africa and Latin America must increase.
  • Attention in ASEAN IOR must grow: With SAARC failing and BIMSTEC remaining a non-starter, India’s attention to the ASEAN and Indian Ocean neighbourhood must grow. India’s Act East policy needs more teeth.
  • India must bring moralist dimensions in new tech developments: India always upheld moralism in global politics. In climate talks, too, the Indian side is resorting to traditional wisdom to achieve global good. India must bring that moralist dimension to new technological developments.
  • India must lead to regulate technologies for humanity’s future: The advent of artificial intelligence and genetic manipulation technologies is going to throw the world into turmoil. If not regulated globally on time, these technologies are going to play havoc with humanity’s future.

Conclusion

  • The country is entering the new year on a buoyant note. The leadership of important multilateral bodies including the G20 and SCO has come into its hands. The new year is thus going to provide India with the opportunity to fulfil its world power ambition. However, opportunities come with challenges. China may try to curtail India’s ambitions by keeping the border tense. India needs to maintain harmonious balance.

Mains question

Q. From wars to the economy to climate, India has become integral to the contemporary global discourse. What will India need to do to fulfil its global superpower ambitions in the new year?

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G20 : Economic Cooperation ahead

Research and Development Scenario in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Research and development and Research Intensity

development

Context

  • US, has retained its global leadership for almost a century since World War I thanks to the culture of innovation backed by a solid base of research and development (R&D). China is challenging the leadership of US based on technology and innovation. If India wants to be a Vishwa guru it must invest in R&D.

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Innovation and missing R&D Investment

  • Engine of growth: Innovation is rightly recognized as an engine for economic growth.
  • Atal innovation Mission: In 2016, the government launched the Atal Innovation Mission (AIM) to create an ecosystem to promote innovation and entrepreneurship in the country.
  • Actual spending is less: All these are steps in the right direction, but the foundation of all this lies in how much India actually spends on R&D, both in absolute terms as well as a percentage of its GDP, in relation to other G20 countries.
  • Sustainable Target: SDG Target 9.5 calls upon nations to encourage innovation and substantially increase the numbers of researchers as well as public and private spending on R&D. Gross domestic expenditure on R&D (GERD) is the proposed aggregate to quantify a country’s commitment to R&D.

What is the scenario of Global Investment in R&D?

  • Institute for Statistics (UIS): According to UNESCO’s Institute for Statistics (UIS) latest report, the G20 nations accounted for 90.6 per cent of global GERD (current, PPP$) in 2018.
  • Increased spending on R&D: Global R&D expenditure has reached a record high of about 2.2 trillion current PPP$ (2018), while Research Intensity (R&D expenditure as a percentage of GDP) has gradually increased from 1.43 per cent in 1998 to 1.72 per cent in 2018.
  • Investment in PPP terms is inaccurate: Though looking at spending in PPP terms is a reasonable metric for welfare measurement in the economy, when it comes to technological prowess in high-end activities of R&D, it all boils down to measuring hard currency in US dollars.

development

Investment in R&D by G20 countries

  • G20 leader in investment: The G20 countries, accounting for 86.2 per cent of the global GDP and over 60 per cent of the global population in 2021, are the leaders in every way.
  • USA spends the Highest: The US leads the G20 by spending $581.6 billion on R&D followed by the European Union ($323 billion), and China ($297.3 billion) in 2018.
  • India spends negligible amount: India lags way behind with a paltry R&D expenditure of only $17.6 billion in 2018. In terms of their relative shares in G20 R&D expenditure, the US is way ahead with 36 per cent, followed by the EU (20 per cent), and China (18 per cent). India’s share is less than 1 per cent of G20 R&D expenditure in dollar terms.

development

Linkages between Research Intensity and Expenditure on R&D

  • Percentage to GDP: While the absolute expenditure on R&D provides a sense of scale, their percentage to the respective GDP provides the research intensity (RI).
  • South Korea Highest RI: It is interesting to note that in 2018 for which the latest information is available, South Korea has the highest RI at 4.43 per cent, followed by Japan (3.21 per cent), Germany (3.09 per cent), the US (2.83 per cent), France (2.19 per cent), China (2.14 per cent) and EU (2.02 per cent). India is ranked 17th in the G20, with a RI of 0.65 per cent (see infographics).
  • Example of Israel: One of the non-G20 countries is Israel, which, while having an R&D expenditure of just $18.6 billion, a population of only 9.3 million and a per capita income of around $51,430, has the highest RI of over 5 per cent. No wonder, Israel is known as a land of innovations, be it in defence or agriculture.

development

What India can learn from Israel?

  • Innovation growth and competition: The innovation system in Israel is a fundamental driver of its economic growth and competitiveness.
  • Active role of government: The government has played an important role in financing innovation, particularly in SMEs, and in providing well-functioning frameworks for innovation, such as venture capital (VC), incubators, strong science-industry links, and high-quality university education.
  • India can emulate Israel: Israel builds a strong case to show that despite being a smaller nation, sustainable growth can be achieved by prioritising investments in R&D. A lesson India can learn.

Mains Question

Q. What is difference between investment in R&D and research intensity? What is the missing part in India’s R&D and innovation ecosystem?

 

 

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G20 : Economic Cooperation ahead

G20: India at Urban20 (U20)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20, U20

Mains level: India's G20 presidency and the future of cities

G20

Context

  • Fifty percent of the world’s population currently lives in urban areas, which is projected to increase by 1.5 times to 6 billion. However, cities continue to face mounting challenges in accommodating the needs of this rapidly expanding population. As a catalyst for global change, what promises can India’s presidency hold for half the world’s urban population?

Background

  • India’s G20 presidency began on December 1. It will be driven by the underlying vision of “Vasudhaiva Kutumbakam”, best encapsulated by the motto “One Earth, One Family, One Future”.
  • G20’s Sustainable Development agenda aligns itself with sustainable actions to meet the goals of the 2030 Agenda.

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G20

What is Urban 20 (U20)?

  • A city diplomacy initiative within G20 ecosystem: Within the G20 ecosystem, a city diplomacy initiative called the “Urban 20” (U20) was launched in December 2017. As one of the formal Engagement Groups under G20, the U20 forum was meant to collectively raise critical urban issues of G20 cities during the G20 negotiations.
  • Special emphasis on cities: U20’s City Sherpas emphasise on the increasing importance of cities (both G20 and non-G20) as a country’s engines of innovation, economic growth, and productivity.
  • Focus on climate change and sustainable development: U20 specifically focuses on climate change, sustainable development, and socio-economic issues in connection with the Sustainable Development Goals.
  • Largely remained a platform of recommendation: Despite U20’s concerted efforts to run parallel to G20, the absence of any written constitution, procedures, or formal agreement has made U20 unable to effectively address the aspirations and concerns of cities. U20 seems to have largely remained a platform for expression and making recommendations without being able to directly influence urban planning or implement policy initiatives.
  • In this backdrop India has a unique opportunity: Within this framework, India now has the unique opportunity to outline and action specific U20 goals to link with the larger objectives of one of the most influential international forums.

How U20 2023 provides an unique opportunity to India?

  • India’s U20 prospect can work towards engaging in meaningful policymaking and investments towards fulfilling the global 2030 Agenda.
  • By mindfully planning the allocation of urban resources and inspiring sustainable practices, India can set a new balanced template. While learning from the best practices of some of the soundest cities,

G20

How India can initiate actions at U20

  • Prioritizing post Covid urban social and emotional wellbeing: In a post-pandemic world, U20 2023 can priorities the role of urban mental health to raise awareness of its bearing as a consequence of an overpowering-built environment Urban amenities must account for the improvement of the overall quality of life and social-emotional well-being.
  • Emphasizing on efficient data and policies: U20 2023 can create a primer for effective data collection, analysis, monitoring, and reporting for timely assessment or urban plans to align with G20 and national agendas. Going further, India must emphasize policies for efficient data use and supporting data governance.
  • Increasing efficiency of digital services and bridging the digital divide gap: Digital literacy in urban India is only at 61 percent, suggesting a pervading low awareness of the government’s e-services. Moreover, gender biases in technology and digital skills lead to a greater gender digital divide suggesting a huge disparity in access to digital services. New regulatory frameworks are needed to encourage research and investment in bridging such gaps.
  • Gender inclusive planning to develop equitable cities: U20 2023 can call for global collaborations to develop equitable cities by engaging in dialogues around gender-inclusive planning. This is not only to benefit women and children but to include representation of diverse marginalised genders and LGBTQ+ persons in the urban planning process.
  • Prioritizing capacity building and training for city planners: It is also essential to highlight the importance of capacity building and training for planners and civic officials about the various sensitivities and impacts of urban development plans. India can bolster global joint discussions around increased investment in urban healthcare facilities.
  • Boosting investment in sustainable energy transition: While delivering on the Paris Agreement and the New Urban Agenda and 2030 Agenda, India can reinforce direct investment in areas such as sustainable energy and mobility transition. For instance, managing the risks of urban flooding in a changing climate has become a global focus area for policymakers.
  • Investing in quality education and skill development: With cities bourgeoning, investing in quality education and skilling has become critical to better prepare for the future of work and jobs for. Policies, across sectors, must support better skilling and training for entrepreneurship. For example, while the PM Employment Generation Programme and other Credit Support Schemes support MSMEs for training the youth and generating employment, we are yet to see their effectiveness and outreach. On the other hand, the rising trend of the gig economy demands innovative policymaking to accommodate the aspirations of the urban youth.
  • Local participation must be enhanced: Most importantly, U20 2023 can reinforce the importance of local-regional involvement for the integration of perspectives at the national and sub-national government bodies as the way forward. Urban Local Bodies (ULBs) can be strengthened further to facilitate basic infrastructure needs, inclusive economic growth and equitable development.

G20

How India can lead?

  • India’s theme of G20 2023 holds the promise of interconnectedness to bring in an attitudinal change through deliberation, partnerships, dialogues, cooperation and knowledge-sharing.
  • India can lead the way for global response and action by setting the stage for newer partnerships and agreements to facilitate community empowerment and social justice at both the local and societal levels.
  • By stressing on equity, inclusivity, sustainability and resilience, U20 2023 will be able to honour its commitment to establish better cities.

Conclusion

  • By exploring the interlinkages and shared issues related to urban planning, India can help pave the way to bring about a global consensus for renewed urban vigour.

 

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G20 : Economic Cooperation ahead

The ‘Global South’ Narrative

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Global South

Mains level: Global South Narrative

south

As India assumed the presidency of the G20 group of countries for 2022 to 2023, EAM S Jaishankar said on December 1 that India would be the voice of the Global South that is otherwise under-represented in such forums.

What is ‘Global South’?

  • The term has since been used multiple times, such as when Jaishankar said of ongoing global conflicts, “polarisation may occur elsewhere, the people who suffer most are the Global South”.
  • ‘Global North’ refers loosely to countries like the US, Canada, Europe, Russia, Australia and New Zealand, while ‘Global South’ includes countries in Asia, Africa and South America.

Behind the binary difference: ‘Global North’ and the ‘Global South’

  • For a long time in the study of international political systems, the method of categorising countries into broad categories for easier analysis has existed.
  • The concepts of ‘East’ and ‘West’ is one example of this, with the Western countries generally signifying greater levels of economic development and prosperity among their people.
  • Eastern countries were considered as being in the process of that transition.

What are other such categorizations?

  • Another similar categorisation is of First World, Second World and Third World countries.
  • It referred to countries associated with the Cold war-era alliances of the US, the USSR, and non-aligned countries, respectively.
  • The idea of the “third” world underlined that it was not only different from the “first” — the capitalist West — but also and the second — the socialist “East”.

