What is G20 ?
By Project Shaurya Staff
G20 or ‘Group of twenty’ is an international stage that brings together leading 20 economies of the world. The group accounts for 85% of world’s GDP and 2/3rd of world population.
The first G20 summit was held in Berlin in December 1999. It is a forum where the economies discuss issues related to financial crisis, agriculture, health etc.
Who are the member countries of G20 ?
The member countries include :
- India 🇮🇳
- Argentina 🇦🇷
- Australia 🇦🇺
- China 🇨🇳
- Brazil 🇧🇷
- Canada 🇨🇦
- Indonesia 🇮🇩
- Italy 🇮🇹
- Japan 🇯🇵
- Mexico 🇲🇽
- USA 🇺🇸
- Russia 🇷🇺
- Saudi Arabia 🇸🇦
- South Korea 🇰🇷
- Turkey 🇹🇷
- UK 🇬🇧
- South Africa 🇿🇦
- Germany 🇩🇪
- France 🇫🇷
- European Union 🇪🇺
When do they meet ?
Usually meetings are held once a year, but in case of global economic crisis they can meet on urgent basis.
Before the summit senior officials known as ‘sherpas’ thrash out the issues for discussions.
Issues addressed till date:
2008, Washington DC, USA
- A common understanding of chronic causes of global crisis and actions taken to address the immediate crisis was developed.
- An agreement on common principles for reforming financial markets was concluded.
2009, London, UK
- New financial stability board was established to collaborate with IMF to provide early warning of financial risks.
- To take actions against safe havens of Tax Thieves.
2009, Pittsburgh, USA
“Framework for strong ,sustainable and balanced growth”
- A decision to reform IFIs was taken.
- World Bank increased 3% voting power for developing countries .
2010, Toronto, Canada
“recovery and new beginning”
- Differentiated approach to consolidated growth and recovery.
- High level development working groups was created.
2010, Seoul, South Korea
“shared growth beyond crisis”
- Development agenda was proposed for infrastructure, HR Development, Trade, Private investment, Job creation etc
2011, Cannes, France
“Building our common future :renewed collective action for benefit for all”
- Regulation of commodity driven markets.
2012, San Jose del caba, Mexico
- Development policy green growth trade and employment.
2013, Saint Peters burg, Russia
- Not to introduce new trade protectionist measure until the end of 2016.
- Promotion of OCED at addressing Tax base erosion and Profit Shifting.
- To implement financial regulatory reforms and International Monetary Fund.
2014, Brisbane, Australia
- To establish global infrastructure and knowledge sharing platform.
- Revival of pending governance and quota reforms.
- Formulating collaboration on energy efficiency and formulating effective action plan to address climate change.
2015, Belek, Turkey
- A separate statement on combating terrorism was released.
- Leaders called in all states to strengthen their response to contribute to refugee crisis in Middle East and Migration issues in southern Europe.
2016, Huizhou, China
“Toward an innovative , invigorated , interconnected , Inclusive World Economy”
- US and China give green light to Paris Agreement.
- China promoted OBOR and AIIB initiatives.
- All member countries were told to rectify WTO Trade Facilitation Agreement by December 2016.
2017, Hamburg, Germany
- Laid out group strategy for achieving strong, sustainable, balanced and inclusive growth.
- Placed emphasis on the need for trade deals to be non discriminative towards developing countries.
- In spite of US withdrawal from Paris Agreement, German presidency tried it’s best to make most out of renewed public policy interest for environmental sustainability.
- US and Russia reached Syrian ceasefire agreement.
The 2018 summit is scheduled in November this year, the Sherpa meeting was held from 23-24 August,2018.
The theme being “being consensus for fair and sustainable development”
India’s role so far : India has been doing well on the international stage so far. Our prime focus is on counter terrorism, infrastructure development , inclusive economic growth, and to balance the world economy with national interests. India was ranked 130 in World Bank’s doing business Ranking in 2016-17.
The G20 mentioned the various steps taken by the Indian Government such as increased prevalence of derivative instruments in electronic trading as well as promotion of ECBs . The start up India initiative of Modi is also praised.
The introduction of GST is only set to aid India’s aims of increased financial stability ,ease of doing business and better standing in world economy.
The bilateral interactions with world leaders are a step forward to enhance trade relations and bring foreign investment to India. Meanwhile the world ranking to be released in few months is supposed to yield positive results.
India’s role in presidency : India wanted to host the 2018 summit itself but Argentina refused to swap. Now Japan will host in 2019 and India will have to wait for few more years before Asia gets it’s turn.
Significance of G20 : It is a forum that serves as a platform for global cooperation , but the agreements and decisions made during the event have no legal impact , but they can influence a country’s policy-making agenda.