G20 SUMMIT
An important turning point in India's global leadership role has been marked by its G20 chairmanship. India is directing conversations and actions among the main economies of the globe to handle complex challenges as it assumes the presidency for the first time. India is well-positioned to contribute original viewpoints to the discussion thanks to its broad economy, technical strength, and dedication to sustainable development. India has concentrated on a number of problems during its presidency, including inclusive growth, digital innovation, climate resilience, and equal access to global health care. India is strengthening its belief that "Vasudhaiva Kutumbakam," or "The World is One Family," by promoting cooperative solutions that not only benefit its own population but also advance global well-being.
MEMBERS OF THE G20
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom, and the United States make up 19 nations that make up the Group of Twenty (G20), together with the European Union. The G20 members account for nearly two-thirds of the world's population, over 75% of global trade, and 85% of the world's GDP.
Why was the G20 established, and why is it important?
After the Asian financial crisis, the group was created in 1999. It was intended to serve as a forum for finance ministers and other authorities to talk about how to regain economic stability.
In response to the worldwide financial turbulence of that year, the first leaders' summit was convened in 2008 to encourage global collaboration.
Recent years have seen the G20's agenda expand to include topics like climate change and renewable energy.
Each year, a different G20 member state holds the presidency and determines the summit's agenda.
THE G20 PRIORITIES OF INDIA?
- Green Finance, Climate Development, and Lifestyle for the Environment (LiFE)
- Growth that is Rapid, Inclusive, and Resistant
- Speeding up the SDGs' (Sustainable Development Goals) progress
- Transformation of Technology and Digital Public Infrastructure
- Institutions multilateral for the twenty-first century
- Development headed by women
What was the result of the G20 summit?
Cooperation has become more and more in jeopardy as a result of rising geopolitical tensions brought on by the Russian invasion of Ukraine and the strategic rivalry between China and the United States. Bipartisan legislative initiatives have been made in the US to deny Russia membership in the WTO and other international organizations. The inclusion of Russia in the G20 has been contentious as some Western nations seek to expel Moscow, but other members like China and Brazil have objected to that proposal.
The G20 could also experience disagreements over how to handle economic shocks that disproportionately harm emerging economies. Due to the energy crisis brought on by the conflict in Ukraine, there is a shortage of food, energy costs are skyrocketing, and there are inflationary pressures that have caused the U.S. dollar to strengthen at the expense of emerging market currencies that are weakening. As a result, more nations are appealing to international lenders for bailouts; since the start of the pandemic, the International Monetary Fund (IMF) has received requests for emergency assistance from over one hundred nations. A record high of $140 billion in IMF assistance to struggling economies was reached in 2022. A single framework for debt treatment was presented by the G20 in advance of its summit in 2020, although only four nations—Chad, Ethiopia, Ghana, and Zambia—have asked for debt relief under the framework. Different lender countries are too responsible, according to experts. Brad W. Setser, a senior fellow at CFR, stated in March 2023 that "no framework for coordination among official creditors can work if official creditors don't have enough in common in order to function together." "The so-called Common Framework" is only there in the name. A revision of the framework is currently being thought upon by international lenders.
The long-standing commitment of the group to a global order based on WTO principles of lowering tariffs and other trade obstacles has run afoul of the escalating economic rivalry between big powers in recent years. President Trump imposed a series of sanctions on China that the Biden administration had largely left in place, sparking a multifront trade conflict involving multiple G20 nations. Additionally, Biden has worked to "de-risk" the American economy from that of China. He signed the CHIPS and Science Act in August 2022, encouraging the return of advanced technology production to the country. Strict export regulations that limited China's ability to purchase specific chips created anywhere in the world with American inputs and an outbound screening regime barring some U.S. investments in critical Chinese technological industries were implemented after that move.
Regarding climate change, there is still conflict within the group. At a meeting of environment ministers in July 2021, it was claimed that Saudi Arabia, China, India, and Russia prevented a deal on the phase-out of coal consumption and fossil fuel subsidies. And after the invasion of Ukraine, Germany and other G20 nations broke their earlier commitments to stop funding fossil fuel projects abroad.
What happens on the sidelines of the summits?
In comparison to other multilateral organizations, several experts have underlined the G20's flexibility, emphasizing that it can assist in reshaping an often rigid geopolitical order. This adaptability extends to the summits themselves, where the subject of bilateral discussions between heads of state and government is frequently off the beaten path.
Because of the diplomatic importance of these meetings, whether they are prearranged or not, they frequently make headlines. Trump and Putin first met in Hamburg, Germany, in 2017, where they had numerous lengthy discussions that raised worries among U.S. allies within the G20. The G20 summit was once again overshadowed by a bilateral encounter the following year, this time between Trump and Chinese President Xi Jinping. The two leaders decided to put off the anticipated tariff increases.
The first face-to-face meeting between Biden and Xi after Biden's election in 2020 took place at the Bali summit in 2022. The two presidents agreed to maintain open channels of diplomatic communication even though they did not come to any concrete agreements.
Many scholars emphasize the important role that leaders' interpersonal interactions play in shaping foreign policy. The G20 summits provide an exceptional opportunity to forge these connections and reshape bilateral partnerships by bringing together so many world leaders.
Which G20 problems proved to be challenging?
Due to the Kashmir region's inclusion of land that both Pakistan and India claim as their own, China and Saudi Arabia abstained from a G20 tourism summit that was hosted there in May 2023.
Arunachal Pradesh and the Aksai Chin plateau were claimed as Chinese territory on a map that Beijing produced just before the summit, which sparked a dispute between China and India.
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