Concept behind: World Systems Approach

  • At the centre of these concepts is the World Systems approach introduced by sociologist Immanuel Wallerstein in 1974, emphasising an interconnected perspective of looking at world politics.
  • He said there are three major zones of production: core, peripheral and semi-peripheral.
  • The core zones reap profits, being the owners of cutting-edge technologies – countries like the US or Japan.
  • Peripheral zones, on the other hand, engage in less sophisticated production that is more labour-intensive.
  • In the middle are countries like India and Brazil.

Need for new terms

(1) Global shift of powers

  • In the post-Cold War world, the First World/Third World classification was no longer feasible.
  • This is because when the Communist USSR disintegrated in 1991, most countries had no choice but to ally at some level with the capitalist US – the only remaining global superpower.

(2) Monolithic classification

  • The East/West binary was seen as often perpetuating stereotypical thinking about African and Asian countries.
  • Categorising incredibly diverse countries into a monolith was felt to be too simplistic.
  • Also, the idea that some countries were ‘developed’ while others were not was thought to be too wide a classification, inadequate for accurately discussing concerns.

(3) Issues with Developed vs. Developing

  • Writing in 2014 from the perspective of his organisation’s philanthropic activities, Bill Gates said of the ‘developing’ tag.
  • It found an irony that- any category that lumps China and the Democratic Republic of Congo together confuses more than it clarifies.
  • Some so-called developing countries have come so far that it’s fair to say they have developed.
  • A handful of failed states are hardly developing at all. Most countries are somewhere in the middle.

Emergence of Global South

  • Colonial past: A big commonality between the South countries is that most have a history of colonization, largely at the hands of European powers.
  • No say since de-colonization: Region’s historical exclusion from prominent international organizations – such as from the permanent membership of the UN is intriguing.
  • Consciousness for decision-making: As bodies like the UN and the IMF are involved in major decision-making that affect the world in terms of politics, economy and society, the exclusion is seen by these countries as contributing to their slower growth.
  • Economic emergence: China and India have emerged economically sound in the past two decades.
  • Declining US hegemony: Many consider the world to now be multipolar rather than one where the US alone dominates international affairs.
  • Climate reparations: In the ongoing debate adds Northern countries paying for funding green energy, having historically contributed to higher carbon emissions.

Criticism of the classification

  • Only few players: South simply aims to replace the North and the positions it occupies, again continuing a cycle in which a few countries accumulate crucial resources.
  • More of a India vs. China competition: Much controversy currently surrounds the question of whether elites of the global South and ‘rising powers’ genuinely have the intention to challenge the dominant structures of global capitalist development”.
  • Anti-china motive: China’s tentative “going out” strategy at the turn of the century eventually morphed into the expansive Belt and Road Initiative.

Where does India stand?

  • No further diplomatic groupism: EAM S Jaishankar India’s objective is not to rebuild a global trade union against the North.
  • Bridging the divide: India is eager to become a bridge between the North and the South by focusing on practical outcomes rather than returning to old ideological battles.

Challenges

  • Political consistency: In the past, India’s ideological enthusiasm for the Global South was not matched by material power and political will.
  • Bridging the neighbours: India must also come to terms with the fact that the Global South is not a coherent group and does not have a single shared agenda.
  • Despaired south: There is much differentiation within the South today in terms of wealth and power, needs and capabilities.
  • Defiance from NAM: India’s Third World strategy (and Non-Aligned Movement) in the Cold War era was undermined by multiple internal and regional conflicts within the Global South.

Way ahead

  • More engagement in neighborhood: Championing the Global South today would demand more active Indian engagement with the messy regional politics within the developing world.
  • Political coherence: If India can translate this ambition into effective policy, there will be no contradiction between the simultaneous pursuit of universal and particular goals.

 

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G20 : Economic Cooperation ahead

G20: Setting the World Agenda Through Task Forces

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20

Mains level: G20 and India’s presidency, and agendas

G20

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Context

  • India’s G20 presidency began on December 1. It will be driven by the underlying vision of “Vasudhaiva Kutumbakam”, best encapsulated by the motto “One Earth, One Family, One Future”. As the main “ideas bank” of the G20, the activities and deliberations of the Think20 (T20) engagement group of the G20 are spread over seven task forces.

Task force on “Macroeconomics, trade, and livelihoods”

  • Create Coherence in monetary and fiscal policy: It has the mandate to make recommendations on coordination within the G20 to create coherence in monetary and fiscal policy, trade, investment, and supply chain resilience.
  • Recover together, recover stronger: The aim is to give further impetus to the initiatives taken by the Indonesian presidency to “Recover Together, Recover Stronger” in the post-pandemic period.
  • Consensus on international trade: With supply chain resilience emerging as a common concern against the backdrop of ineffective WTO mechanisms, the G20 has assumed the mantle as the most significant platform to forge consensus among the top 20 economies on international trade policy.

G20

Task force on “Digital Futures”

  • Digital infrastructure: It will endeavour to build an inclusive digital public infrastructure to ensure affordability and safe access by all.
  • Interoperability of Digital services: It will discuss the universal interoperability of digital services. It will also address issues of digital financial inclusion and skills, both integral to economic growth.

Task force on “LiFE, Resilience, and Values for Wellbeing”

  • Lifestyle for Environment (LiFE): The LiFE initiative aims to put the individual at the centre of the discourse and to sensitise every human being, regardless of nationality and geography. If individuals become more conscious of their lifestyle choices and act more responsibly, it can make a huge difference.
  • Contribution of all: The focus on LiFE is a timely initiative given the fact that the deleterious effects of climate change on the economy and livelihood are felt the most by the vulnerable countries around the world.

G20

Task force on “Green transitions”

  • Refuelling growth: Growth will be the aim of the task force on green transitions as it recommends pathways for a smooth transition to clean energy without compromising on efforts for global economic revival in a post-pandemic world.

Task force on the “Global financial order”

  • Restructuring the financial institution: It will examine the potential for realigning the global financial architecture. The challenge today is to restructure institutions in accordance with contemporary economic needs, including for infrastructure.
  • Finance and resource mobilization: Greater access to development finance and resource mobilisation through innovative methods is of key importance.

Task force on “Accelerating SDGs”

  • Sustainable collaboration: It will explore new pathways to deliver on the 2030 agenda through strengthened and sustainable collaboration.
  • Focus on circular economy to reduce waste: Given the earth’s finite resources, a shift towards a circular economy and deliberate and mindful consumption is likely to reduce waste and help build a virtuous cycle for development.

Task Force on “Reformed Multilateralism”

  • Road map for Multilateralism 2.0: It will seek to create a roadmap for “Multilateralism 2.0”. A targeted reform agenda for key multilateral institutions, whether the United Nations or its affiliated frameworks such as the WHO, WTO and the ILO, must be undertaken.
  • Representative world order: With sincere efforts, the global community can look forward to the birth of a more representative and egalitarian multipolar world order from the chrysalis of the G20.

G20

Conclusion

  • The year ahead is an opportunity for India to share its values to world. Vasudhaiva Kutumbakam, the guiding canon for India’s Neighbourhood First Policy and Vaccine Maitri, places higher human values above narrow nationalism. It is an approach that is expected to permeate all aspects of India’s G20 Presidency.

Mains Question

Q. What are the different task forces created under India’s G20 presidency? Briefly explain the role of different task forces.

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G20 : Economic Cooperation ahead

Bali G20 summit

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20

Mains level: Significance of G20 summit

g20

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-
  1. Food and Energy security
  2. Health Partnership for Global Infrastructure and Investment, and
  3. Digital Transformation

About G-20

  • 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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G20 : Economic Cooperation ahead

G20 Presidency: India can be voice for developing world

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20 and related facts

Mains level: G20 India's presidency, opportunity and challenges

G20

Context

  • Government of India launched the logo, website and theme for India’s presidency of the G20, setting the tone for the country’s G20 presidency, beginning December 1. Modi’s clarion call was “One Earth, One Family, One Future”, aptly underscored by the phrase “Vasudhaiva Kutumbakam”.

What is G-20?

  • Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.
  • It brings together 19 of the world’s major economies and the European Union.
  • Its members account for more than 80% of global GDP, 75% of trade and 60% of population
  • To tackle the problems or address issues that plague the world, the heads of governments of the G20 nations periodically participate in summits.
  • India has been a member of the G20 since its inception in 1999.

Do you know the aims and objective of G20?

  • 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.
  • Its members account for more than 80% of global GDP, 75% of trade and 60% of population.

G20

Current Global scenario and India’s G20 Presidency

  • War between Russia and west: It must nonetheless countenance a complex geopolitical moment, with tensions between G7 nations and Russia over the war in Ukraine, and growing friction between the US and China.
  • India’s efforts to be a meditator: PM Modi’s recent advice to President Putin that “now is not the time for war” is anchored in the ethos of peace and non-violence, the legacy of Buddha and Gandhi.
  • Energy crisis: The developmental agenda must receive first billing. Differences over energy diversification and the emerging challenges in trade and technology will need reconciliation.
  • Economic crisis: Stagflation in the US, China and Europe threatens to affect the global economic outlook. Policy coherence in macroeconomics and trade is an important imperative.
  • Supply chain disruptions: At the “Global Supply Chain Resilience” meeting in October 2021, Modi advocated cooperation on three critical aspects trusted source, transparency and time frame to improve global supply chains. At the SCO Summit this year, he cited the disruption of supply chains due to the Ukraine crisis and spoke of the unprecedented energy and food crises.

g20

What India can show to the world?

  • Growing economy and rising stature: India’s G20 presidency coincides with its growing confidence, matched by its rising stature and high economic growth rate.
  • India’s digital infrastructure: India’s commitment to digital transformation will be a key element in forging an accessible and inclusive digital public architecture. The country’s exemplary success with the Unified Payments Interface (UPI), Direct Benefits Transfer and Aadhaar authentication in welfare schemes has growing relevance to the developing world.
  • Efforts for TRIPS waiver on vaccine: The use of the CoWIN platform enhanced vaccine accessibility and equity. India has made a strong pitch for a TRIPS waiver to ensure equitable access to vaccine production.
  • Vaccine assistance to the world: India’s commitment to advancing South-South cooperation is well acknowledged. At the height of the pandemic, India provided 250 million vaccine doses to 101 countries, apart from other medical assistance.
  • SAGAR and Blue Economy: India’s global initiatives in recent years such as SAGAR (Security and Growth for All in The Region), “blue economy”, “clean oceans”, and disaster-resilient infrastructure have the potential to gain traction in the G20.
  • India as true climate leader: PM Modi’s “Panchamrit” announcements at COP26 — net zero by 2070, non-fossil energy capacity to 500 GW by 2030, 50 per cent of energy requirement through renewables by 2030, reduction of carbon emission by 1 billion tonnes by 2030, and reduction of carbon intensity in the Indian economy to less than 45 per cent by 2030 — established India as a climate leader.

What should be India’s Priority as President of G20?

  • Open application programming interface: As economies everywhere move rapidly towards digitalization, it is important to develop a consensus on an open source, open application programming interface (API) and an interoperable framework for public digital platforms on which the private sector can freely innovate. This would help maximize the impact of the digital transformation for the global public good, including new data, measurement tools, indicators of economic growth and the achievement of Sustainable Development Goals (SDGs).
  • Promotion of LiFE philosophy: At the COP26 in Glasgow, Modi proposed Mission LiFE, which places individual behavior at the centre of the global climate action narrative. The Mission intends to establish and nurture a global network of individuals known as Pro-Planet People (P3), committed to adopting and promoting environmentally friendly lifestyles. This is based on the idea that responsible individual behavior can undo the damage wrought upon nature.
  • Focus on climate financing: At COP27 as well as during its G20 presidency, India will have to focus attention on climate finance, especially a new quantified goal beyond the existing annual $100 billion pledge by Advanced Economies (AEs) to assist developing nations in climate change adaptation and mitigation from 2020 to 2025. The delayed pledge is expected to be fulfilled in 2023 during India’s presidency and from there on, the G20 needs to raise the bar.
  • Clean energy partnership: The G20 presidency will provide India with an opportunity to give impetus to several of its initiatives for clean energy partnerships especially in solar, wind and hydrogen with the EU, Japan and the US. It will provide a platform to give a fillip to the idea of, “One Sun, One World, One Grid”, first mooted by Modi at the International Solar Alliance (ISA) in 2018.
  • Achieving the Net Zero target: India has the scale and capacity to set a shining example of rapid and decarbonized economic growth to help realize the G20’s global net zero ambitions. A viable international framework for development and international trade in GH2, together with green ammonia and green shipping, is the key. Reliable supplies of critical minerals and technological collaborations for energy storage, including a global battery coalition, could provide answers.
  • Nuclear energy as an alternative: Given the nascent support today for civilian nuclear energy in Europe due to energy market volatility, the G20 could work toward an expanded and robust civilian nuclear energy cooperation framework, including for small modular reactors.
  • Reforming the multilateralism: Multilateral institutions are perceived today as unrepresentative, ineffective, or worse still, both. The call for a new multilateralism and reassessment of the Global Financial Order to ensure adequate credit enhancement and blended finance for sustainable green transitions reflects a popular global sentiment.

g20

Conclusion

  • India’s presidency should represent the widest and most vulnerable constituencies, especially in South Asia. This can truly advance intra-South Asian economic integration, which is so essential for India’s rise.

Mains question

Q. India assumed G20 presidency with a mantra of Vasudhaiva Kutumbakam. In light of this What should be the India’s Priority as President?

 

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G20 : Economic Cooperation ahead

PM unveils G20 logo: Significance of the lotus on it

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7, G12, G20

Mains level: India's presidentship of G20

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-
  1. 85 per cent of the global GDP,
  2. 75 per cent of the global trade, and
  3. 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).

 

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G20 : Economic Cooperation ahead

G20 summit will open pandora of opportunities

Note4Students

From UPSC perspective, the following things are important :

Prelims level: members of G20

Mains level: opportunities for India

G20 summitContext

  • India is going to be at the centre stage of geopolitical spectrum as India will be hosting G20 summit presidency from December 2022. As Harsh V. Shringla, India’s chief G20 coordinator and former Foreign Secretary, (Amitabh kant is G20 Sherpa of India) recently said, “Our G20 Presidency would place India on the global stage, and provide an opportunity for India to place its priorities and narratives on the global agenda.”

What is G20 (Group of Twenty)?

  • Composed of most of the world’s largest economies: 19 countries plus European Union, including both industrialized and developing nations. Together, its members represent more than 80% of the world’s GDP, 75% of international trade and 60% of the world’s population.
  • Role: To address major issues related to the global economy such as international financial stability, climate change mitigation, and sustainable development.
  • It is an Intergovernmental forum.
  • Strategic role: The G20 holds a strategic role in securing global economic growth and prosperity.

G20 summitIndia and the presidency of G20 summit

  • In November this year, the 17th G20 Heads of State and Government Summit will take place in Bali.
  • After Indonesia, India will assume the presidency of the G20 from December 1, 2022 to November 30, 2023.
  • By hosting the summit of the G20, India will have the opportunity to assume centre stage in proposing and setting the global agenda and discourse.
  • India can assert its political, economic and intellectual leadership while hosting the G20 presidency.
  • Further it Provides India an opportunity to also champion the causes of developing and least developed countries.
  • India could invite and engage countries from Africa and South America to ensure better and more balanced representation at the G20.

G20 summitChallenges before India:

         Global

  • World affected by the pandemic: Uneven vaccine availability has been flagged by many countries. Vaccine issue upset some countries.
  • Ukraine conflict: According to external affairs ministers Dr.S.Jaishankar due to Ukraine  conflict world is divided and this poses the challenge for India to bring rival camp on same stage
  • Climate change: Divergent view of developed and developing countries on climate change can be the bone of contention between west and the rest.
  • The rise of an assertive China: To maintain the delicate balance between NATO, G7 on the on hand while Russia and china on the other (as India is part of both QUAD and SCO).

     Domestic

  • Economic challenges: Such as stagflation, unemployment, exchange rate, declining prospects for exports and rising trade deficit.
  • Terrorism: Cross border terrorism emanating from Pakistan.

Indonesia has focused on three key pillars in its presidency of G20 presidency:

  • Global health architecture: president of Indonesia Joko Widodo talked about a global contingency fund for medical supplies, building capacity in developing countries to manufacture vaccines and the creation of global health protocols and standards.
  • Sustainable energy transition: as part of its roadmap to reach net zero by 2060, Indonesia had slashed the coverage area of forest fires sevenfold. The country has restored peatlands and rehabilitated 50,000 hectares of mangrove forests.
  • Digital transformation

What India can address?

  • Issues of global concern: Terrorism, climate change, stagflation etc.
  • Domestic and regional: economic recovery, trade and investment, unemployment, patent waivers on diagnostics, therapeutics, vaccines etc.
  • Greater co-operation and co-ordination: free trade agreements, supply chain resilience mechanism, stressing on green and digital transformations in the economy and its impact on societal well-being.
  • Other important Areas :such as technology transfer, assistance towards green economy, greater access to trade for developing countries, addressing debt distress of countries by offering sustainable aid and loan programmes, tackling food and energy prices/security for vulnerable economies etc.

Why G20 summit presidency is an opportunity for India?

  • India exchange the G20 presidency with Indonesia and chose 2023 instead of 2022 to host the G20 countries.
  • India wanted to showcase its prowess in its 75th year of independence as cornerstone of new emerging world order. As India is part of Quad and SCO BRICS -the warring factions at world stage, it’s an opportunity in crisis to become the bridge of the divided world.
  • India is hosting the summit in Kashmir. World media will be in the Kashmir. In the direct message to world India will again assert that Kashmir is an integral part of India.

Way ahead

  • As India will be hosting G20 and SCO summits, India will be central in outlining key priority areas. India can assert its political, economic and intellectual leadership which will have to address issues that help in cement the Fault-line in the world order.
  • India’s leadership could define the coming years and decades of global discourse and avenues of cooperation.

Other related Information

SCO (Shanghai Co-operation Organization):

  • The Shanghai Cooperation Organization (SCO) is a Eurasian political, economic and security organization. It is the world’s largest regional organization, 40% of the world population, and more than 30% of global GDP.
  • Members: The Shanghai Five group was created on 26 April 1996; China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan, Uzbekistan, India and Pakistan.

QUAD:

  • Known as the ‘Quadrilateral Security Dialogue’ (QSD), the Quad is an informal strategic forum comprising four nations, namely – United States of America (USA), India, Australia and Japan.
  • One of the primary objectives of the Quad is to work for a free, open, prosperous and inclusive Indo-Pacific region.

G7:

  • The Group of Seven (G7) is an inter-governmental political forum consisting of Canada, France Germany, Italy, Japan, the United Kingdom and the United States. In addition, the European Union is a ‘non-enumerated member.

Mains Question

Q. India can take advantage of G20 for its economic growth and security architecture. Discuss.

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G20 : Economic Cooperation ahead

G20 presidency opportunities for India’s growth and prosperity

Note4Students

From UPSC perspective, the following things are important :

Prelims level: particulars of G20

Mains level: global governance

G20 Context

  • India’s presidency of the G20 grouping next year arguably the sole remaining effective forum for global governance presents an enormous opportunity to accelerate sustainable growth within India, in the emerging world, and beyond.

About G20

  • Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.

Features

  • 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 the 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.

Objectives

  • Stability: The Group was formed with an aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.
  • Fiscal responsibilities: The forum aims to pre-empt balance of payments problems and turmoil on financial markets by improved coordination of monetary, fiscal, and financial policies.
  • Universal Support: The forum seeks to address issues that go beyond the responsibilities of any one organisation.

G20Is India ready for G20 leadership?

  • At some levels, India is ready.
  • Indian business and industry is becoming a noteworthy competitor globally.
  • The country’s domestic economy is starting to pick up, thanks to structural economic reforms.
  • The central government is economically stronger, and the states are starting to learn about economic independence, making them more aligned with their global counterparts.

Punchline

It is said that “those who hold the pen, write the rules”.

The time has come for India to both hold the pen and write the rules for a more equitable global economics and governance.

Issues and Challenges

  • India need to have a clear global financial agenda.
  • The country should also have the capacity to lead the G20 year intellectually, financially, managerially and administratively.
  • Geopolitically, India is more internationally engaged but less so geoeconomically.
  • Its narrow focus is on the World Bank, IMF, WTO and foreign investment issues.
  • But India has much to contribute on issues like reconfiguration of global financial regulations, design of a new framework for trade in services and the digital economy and establishing better cross-border standards for transparency in financial flows.
  • To make its G20 year a success, India has to address organisational challenges, where the country has an infrastructure, management and intellectual gap.

G20What could India bring to the table?

  • Mediation: Firstly, it remains pertinent for the world that escalating tensions between Russia and Ukraine come to a halt. Maintaining its balanced stance, India needs to neutralise this situation by introducing peace talks between the two nations.
  • Open trade: It’s about time for India to raise its voice in support of a transparent New Economic Order and building a prosperous and just world. Unreasonable bans on certain commodities from various countries limits commerce between states when trade liberty exists.
  • Collaboration around science and technology: The global agenda has been tilted towards investment, whereas science and technology are the driving force for economic diversification, sustainably urbanising the world, and ushering the hydrogen economy and new crop varieties as the answer to both human well-being and global climate change.
  • Redefining digital access as universal service: Harnessing the potential of the digital-information-technology revolution requires redefining digital access as a “universal service” that goes beyond physical connectivity to sharing specific opportunities available.

Conclusion

  • India’s presidency must leave the grouping with the agility and energy to respond to new realities, and it must create a future-ready multilateralism through a novel and robust institutional architecture.

Mains question

Q. It is said that “those who hold the pen, write the rules”. The time has come for India to both hold the pen and write the rules for a more equitable global economics and governance. Discuss in the context of India’s presidency of G20 summit with challenges and opportunities ahead.

 

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G20 : Economic Cooperation ahead

A new global vision for G20

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-20

Mains level: Paper 2- New framework for G20

Context

While India has taken a clear view of the role of the G20, there is concern that the agenda, themes and focus areas which India will set for 2023 lack vision.

What is G-20?

  • 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.

Significance of G20 in shaping global order

  • The G20 plays an important role in shaping and strengthening global architecture and governance on all major international economic issues.
  • It recognises that global prosperity is interdependent and economic opportunities and challenges are interlinked.
  • The challenge is to craft new approaches to overcome the acute global discord.

Why we need new model of cooperation

  • Multilateral commitments are faltering: Governance in a world that is steadily becoming more equal needs institutional innovation.
  • This is because the role of the United Nations and the World Trade Organization in securing cooperation between donor and recipient country groups is losing centrality.
  •  There are now three socio-economic systems — the G7, China-Russia, and India and the others — and they will jointly set the global agenda.
  • Strategic competition: Ukraine conflict, rival finance, the expanding influence of the trade and value chains dominated by the U.S. and China, and the reluctance of developing countries to take sides in the strategic competition as they have a real choice requires fresh thinking.
  • Preventing the clash of ideas through reorientation: The primary role of the G20, which accounts for 95% of the world’s patents, 85% of global GDP, 75% of international trade and 65% of the world population, needs to be reoriented to prevent a clash of ideas to the detriment of the global good.
  • The solution lies in a new conceptual model seeking agreement on an agenda limited to principles rather than long negotiated anodyne text.

What should be on agenda when India hosts G20 in 2023

1] Underlining the need for new framework

  • Redefining common concerns: First, the presumed equality that we are all in the same boat, recognised in the case of climate change, needs to be expanded to other areas with a global impact redefining ‘common concerns’.
  • Second, emerging economies are no longer to be considered the source of problems needing external solutions but source of solutions to shared problems.
  • Third, the BRICS provides an appropriate model for governance institutions suitable for the 21st century where a narrow group of states dominated by one power will not shape the agenda.
  • Ensuring adequate food, housing, education, health, water and sanitation and work for all should guide international cooperation.
  • Principles of common but differentiated responsibilities for improving the quality of life of all households can guide deliberations in other fora on problems that seem intractable in multilateralism based on trade and aid.

2] Collaboration around science and technology

  •  The global agenda has been tilted towards investment, whereas science and technology are the driving force for economic diversification, sustainably urbanising the world, and ushering the hydrogen economy and new crop varieties as the answer to both human well-being and global climate change.
  •  A forum to exchange experiences on societal benefits and growth as complementary goals would lead to fresh thinking on employment and environment.

3] Redefining digital access as universal service

  • Harnessing the potential of the digital-information-technology revolution requires redefining digital access as a “universal service” that goes beyond physical connectivity to sharing specific opportunities available.
  • For global society to reap the fruits of the new set of network technologies, open access software should be offered for more cost-effective service delivery options, good governance and sustainable development.

4] Collaboration in space technology

  • Space is the next frontier for finding solutions to problems of natural resource management ranging from climate change-related natural disasters, supporting agricultural innovation to urban and infrastructure planning.
  • Analysing Earth observation data will require regional and international collaboration through existing centres which have massive computing capacities, machine learning and artificial intelligence.

5] Collaboration in health sector

  • Public health has to learn from the COVID-19 fiasco with infectious diseases representing a market failure.
  • A major global challenge is the rapidly growing antimicrobial resistance which needs new antibiotics and collaboration between existing biotechnology facilities.

6]  Avoiding strategic competition

  • Overriding priority to development suggests avoiding strategic competition.
  • Countries in the region will support building on the 1971 UNGA Declaration designating for all time the Indian Ocean as a zone of peace and non-extension into the region of rivalries and conflicts that are foreign to it.

7] Reviving Global Financial Transaction Tax

  •  A Global Financial Transaction Tax, considered by the G20 in 2011, needs to be revived to be paid to a Green Technology Fund for Least Developed Countries.

Conclusion

Given the significance of G20 for the global order it should lead the way in formulating the new framework based on collaboration in areas such as science and technology, innovation and away from aid and trade.

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G20 : Economic Cooperation ahead

Ex-NITI Aayog CEO Amitabh Kant is new G-20 Sherpa

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Sherpa, G20

Mains level: G20 summit

Former NITI Aayog CEO Amitabh Kant has been picked as India’s new Sherpa for the G-20.

Who is a Sherpa (in IR context)?

  • A Sherpa is the personal representative of a head of state or government who prepares an international summit, particularly the annual G7 and G20 summits.
  • Between the G7 summits, there are multiple Sherpa conferences where possible agreements are laid out.
  • This reduces the amount of time and resources required at the negotiations of the heads of state at the final summit.
  • The name Sherpa—without further context—refers to Sherpa for the G7 summit, but the designation can be extended to different regular conferences where the participation of the head of state is required.
  • The Sherpa is generally quite influential, although they do not have the authority to make a final decision about any given agreement.

Etymology

  • The name is derived from the Sherpa people, a Nepalese ethnic group, who serve as guides and porters in the Himalayas, a reference to the fact that the sherpa clears the way for a head of state at a major summit.
  • They are Tibetan Buddhists of the Nyingmapa sect, and have drawn much of their religious tradition from the Rongphu monastery, located at 16,000 feet on the north side of Mount Everest.

About G20

  • 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.

Its significance

  • G20 is a major international grouping that brings together 19 of the world’s major economies and the European Union.
  • Its members account for more than 80% of global GDP, 75% of trade and 60% of population.

India and G20

  • India has been a member of the G20 since its inception in 1999.

 

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G20 : Economic Cooperation ahead

G-20 summit expected to be in Delhi

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7, G12, G20

Mains level: Not Much

India is expected to host the G-20 summit in Delhi, while a number of States, including Jammu and Kashmir and north-eastern States, have been asked to suggest venues for about 100 “preparatory” meetings.

Why in news?

  • The clarifications came in response to questions being raised over reports in the media about the possibility of holding the summit itself in Jammu and Kashmir.
  • Pakistan had issued a strong protest last week, sent formal demarches to Foreign Ministries in G-20 member-states, asking them not to attend such meetings.
  • Pakistan (alone) believes J&K is internationally recognised disputed territory.

Why such move?

  • The participation of the delegates from G-20 countries will be a major boost to the efforts of the Centre to project the situation in J&K as normal.
  • This is especially after J&K’s special constitutional position was ended in 2019.

What is G-20?

  • 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.

Its significance

  • G20 is a major international grouping that brings together 19 of the world’s major economies and the European Union.
  • Its members account for more than 80% of global GDP, 75% of trade and 60% of population.

India and G20

  • India has been a member of the G20 since its inception in 1999.

 

 

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G20 : Economic Cooperation ahead

G7

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- G-7 and India

Context

The meeting of G7 leaders that concluded in Bavaria was attended by India as an observer.

About G7

  • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
  • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
  • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
  • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
  • Canada joined the group in 1976, and the European Union began attending in 1977.
  • The G7 is trying hard not to be yesterday’s club.
  • It is still a powerful grouping, with seven of its members in the top 10 economies of the world, three of them permanent members of the UNSC.

Important outcomes of the G7 meeting

  • Statement on support for Ukraine: A standalone G7 Statement on Support for Ukraine was issued.
  • There was an unconditional commitment that the grouping will provide financial, humanitarian, military and diplomatic support and stand with Ukraine for as long as it takes.
  • Russia was also warned that any use of chemical, biological and nuclear weapons would be met with severe consequences.
  • Further intensification of sanctions against Russia was contemplated.
  • Tough language on China: Significantly, the G7 final communique has tough language on China as well.
  • It says there is no legal basis for China’s expansive maritime claims in the South China Sea, it calls on China to press Russia to withdraw troops from Ukraine and expresses grave concern about the country’s human rights situation.
  • It calls on China to respect universal human rights and fundamental freedoms in both Tibet and Xinjiang, highlighting the issue of forced labour in the latter.

Significance of India’s observer status

  • The fact is that even the G7 knows its clout has declined compared to, say, 20 years ago.
  • That explains the move to invite key G20 countries as observers to its summits.
  • As for India, its importance lies in the undeniable truth that no global problem can be seriously tackled without New Delhi’s involvement.
  • For India, G7 summits have always been an invaluable opportunity to exchange views not just in a plurilateral format but also in the bilateral meetings on the margins of the main meetings.
  • 2 statements: India has lent its name to two statements issued by the G7. One is titled “Resilient Democracies Statement” and the other is “Joining Forces to Accelerate Clean and Just Transition towards Climate Neutrality”.
  • The first statement talks of democracies as reliable partners seeking to promote a rules-based international order and supporting democracy worldwide including through electoral assistance.
  • The other statement to which India is a signatory is the one on clean and just transition towards carbon neutrality.

Conclusion

India’s participation in this meeting as an observer serves to advance its foreign and security policy objectives and will keep it in good stead when it assumes the G20 presidency in December.

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G20 : Economic Cooperation ahead

G-20

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7, G12, G20

Mains level: Read the attached story

The Jammu and Kashmir administration has constituted a committee to coordinate with the delegates of G-20 countries scheduled to participate in a meeting to be held in the Union Territory (UT) next year.

Why such move?

  • The participation of the delegates from G-20 countries will be a major boost to the efforts of the Centre to project the situation in J&K as normal.
  • This is especially after J&K’s special constitutional position was ended in 2019.

What is G-20?

  • 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.

Its significance

  • G20 is a major international grouping that brings together 19 of the world’s major economies and the European Union.
  • Its members account for more than 80% of global GDP, 75% of trade and 60% of population.

India and G20

  • India has been a member of the G20 since its inception in 1999.

 

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G20 : Economic Cooperation ahead

PM to attend G-7 summit in Germany

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7, G12, G20

Mains level: G7

PM Modi will fly to the Germany as a special invitee to the meeting of G-7 countries.

Group of 7

  • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
  • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
  • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
  • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
  • Canada joined the group in 1976, and the European Union began attending in 1977.

Evolution of the G-7

  • When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
  • And it was a cosy club for tackling issues such as the response to oil shocks.
  • Now it accounts for about 40% of global GDP.
  • Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader G20.
  • The G-7 became the G-8 in 1997 when Russia was invited to join.

Why was Russia expelled?

  • The G-7 was known as the ‘G-8’ for several years after the original seven were joined by Russia in 1997.
  • The Group returned to being called G-7 after Russia was expelled as a member in 2014 following the latter’s annexation of the Crimea region of Ukraine.
  • Since his election in 2016, President Trump has suggested on several occasions that Russia be added again, given what he described as Moscow’s global strategic importance.

Why in news now?

  • New Delhi is preparing for more pressure from the G-7 countries.
  • These countries (Canada, France, Germany, Italy, Japan, the UK, the US and the EU) have unitedly imposed sanctions on Russia since it invaded Ukraine.
  • They want India to cooperate in restricting its purchase of Russian oil, not circumvent the sanctions by using a rupee-rouble mechanism.
  • It also wants India to lift the ban on the export of wheat.

Relevance of G7 for India

  • India will get more voice, more influence and more power by entering the G7.
  • After UN Security Council (UNSC), this is the most influential grouping.
  • If the group is expanded it will collectively address certain humongous issues in the global order.
  • Diplomatically, a seat at the high table could help New Delhi further its security and foreign policy interests, especially at the nuclear club and UNSC reforms.
  • It will further protect its interests in the Indian Ocean.

Challenges for India’s entry

  • The decision to expand the grouping cannot be taken by the US alone.
  • There needs to be a consensus.
  • However, a special invitation to India is no mean achievement.

 

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G20 : Economic Cooperation ahead

India joins G20’s Troika

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20, G7 and its members

Mains level: Not Much

India has joined the G20 ‘Troika’with Indonesia and Italy.

G20 Troika

  • Troika refers to the top grouping within the G20 that consists of the current, previous and incoming presidencies — Indonesia, Italy and India.
  • With this move, India has started the procedure for taking over the G20 presidency.

Significance of the move

  • India will assume the G20 presidency on December 1, 2022 from Indonesia, and will convene the G20 Leaders’ Summit for the first time in India in 2023.
  • Indonesia took over the G20 presidency this year.

Do you know?

A Sherpa is the personal representative of a head of state or head of government who prepares an international summit, such as the annual G7 and G20 summits.

About G20 Countries

  • 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.
  • The members of the G20 consist of 19 individual countries plus the European Union (EU).
  1. 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.
  2. The European Union is represented by the European Commission and by the European Central Bank.
  • India has been a member of the G20 since its inception in 1999.

 

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G7 Trade Ministers’ Digital Trade Principles

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7

Mains level: Digital Trade Principles

The Group of Seven wealthy nations agreed on a joint set of principles to govern cross-border data use and digital trade.

What are the Digital Trade Principles?

  • Open digital markets: Digital and telecommunications markets should be competitive, transparent, fair, and accessible to international trade and investment.
  • Cross-border data flows: To harness the opportunities of the digital economy and support the trade of goods and services, data should be able to flow freely across borders with trust.
  • Safeguards for workers, consumers, and businesses: Labour protections must be in place for workers who are directly engaged in or support digital trade, providing decent conditions of work.
  • Digital trading systems: To cut red tape and enable more businesses to trade, governments and industries should drive forward the digitization of trade-related documents.
  • Fair and inclusive global governance: Common rules for digital trade should be agreed and upheld at the World Trade Organization.

About Group of Seven

  • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • It is an intergovernmental organization that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
  • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
  • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
  • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
  • Canada joined the group in 1976, and the European Union began attending in 1977.

Evolution of the G-7

  • When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
  • And it was a cosy club for tackling issues such as the response to oil shocks.
  • Now it accounts for about 40% of global gdp.
  • Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader g20.
  • The G-7 became the G-8 in 1997 when Russia was invited to join.
  • In 2014, Russia was debarred after it took over Crimea.

 

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G20 : Economic Cooperation ahead

India appoints Sherpa for G20 Summit

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20, G7 and its members

Mains level: G20

The government has appointed a union minister as Sherpa for the G20 summit.

Who is a Sherpa (in IR context)?

  • A sherpa is the personal representative of a head of state or government who prepares an international summit, particularly the annual G7 and G20 summits.
  • Between the G7 summits, there are multiple sherpa conferences where possible agreements are laid out.
  • This reduces the amount of time and resources required at the negotiations of the heads of state at the final summit.
  • The name sherpa—without further context—refers to sherpas for the G7 summit, but the designation can be extended to different regular conferences where the participation of the head of state is required.
  • The sherpa is generally quite influential, although they do not have the authority to make a final decision about any given agreement.
  • The name is derived from the Sherpa people, a Nepalese ethnic group, who serve as guides and porters in the Himalayas, a reference to the fact that the sherpa clears the way for a head of state at a major summit.

About G20

  • 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.

Its significance

  • G20 is a major international grouping that brings together 19 of the world’s major economies and the European Union.
  • Its members account for more than 80% of global GDP, 75% of trade and 60% of population.

India and G20

  • India has been a member of the G20 since its inception in 1999.

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G20 : Economic Cooperation ahead

OECD-G20 Inclusive Framework Tax Deal

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Global Minimum Tax, BEPS

Mains level: Global Minimum Tax Debate

India has joining the OECD-G20 framework for a global minimum tax.

Must read

What is Global Minimum Corporate Tax?

What is this tax deal?

  • The proposed solution consists of two components:
  1. Pillar One is about the reallocation of an additional share of profit to the market jurisdictions and
  2. Pillar Two consists of minimum tax and subject to tax rules
  • Some significant issues including share of profit allocation and scope of subject to tax rules, remain open and need to be addressed.
  • Further, the technical details of the proposal will be worked out in the coming months and a consensus agreement is expected by October.

Why did India join?

  • The principles underlying the solution vindicates India’s stand for a greater share of profits for the markets, consideration of demand-side factors in profit allocation.
  • There is a need to seriously address the issue of cross border profit shifting and need for the subject to tax rules to stop treaty shopping.
  • India is in favour of a consensus solution that is simple to implement and simple to comply with.
  • At the same time, the solution should result in the allocation of meaningful and sustainable revenue to market jurisdictions, particularly for developing and emerging economies.

What is Base Erosion and Profit Shifting (BEPS)?

  • BEPS refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions.
  • It thus “erodes” the “tax base” of the higher-tax jurisdictions.
  • Corporate tax havens offer BEPS tools to “shift” profits to the haven, and additional BEPS tools to avoid paying taxes within the haven.
  • It is alleged that BEPS is associated mostly with American technology and life science multinationals.

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G20 : Economic Cooperation ahead

A template for Indian engagement with the West

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-7

Mains level: Paper 2- Opportunity for India to institutionalise its relations with the West

The article highlights the significance of the recent G-7 summit for India.

India’s engagement with the West

  • Two important messages emerge from India’s participation in G-7 with the members of the G-7 and three other invited guests — Australia, South Africa and South Korea.
  • First is that India is a “natural ally” of the G-7 and its partners.
  • The other is the emphasis on shared democratic values that bind India with the West.
  • The two ideas are certainly not new to India’s foreign policy, but they acquire special importance at the current juncture.
  • In the last few years, India embarked on an expansive engagement with Europe.
  • This G-7 summit can be seen as the beginning of an institutionalisation of India’s cooperation with the West.

What makes this G-7 Summit different from the past Summits?

  • China factor: After the 2008 financial crisis, the more representative G-20, which includes China, Russia, India and many others, seemed to supersede the G-7.
  • But amidst the growing sense that China has gamed the global economic order to America’s disadvantage, there has been renewed interest in like-minded coalitions like the G-7.
  • Widening the base of G-7: There is also the recognition of the case for widening the base of institutions like the G-7 beyond the geographic West to include large democracies like India.
  • Coalition of democracies: The case for a “coalition of democracies” was certainly gaining ground over the last two decades within American academia and the political class.
  • But economic globalisation and the absence of great power rivalry meant there was no compelling policy urgency to construct an “alliance of democracies”.
  • That condition has altered radically in the last few years amidst the growing US tensions with China and Russia. 

Dealing with the challenges presented by China

  • U.S. President Biden declared his main objective as rallying democracies to meet the great challenges of our time, especially those presented by China.
  • G-7 summit has responded to Biden’s call in the following forms:
  • 1) By offering the outline of a potential alternative to China’s ambitious Belt and Road Initiative.
  • 2)By calling for a reorientation of global supply chains away from China.
  • 3) By demanding a fresh inquiry into the origins of the Covid-19 pandemic in China.
  • 4) By reprimanding Beijing policies in Xinjiang and Hong Kong.
  • 5) By raising concerns about the conflict across the Taiwan Strait.
  • However, there is a strong view that the door must be kept open for engagement with China on issues like climate change while calling out its unacceptable policies.

India’s relations with China: New context for engagement with West

  • The rupture in the US engagement with China coincides with the rapid deterioration in India’s relations with China.
  • This also sets up a new context for India’s partnership with the West.
  • If the Indo-Pacific provides a regional basis for India’s engagement with the US and Europe, mitigating climate change and the management of the Covid-19 pandemic provides a global template for India’s engagement with the West.

Way forward

  • The case for renewal and reform of democratic institutions is urgent in both the US and India.
  • So is the need for sustained consultations between India and its Western partners on a range of new challenges presented by digital technologies, including radicalisation, disinformation, electoral interference, cyber-attacks and the role of large social media companies. 
  • The statement on open societies provides a sound basis for such an engagement.

Conclusion

India must begin institutionalisation of its relationship with the West and increase its engagement on various common issues including the China challenge.

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Can the G-7 give new direction to globalisation?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-7 countries

Mains level: Paper 2- Relevance of G-7

The article highlights the challenges associated with the globalisation and important role G-7 can play in dealing with these challenges.

The context that makes this G-7 Summit significant

  • The most significant expectation of the summit is that it will help determine the shape of globalisation.
  • There has been much discussion of the possibility of the G-7 pushing for global coordination on minimum corporate taxation.
  • The summit also seeks to redefine the broader relationship between states and markets in three ways.

Redefining the relationship between states and market in 3 ways

1) States reasserting the control over markets

  • States are reasserting control over the terms on which markets operate.
  • The idea of Neoliberalism did convey the idea that states should follow where the market leads, or step in only where there is a market failure.
  • However, this account of the relationship between states and markets had four harmful consequences.
  • 1) It provided a misleading picture of what makes economies vibrant.
  • 2) It led to a sense of loss of collective control over our economic future.
  • 3) It led to great inequality.
  • 4) In some fields like technology, it created new forms of corporate power.
  • To reverse some of these consequences, some coordination at the global level on taxation, or treatment of technology monopolies etc is required.

2) Global interdependence cannot be managed without global public goods

  • At one level the global roles of the G-7 or even the G-20 were something like the political steering committee for global capitalism.
  • Their most useful political roles were during the financial crisis, when global financial coordination was required.
  • But there was relatively little attention to the systemic vulnerabilities that globalisation might create.
  • These could be vulnerabilities because of the way supply chains were distributed, or those that arose from the creation of winners and losers within globalisation.
  • Most importantly, there was short shrift given to global public goods like health.
  • The Covid crisis has reminded us of all of these vulnerabilities.
  • The commitment of G-7 to provide one billion vaccine doses is a welcome step.
  • But whether this crisis-driven commitment will translate into an enduring and just framework for providing global public goods on health and environment remains to be seen.

3) Geopolitical context

  •  There are two geopolitical “cold wars” that cast a shadow on the G-7.
  • The first involves China.
  • In the context of rising geopolitical tensions with China, greater coordination and unity of purpose amongst the G-7 will become more important.
  • The second is a threat of authoritarian disruption.
  • Greater global disarray strengthens the possibility of giving political support to these political tendencies.
  • It is important, therefore, to demonstrate that the G-7 countries are part of a functional democratic civilisation.

Challenges ahead

  • Despite the directional changes, many of the central distributive conflicts that beset globalisation are likely to continue.
  • The talk of global public goods works only in a context where the advanced economies are at the receiving end.
  • Take the G-7 proposal for the coordination of taxation.
  • In principle, this is not a bad idea, if it can close off tax havens and prevent a global race to the bottom.
  • However, it is sobering to read the Tax Justice Network’s “The State of Tax Justice Report” 2020.
  • According to this report, the United States, Netherlands and United Kingdom are three of the top five countries (along with Cayman Islands and Luxembourg) responsible for tax losses inflicted on other countries.
  • The US, Switzerland, Singapore and Hong Kong are amongst the highest on the Financial Secrecy Index.
  • So, the visible corporate tax rate, or taxing at point of sales, may just be the window dressing the global tax problem that allows countries to hold onto their privileges.
  • Similarly, on climate change. There is a lot of encouraging talk of ambitious targets, investment-led transformations.
  • Intelligently done, this might be for the good.
  • But it could also repeat the familiar pattern of regulation serving to preserve the dominance of advanced economies.
  • There is also, in the talk of a new global economic order, the curious absence of discussions on finance.
  • But if one is looking at potential sources of vulnerability, the ability to create winners and losers, and possible threats to global resilience, then regulation and coordination of global finance deserve more attention.

Consider the question “What are the vulnerabilities associated with globalisation. Suggest the solutions to deal with these vulnerabilities.”

Conclusion

If the G-7 wants to truly exercise more leadership, it will have to convince the world that all its wonderful new principles, resilience, inclusion, global public goods, are not simply ruses to serve only the interests of the developed world.

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G20 : Economic Cooperation ahead

G-7 agenda this year and what is in it for India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7

Mains level: Read the attached story

At the invitation of UK PM, PM Modi will participate in the Outreach Sessions of the G7 Summit this week.

Note the members of G7 and G20. UPSC may puzzle you asking which G20 nation isn’t a member of G7.

The Group of 7

  • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • It is an intergovernmental organization that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
  • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
  • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
  • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
  • Canada joined the group in 1976, and the European Union began attending in 1977.

Evolution of the G-7

  • When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
  • And it was a cosy club for tackling issues such as the response to oil shocks.
  • Now it accounts for about 40% of global gdp.
  • Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader g20.
  • The G-7 became the G-8 in 1997 when Russia was invited to join.
  • In 2014, Russia was debarred after it took over Crimea.

Agenda of G-7 this year

  • The UK currently holds the presidency of the G7 and has invited India, along with Australia, Republic of Korea and South Africa, as guest countries for the Summit.
  • The meetings will be held in hybrid mode.
  • The theme for the summit is ‘Build Back Better’ and the UK has outlined four priority areas for its presidency:
  1. leading the global recovery from coronavirus while strengthening resilience against future pandemics;
  2. promoting future prosperity by championing free and fair trade;
  3. tackling climate change and preserving the planet’s biodiversity; and
  4. championing shared values and open societies.

Is India attending it for the first time?

  • Since 2014, this is the second time PM Modi will be participating in a G7 meeting.
  • India had been invited by the G7 French Presidency in 2019 to the Biarritz Summit as a “Goodwill Partner” and the PM participated in the Sessions on ‘Climate, Biodiversity and Oceans’ and ‘Digital Transformation’.
  • During Prime Minister Manmohan Singh’s UPA rule, India attended the G8 five times.
  • Russia was indefinitely suspended in March 2014 after the annexation of Crimea, reducing the count of the G8.

What to watch out for at this G-7 summit?

  • This will be President Biden’s first visit to Europe, where he will signal his key message “America is back”.
  • He has flown down to the UK, where he will meet British Prime Minister Boris Johnson, Queen Elizabeth II and other allies at the G7 summit.
  • He’ll continue on to a NATO conclave in Brussels on June 14, before his conversation with Russian President Vladimir Putin in Geneva two days later.
  • This sequencing of events has been done to coordinate Washington’s moves of consultations with allies before meeting the Russian President.
  • This ties in well with the US President’s initial foray into multilateralism — he held the first summit of leaders of “the Quad” — Australia, India, Japan and the US.
  • This was aimed at increasing vaccine production and aligning their positions toward Beijing.

Why is this meeting important?

  • The US-Russia relations are going through a rough patch — some analysts even refer to it as possibly their nadir since the end of the Cold War.
  • Interestingly, the venue of the Biden-Putin meeting — Geneva — is the place where then US President Ronald Reagan held his first meeting with Soviet Union’s Mikhail Gorbachev in 1985.
  • The key element that is making Washington take the important step of engaging with Moscow to contain the damage in their bilateral ties is that the US wants to focus on its strategic rival, China.

What’s in it for India?

  • India has long called for reforming global institutions and groupings to reflect modern-day geopolitical realities.
  • Trumps’ offer to expand G7 fitted into New Delhi’s idea of being part of the global high table.
  • With an assertive China looming, the US is calling all like-minded countries to partner in dealing with Beijing.
  • If Biden and Johnson want to take the leap forward and constitute a global democratic alliance of 10-11 countries, it will be an important signal.
  • India is likely to get vaccines from the US — both directly as well as through COVAX. Initial estimates suggest India will get about 2 to 3 million vaccines in the first tranche.

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G20 : Economic Cooperation ahead

G7 members endorse global minimum tax

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7, Global Minimum Tax

Mains level: Global Minimum Tax negotiaitions

Finance Ministers from the Group of Seven (G7) rich nations have reached a landmark accord setting a global minimum corporate tax rate, an agreement that could form the basis of a worldwide deal.

Why a global minimum?

  • Major economies are aiming to discourage multinationals from shifting profits — and tax revenues — to low-tax countries regardless of where their sales are made.
  • Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries.
  • With its proposal for a minimum 15% tax rate, the Biden administration hopes to reduce such tax base erosion without putting American firms at a financial disadvantage, allowing competition on innovation, infrastructure and other attributes.

Where are the talks at?

  • The G7 talks feed into a much broader, existing effort.
  • The OECD has been coordinating tax negotiations among 140 countries for years on rules for taxing cross-border digital services and curbing tax base erosion, including a global corporate minimum tax.
  • The OECD and G20 countries aim to reach a consensus on both by mid-year, but the talks on a global corporate minimum are technically simpler and less contentious.
  • If a broad consensus is reached, it will be extremely hard for any low-tax country to try and block an accord.

How would a global minimum tax work?

  • The global minimum tax rate would apply to overseas profits.
  • Governments could still set whatever local corporate tax rate they want, but if companies pay lower rates in a particular country, their home governments could “top-up” their taxes to the minimum rate.
  • This would eliminate the advantage of shifting profits.

What about that minimum rate?

  • Talks are focusing on the U.S. proposal of a minimum global corporation tax rate of 15% – above the level in countries such as Ireland but below the lowest G7 level.
  • Any final agreement could have major repercussions for low-tax countries and tax havens.
  • The Irish economy has boomed with the influx of billions of dollars in investment from multinationals.
  • Dublin, which has resisted EU attempts to harmonize its tax rules, is unlikely to accept a higher minimum rate without a fight.
  • However, the battle for low-tax countries is less likely to be about scuppering the overall talks and more about building support for a minimum rate as close as possible to its 12.5% or seeking certain exemptions.

Back2Basics: G7

  • The G7 or the Group of Seven is a group of the seven most advanced economies as per the International Monetary Fund (IMF).
  • The seven countries are Canada, USA, UK, France, Germany, Japan and Italy. The EU is also represented in the G7.
  • These countries, with the seven largest IMF-described advanced economies in the world, represent 58% of the global net wealth ($317 trillion).
  • The G7 countries also represent more than 46% of the global gross domestic product (GDP) based on nominal values, and more than 32% of the global GDP based on purchasing power parity.
  • The requirements to be a member of the G7 are a high net national wealth and a high HDI (Human Development Index).

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G20 : Economic Cooperation ahead

What is the G20 Common Framework?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Paris Club, G20

Mains level: Not Much

Chad has become the first country to officially request a debt restructuring under a new common framework “G20 Common Framework” introduced by China and other Group of 20 countries last year with the help of the Paris Club.

What is G20 Common Framework?

  • G20 Common Framework is the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (DSSI).
  • It was announced in November 2020 to deal with the issue of unsustainable debts faced by various countries as an impact of COVID-19.

What is the news?

  • This official request of Chad for debt restructuring under the G20 common framework was notified by the International Monetary Fund (IMF).
  • The creditors will now soon begin discussions on the first test of the new framework.
  • The creditors will also ask China and other private-sector creditors to participate as agreed last year.
  • A new four-year programme of Chad worth about $560 million under the Extended Credit and Extended Fund facilities was announced by IMF.
  • Chad is under high debt like many other African countries.

Significance of the move

  • This is the first time that a country has requested debt restructuring under the framework and the investors will now look at how the framework can work.
  • Participation in China is also a question. Last year, G20 Common Framework brought non-members of the Paris Club- India, China, and Turkey to join the framework.

Back2Basics: Paris Club

  • Paris Club is a club or group of officials from major creditor countries.
  • It was established in the year 1956.
  • It aims to find sustainable solutions to the difficulties faced by debtor countries in payments.

 

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G20 : Economic Cooperation ahead

UK invites India to attend G7 Summit

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7. G8, G20

Mains level: G7 and its significance for India

The United Kingdom has invited PM Modi to attend the G7 summit that is scheduled to be held in June.

Note the members of G7 and G20. UPSC may puzzle you asking which G20 nation isn’t a member of G7.

G7 Countries

  • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
  • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
  • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
  • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
  • Canada joined the group in 1976, and the European Union began attending in 1977.

Evolution of the G-7

  • When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
  • And it was a cozy club for tackling issues such as the response to oil shocks.
  • Now it accounts for about 40% of global GDP.
  • Since the global financial crisis of 2007-09, it has sometimes been overshadowed by the broader g20.
  • The G-7 became the G-8 in 1997 when Russia was invited to join.
  • In 2014, Russia was debarred after it took over Crimea.

Significance of G7 for India

  • India will get more voice, more influence, and more power by entering the G7.
  • After the UN Security Council (UNSC), this is the most influential grouping.
  • If the group is expanded it will collectively address the humongous issues created by the Wuhan virus,
  • Diplomatically, a seat at the high table could help India further its security and foreign policy interests, especially at the nuclear club and UN Security Council reform as well as protecting its interests in the Indian Ocean.

Back2Basics: The G-20

  • The G-20 is a larger group of countries, which also includes G7 members.
  • The G-20 was formed in 1999, in response to a felt need to bring more countries on board to address global economic concerns.
  • Apart from the G-7 countries, the G-20 comprises Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.
  • Together, the G-20 countries make up around 80% of the world’s economy.
  • As opposed to the G-7, which discusses a broad range of issues, deliberations at the G-20 are confined to those concerning the global economy and financial markets.
  • India is slated to host a G-20 summit in 2022.

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G20 : Economic Cooperation ahead

Expanding the G7

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G7 countries

Mains level: Paper 2- Should India join expanded G7 if invited to join as a member?

There has been a call for expansion of G7 by the U.S. President. Against this backdrop, this article examines the historical background in which the group emerged. But a lot has changed since. So, it would be appropriate for G7 to adjust to the new reality. But what would be the focus of a new mechanism? What are the areas in which India would be interested? All such questions are answered in this article.

Call for expansion of G7 and China’s objection

  • Recently, the U.S. President proposed the expansion of G7 to G10 or G11,  with the inclusion of India, South Korea, Australia and possibly Russia.
  • Elaborating this logic, the White House Director of Strategic Communications said the U.S. President wanted to include other countries, including the Five Eyes countries.
  • Five Eye is an intelligence alliance comprising Australia, Canada, New Zealand, the United Kingdom and the United States.
  • The U.S. also stressed said the expanded group should talk about the future of China.
  • A Chinese Ministry of Foreign Affairs official immediately reacted, labelling it as “seeking a clique targeting China”.

Should India care about China’s objection if invited to join?

  • China’s objection to an expanded G7 is no reason for India to stay away from it, if invited to join.
  • India has attended several G7 summits earlier too, as a special invitee for its outreach sessions.
  • India’s Prime Minister was guest invited to Biarritz, France to the G7 summit last year, along with other heads of government.

The historical background of G7

  • The G7 emerged as a restricted club of the rich democracies in the early 1970s.
  • The quadrupling of oil prices just after the 1973 Arab-Israeli War, when  OPEC imposed an embargo against Canada, Japan, the Netherlands, and the United States, shocked their economies.
  • Although the French were spared the embargo, the chill winds of the OPEC action reverberated around the world.
  • So, French President invited the Finance Ministers of five of the most developed members of the Organisation for Economic Cooperation and Development, the United States, Germany, Japan, Italy, and the United Kingdom, for an informal discussion on global issues.
  • This transformed into a G7 Summit of the heads of government from the following year with the inclusion of Canada in 1976.
  • And the European Commission/Community (later Union) joined as a non-enumerated member, a year later.
  • On the initiative of U.S. President Bill Clinton and British Prime Minister Tony Blair, the G7 became the G8, with the Russian Federation joining the club in 1998.
  • This ended with Russia’s expulsion following the annexation of Crimea in 2014.

Declining share G7 and rising of E7 in world GDP

  • When constituted, the G7 countries accounted for close to two-thirds of global GDP.
  • According to the 2017 report of the accountancy firm, PwC, “The World in 2050”, they now account for less than a third of global GDP on a purchasing power parity (PPP) basis.
  • And less than half on market exchange rates (MER) basis.
  • The seven largest emerging economies (E7, or “Emerging 7”), comprising Brazil, China, India, Indonesia, Mexico, Russia and Turkey, account for over a third of global GDP on purchasing power parity (PPP) terms.
  • And over a quarter on MER basis.

Predictions for India

  • India’s economy is already the third largest in the world in PPP terms, even if way behind that of the U.S. and China.
  • By 2050, the PwC Report predicts, six of the seven of the world’s best performing economies will be China, India, the United States, Indonesia, Brazil, and Russia.
  • Two other E7 countries, Mexico and Turkey, also improve their position.
  • It projects that India’s GDP will increase to $17 trillion in 2030 and $42 trillion in 2050 in PPP terms, in second place after China, just ahead of the United States.
  • This is predicated on India overcoming the challenge of COVID-19, sustaining its reform process and ensuring adequate investments in infrastructure, institutions, governance, education and health.

Limitations of G7

  • The success or otherwise of multilateral institutions are judged by the standard of whether or not they have successfully addressed the core global or regional challenges of the time.
  • The G7 failed to head off the economic downturn of 2007-08.
  • This failure led to the rise of the G20.
  • In the short span of its existence, the G20 has provided a degree of confidence, by promoting open markets, and stimulus, preventing a collapse of the global financial system.
  • The G7 also failed to address the contemporary issues, such as the COVID-19 pandemic, climate change, the challenge of the Daesh, and the crisis of state collapse in West Asia.
  • It had announced its members would phase out all fossil fuels and subsidies, but has not so far announced any plan of action to do so.
  • And their coal fired plants emit “twice more CO2 than those of the entire African continent”.

Turmoil in West Asia and failure of Europe to act

  • Three of the G7 countries, France, Germany, and the U.K., were among the top 10 countries contributing volunteers to the ISIS.
  • West Asia is in a greater state of turmoil than at any point of time since the fall of the Ottoman Empire.
  • This turmoil has led to a migrants crisis.
  • Migrant crisis persuaded many countries in Europe to renege on their western liberal values, making the Mediterranean Sea a death trap for people fleeing against fear of persecution and threat to their lives.

So, to deal with the unprecedented challenge, we need new institution

  • The global economy has stalled and COVID-19 will inevitably create widespread distress.
  • Nations need dexterity and resilience to cope with the current flux, as also a revival of multilateralism, for they have been seeking national solutions for problems that are unresolvable internally.
  • Existing international institutions have proven themselves unequal to these tasks.
  • A new mechanism might help in attenuating them.
  • It would be ideal to include in it the seven future leading economies, plus Germany, Japan, the U.K., France, Mexico, Turkey, South Korea, and Australia.
  •  The 2005 ad hoc experiment by Prime Minister Tony Blair in bringing together the G7 and the BRICS countries was a one-off.

What should be the focus of this new institution?

  • A new international mechanism will have value only if it focuses on key global issues.
  • A related aspect is how to push for observing international law and preventing the retreat from liberal values on which public goods are predicated.
  • Global public health and the revival of growth and trade in a sustainable way -that also reduces the inequalities among and within nations- would pose a huge challenge.

What should be India’s priority in new institution?

  • India would be vitally interested in three: 1) international trade, 2) climate change, 3) the COVID-19 crisis.
  • Second order priorities for India would be cross-cutting issues such as counter-terrorism and counter-proliferation.
  • An immediate concern is to ensure effective implementation of the 1975 Biological Weapons Convention .
  • And the prevention of any possible cheating by its state parties by the possible creation of new microorganisms or viruses by using recombinant technologies.
  • On regional issues, establishing a modus vivendi with Iran would be important to ensure that it does not acquire nuclear weapons and is able to contribute to peace and stability in Afghanistan, the Gulf and West Asia.
  • The end state in Afghanistan would also be of interest to India.
  • And also the reduction of tensions in the Korean Peninsula and the South China Sea.

Consider the question “There has been a clamour for expanding G7 and India is being considered as one of the prospective candidates in the expanded group. In light of this examine the challenges and opportunities for India if it gets entry into the expanded group.”

Conclusion

The decaying influence in geopolitics and declining share in the world GDP calls for the formation of the new institution. IF and when that institution comes into being India should try to address its immediate concern with the help of new mechanism based on values.

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G20 : Economic Cooperation ahead

Setting agenda for G-12

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-7 Members, their combined gdp in the world

Mains level: Paper 2- Expansion of G-7 membership

Recently, there was a call for expansion of the membership of the G-7 by the U.S. President. But the expanded group should not be seen as an anti-China gang-up. Disciplining and not isolating China is what most of the members of the group would want. And to do so, this new group needs to have new agenda. This article discusses the items that must form the part of the new agenda.

Evolution of the G-7

  • When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
  • And it was a cosy club for tackling issues such as the response to oil shocks.
  • Now it accounts for about 40% of global gdp.
  • Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader g20.
  • The G-7 became the G-8 in 1997 when Russia was invited to join.
  • In 2014, Russia was debarred after it took over Crimea.

Call for expansion of the membership

  • It was the French who first flew the kite of membership expansion.
  • France had invited heads of government of several “emerging economies” for a meeting of the group at Évian-les-Bains, France, in June 2003. 
  • After 2003, G-8 host countries began organising a meeting on the sidelines of their summits with a select group of five or six developing countries.
  • India and China were invited to all those summits.
  • Now, President Trump has, however, gone a step further.
  • Rather than invite “guests” to a G-7 summit, he has suggested expanding the G-7 to a G-10 or G-11.
  • Trump has come up with an interesting list of new members — Australia, India, South Korea and, possibly, Russia.
  • Inclusion of Russia: Trump’s pragmatism in including Russia should be welcomed.
  • The advantage of getting Russia in is that the group would not be viewed merely as an anti-China gang-up but, in fact, as a club of “free market democracies”.
  • The group could easily be made the G-12 with the inclusion of Indonesia — one of the few democratic nations in the Islamic world.

Discipline China, not isolate it

  • Trump’s motivation in expanding the G-7 to include India and Russia while keeping China out is transparent.
  • If keeping China out was not the intention, the G-7 could easily have dissolved themselves and revitalised the presently inert G-20.
  • There are, of course, good reasons why Xi Jinping’s China requires to be put on notice for its various acts of omission and commission and disrespect for international law.
  • However, disciplining China is one thing, isolating it quite another.
  • If the new group is viewed as yet another arrow in the China containment quiver it would place India and most other members of the group in a spot.
  • Everyone wants China disciplined, few would like to be seen seeking its isolation.
  • Asia needs a law-abiding China, not a sullen China.
  • Japan and Australia, have serious concerns about China’s behaviour.
  • But they may not like the new group to be viewed purely as an anti-China gang-up.
  • That may well be the case with South Korea too.
  • Indeed, even India should tread cautiously.
  • India has more issues with China than most others in the group, spanning across economic and national security issues and yet it should seek a disciplined China, not an isolated one.

So, what should be on the agenda of the new group?

  • The proposed new group should define its agenda in terms that would encourage China to return to the pre-Xi era of global good behaviour.
  • The G-7 came into being in the mid-1970s against the background of shocks to the global financial and energy markets.
  • The G-12 would come into being against the background of a global economic crisis and the disruption to global trade caused both by protectionism and a pandemic.
  • The two items on the next summit agenda would have to be the global response to the COVID-19 pandemic, the rising tide of protectionism and mercantilism and the global economic slowdown.
  • The summit will have to come forward with some international dos and don’ts to deal with the challenge posed by these disruptions.

New rules should apply to both the US and China

  • These new rules of international conduct would have to apply to both China and the US.
  • The G-12— have a shared interest in ensuring that both China and the US respect international law and desist from unilateralism in dealing with neighbours and global challenges.

Widening the agenda

  • To be able to alter China’s behaviour without isolating it, the G-12 will have to widen their agenda.
  • Widening involves going beyond the purely economic issues that the G-7 originally focused on, and include climate change, health care and human rights.

What should the “free market democracies” mean

  • In identifying themselves as “free market democracies” the G-12 must issue a new charter of respect for human rights, adherence to international law and multilateralism in trade and security.
  • This is easier said than done.
  • President Trump will have to re-assure the group’s members that he has their combined interests at heart in proposing a new group.
  • And he also has to show that he has an imagination beyond just an “America First” policy.
  • Even as the world is increasingly wary of an assertive China and of Xi Jinping’s China Dream and his version of a “China First” policy, it is also wary of Trump’s unilateralism on many fronts.

What should the invitee nations consider before joining the group?

  • Many countries share Trump’s displeasure with China for its manipulation of the World Health Organisation.
  • But many of them are equally unhappy with the manner in which the Trump administration has treated the World Trade Organisation.
  • A G-12 cannot ignore such partisan behaviour by either the US or China.
  • If Trump does issue an invitation to the three or four new members to join the new group, they should seek clarity on the terms of membership.
  • Russia’s experience, of being invited and then disinvited and now being considered for being re-invited should be a salutary message to all others invitees.

Consider the question- “The expanded new G-12 with India as its member, should also needs new agenda with its focus beyond China. Comment.”

Conclusion

As the world’s largest free market democracy India deserves to be a member of not just a G-12 but of even a new G-7. India’s political and economic credentials are certainly stronger than those of Canada, Britain and Italy.

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G20 : Economic Cooperation ahead

G-7

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-20, G-7 members

Mains level: Significance of the these groups of counries and their say in global economy

Calling the existing Group of Seven (G-7) club a “very outdated group of countries”, US Prez. Trump said that he wanted to include India, Russia, South Korea, and Australia in the group.

Note the members of G7 and G20. UPSC may puzzle you asking which G20 nation isn’t a member of G7.

The Group of 7

  • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
  • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
  • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
  • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
  • Canada joined the group in 1976, and the European Union began attending in 1977.

Evolution of the G-7

  • When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
  • And it was a cosy club for tackling issues such as the response to oil shocks.
  • Now it accounts for about 40% of global gdp.
  • Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader g20.
  • The G-7 became the G-8 in 1997 when Russia was invited to join.
  • In 2014, Russia was debarred after it took over Crimea.

Expelling Russia

  • The G-7 was known as the ‘G-8’ for several years after the original seven were joined by Russia in 1997.
  • The Group returned to being called G-7 after Russia was expelled as a member in 2014 following the latter’s annexation of the Crimea region of Ukraine.
  • Since his election in 2016, President Trump has suggested on several occasions that Russia be added again, given what he described as Moscow’s global strategic importance.

Why Trump wants to expand the G7 group?

1.Joint  front against China

  •  The expanded G7 is seen as an attempt by the US to form a joint front against China.
  • The US President has stepped up his criticism of the Asian powerhouse over a range of issues, from initially holding back information on the coronavirus outbreak to its actions on Taiwan and changes in Hong Kong’s special status.

2.Pressure  from G7 countries

  • Another reason is Trump has faced heat from other G7 members in the last two summits, for various controversial decisions taken by him such as pulling out from trade deals, the Iran nuclear deal as well as the Paris climate pact.
  • Trump’s “America First” policy and his attacks on key US allies over various trade and economic issues have created faultlines within the grouping.

3.Add more weight to the grouping’s profile. 

The participation and eventual inclusion of Australia, South Korea, Russia (not favoured by the UK) and India could certainly add more weight to the grouping’s profile.

Why G7 needs a revival?

  • The rise of India, China, and Brazil over the past few decades has reduced the G-7’s relevance, whose share in global GDP has now fallen to around 40%.

Relevance of G7 for India

  • India will get more voice, more influence and more power by entering the G7.
  • After UN Security Council (UNSC), this is the most influential grouping.
  • If the group is expanded it will collectively address the humongous issues created by the Wuhan virus,
  • Diplomatically, a seat at the high table could help New Delhi further its security and foreign policy interests, especially at the nuclear club and UN Security Council reform as well as protecting its interests in the Indian Ocean.

Challenges in India’s entry

1.Lack of consensus:

  • The decision to expand the grouping cannot be taken by the US alone.
  • Other members such as the UK, France, Germany, Italy, Japan and Canada, have to not only agree to Trump’s proposal to expand the grouping but also on the new members that he wants to add, said a diplomatic source of one of the G7 member countries.

2.Upset China:

  • China is upset at the plans to expand the G7, stating that such actions will result in the creation of a “small circle” against Beijing and thus such a plan is “doomed to fail”.
  • China will put pressure on G-7 countries

Discipline China, not isolate it

  • Trump’s motivation in expanding the G-7 to include India and Russia while keeping China out is transparent.
  • If keeping China out was not the intention, the G-7 could easily have dissolved themselves and revitalised the presently inert G-20.
  • There are, of course, good reasons why Xi Jinping’s China requires to be put on notice for its various acts of omission and commission and disrespect for international law.
  • However, disciplining China is one thing, isolating it quite another.
  • If the new group is viewed as yet another arrow in the China containment quiver, it would place India and most other members of the group in a spot.
  • Everyone wants China disciplined, few would like to be seen seeking its isolation.
  • Asia needs a law-abiding China, not a sullen China.
  • Japan and Australia, have serious concerns about China’s behaviour.
  • But they may not like the new group to be viewed purely as an anti-China gang-up.
  • That may well be the case with South Korea too.
  • Indeed, even India should tread cautiously.
  • India has more issues with China than most others in the group, spanning across economic and national security issues and yet it should seek a disciplined China, not an isolated one.

So, what should be on the agenda of the new group?

  • The proposed expanded G7 group should define its agenda in terms that would encourage China to return to the pre-Xi era of global good behaviour.
  • The G-7 came into being in the mid-1970s against the background of shocks to the global financial and energy markets.
  • The G-12(proposed expanded group)  would come into being against the background of a global economic crisis and the disruption to global trade caused both by protectionism and a pandemic.
  • The two items on the next summit agenda would have to be the global response to the COVID-19 pandemic, the rising tide of protectionism and mercantilism and the global economic slowdown.
  • The summit will have to come forward with some international dos and don’ts to deal with the challenge posed by these disruptions.
  • New rules should apply to both the US and China: These new rules of international conduct would have to apply to both China and the US.
  • Widening the agenda: To be able to alter China’s behaviour without isolating it, the expanded group will have to widen their agenda.
  • Widening involves going beyond the purely economic issues that the G-7 originally focused on, and include climate change, health care and human rights.

Back2Basics: The G-20

  • The G-20 is a larger group of countries, which also includes G7 members.
  • The G-20 was formed in 1999, in response to a felt need to bring more countries on board to address global economic concerns.
  • Apart from the G-7 countries, the G-20 comprises Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.
  • Together, the G-20 countries make up around 80% of the world’s economy.
  • As opposed to the G-7, which discusses a broad range of issues, deliberations at the G-20 are confined to those concerning the global economy and financial markets.
  • India is slated to host a G-20 summit in 2022.

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G20 : Economic Cooperation ahead

The deep void in global leadership

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- International cooperation to deal with the coronavirus is a need of the hour.

Context

The coronavirus’s flight across the world at lightning speed has exposed the total void in collective leadership at the global level.

No global plan of action to combat the virus

  • No plan of action: Three months into the catastrophic war declared by an invisible virus, there is as yet no comprehensive, concerted plan of action, orchestrated by global leaders.
  • The G20 meeting: The G20 has just had a virtual meeting, at the prodding of Prime Minister Narendra Modi.
  • $ 5-trillion into the world economy: It is encouraging to learn that the G20 leaders have agreed to inject $5-trillion into the world economy to partially counter the devastating economic impact of the pandemic. This is indeed good news.
  • Need to do more: But taking collective ownership to fight a global war against the virus will require a lot more than writing cheques.

SAARC meeting stands out in the world

  • Pandemic is not treated as a common enemy: World leaders are obviously overwhelmed with their own national challenges and do not appear inclined to view the pandemic as a common enemy against mankind, which it is.
  • Delay in reporting by China: China delayed reporting the virus to the World Health Organisation (WHO), and perhaps, contributed to the exacerbation of the spread of the virus across the globe.
  • Unilateral suspension of flight by the US: It was reported that the Trump administration did not even inform the European Union before it shut off flights from Europe.
  • Why the SAARC meeting stands out? It must be acknowledged that the initiative taken by Mr Modi in the early days to convene a meeting of South Asian Association for Regional Cooperation countries stands out in contrast to the pusillanimous leadership around the world.

Need for leaders of nations to come together for collective global action.

  • Pandemic to persist: There is no evidence that, at the global level, the pandemic has abated yet and would be brought under control soon.
  • Massive lockdown, not a solution: To imagine that nations would be able to tame the virus soon with massive shutdowns might be just wishful thinking.
  • National shutdowns and physical distancing have been a challenge not only in the United States and some European countries, but it would also be more so in populous countries such as India.
  • At any rate, such lockouts come at enormous economic and social costs.
  • The utility of long suspension of international travel: As long as the virus is alive in some corner of the world, it would resume its travel across the world the moment international travel restrictions are relaxed.
  • Is it realistic to imagine that international travel will remain suspended until the last virus alive on this planet is extinguished?
  • This is a war. A good war against a bad enemy, and a common enemy, that respects no borders.
  • It is a global challenge to be fought by collective global leadership: If this global challenge is not a battle to be fought by a collective global leadership, nothing else is.
  • And yet, the typical response by all affected nations has been to impose ‘National distancing’ by closing borders.
  • While this is no doubt, a most appropriate response, there is a much bigger and emergent need for leaders of nations to come together for collective global action.

Two reasons for the lack of collective global action

  • 1. Right-wing nationalism: The swing towards right-wing nationalism, as a guiding political ideology, in large swathes of the world, particularly in the U.S.
  • This ideology posits ‘global good’ being in conflict with and inimical to national interests.
  • 2. Ineffectiveness of the multilateral institutions: The United Nations was the outcome of the shared vision of the world leaders after World War II, that collective action is the only way forward to prevent the occurrence of another war.
  • That institution has notoriously failed to live up to its expectations to maintain peace among nations in the nearly 80 years since its formation.
  • Its affiliate organisations have, in several ways, failed to deliver on their lofty missions.
  • In particular WHO has proven to be too lethargic in reacting to pandemics in the past.
  • Its responses to COVID-19 has come under the scanner, not merely for incompetence, but also for lack of intellectual integrity.

G-20 offers hope

  • A nimble outfit, not burdened with bureaucracy, is required to manage a global crisis of the nature that we are confronted with, today.
  • The G20, with co-option of other affected countries, itself might serve the purpose for the present.
  • What the global leadership must acknowledge: What is important is for the global leaders to acknowledge what every foot soldier knows: winning a war would require the right strategy, rapid mobilisation of relevant resources and, most importantly, timely action.
  • The following actions should come out of such a collective-
  • 1. Dealing with the shortages: The collective should ensure that shortages of drugs, medical equipment and protective gear do not come in the way of any nation’s capacity to contain or fight the pandemic.
  • Assistance from other countries: It is very likely that some nations that have succeeded in bringing the pandemic under control, such as China, Japan or South Korea, might have the capability to step up production at short notice to meet the increasing demand from other countries which are behind the curve.
  •  Development of information exchange: This would typically involve urgent development of information exchange on global production capacity, present and potential, demand and supply.
  • This is not to mean that there should be centralised management, which is not only infeasible but counterproductive, as the attendant bureaucracy will impede quick action.
  • A common information exchange could restrain the richer countries from predatory contracting of global capacities.
  • 2. Protocol among participant countries: Protocols might need to be put in place among participating countries to ensure seamless logistics for the supply chain for essential goods and services to function efficiently.
  • This might be particularly necessary in the context of controls on international traffic and national shutdowns.
  • There would need to be concomitant accord to eliminate all kinds of tariff and non-tariff barriers.
  • 3. Exchange of information: There needs to be an instantaneous exchange of authenticated information on what clinical solutions have succeeded and what has not.
  • A classic example is an issue relating to hydroxychloroquine, which is being used experimentally, bypassing the rigours of randomised clinical trials.
  • While there is no substitute to classic clinical proof, the more field-level information is shared within the medical community, the better will be the success rates of such experimentation.
  • 4.Cross country collaboration on the trials: This is a time to have cross-country collaboration on laboratory trials and clinical validation for vaccines and anti-viral drugs.
  • It must be acknowledged that WHO has already moved on this issue, although, perhaps, belatedly.
  • The best way to ensure speedy research is to pool global resources.
  • This attempt to collaborate might also bring in its wake an acceptable commercial solution that adequately incentivises private research while ensuring benefits being available to the entire world at affordable costs.
  • Such a framework might be necessary for sustained collaborations for future challenges.
  • 5. Easy movement of trained health professionals: There is a need to facilitate easy movement of trained health professionals across the world to train others and augment resources wherever there are shortages.
  • In other words, nations should come together to organise a global army to fight the pandemic, equipped with the best weapons and tools.
  • 6. The anticipation of food shortages: We must anticipate food shortages occurring sooner or later, in some part of the world, consequent to the national shutdowns.
  • Ironically, while we might have saved lives from the assault of the novel coronavirus, we might run the risk of losing lives to starvation and malnutrition, somewhere in the world if we do not take adequate precautions.
  • This requires not only coordinated global action; it would also turn out to be the test of global concern for mankind in general.

Reconstruction of the global economy

  • Devastation no less than after the world war: Eventually, there is no doubt that human talent will triumph over the microscopic virus. But the economic devastation, that would have been caused as a result will be no less than the aftermath of a world war.
  • What should the reconstruction of economy involve? An orderly reconstruction of the global economy, which is equitable and inclusive, will eventually involve renegotiating terms of trade among key trading blocs, concerted action among central bankers to stabilise currencies, and a responsible way to regulate and manage global commodity markets.

Conclusion

Does India have the power to awaken the conscience of the Superpowers and catalyse collective global action? Remember, historically, it is always the weakling or the oppressed, who have caused transformational changes in the world order.

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G20 : Economic Cooperation ahead

[pib] Virtual Summit of G20 Leaders

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-20 countries

Mains level: Global cooperation for COVID-19 pandemic

A Virtual G20 Leaders’ Summit was recently convened yesterday to discuss the challenges posed by the outbreak of the COVID-19 pandemic and to forge a globally coordinated response.

About G20

  • 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 the 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 organisation.

Member Countries

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.

 Who are the G20 Sherpas?

  • A Sherpa is the personal representative of a head of state or government who prepares an international summit, particularly the annual G7 and G20 summits.
  • Between the summits, there are multiple Sherpa conferences where possible agreements are laid out.
  • This reduces the amount of time and resources required at the negotiations of the heads of state at the final summit.
  • The Sherpa is generally quite influential, although they do not have the authority to make a final decision about any given agreement.
  • The name is derived from the Sherpa people, a Nepalese ethnic group, who serve as guides and porters in the Himalayas, a reference to the fact that the Sherpa clears the way for a head of state at a major summit.

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