The history, geography, and politics of G20: understanding the alliance
Updated: Sep 10th, 2023
G20 India Presidency (img: IANS) |
World is buzzing with the discussion around the G20 for many days now. All eyes are looking at India’s capital New Delhi as it plays host to the G20 Summit today and tomorrow.
The G20 has both developed and developing countries in it. This is unique only to this group, as other groups like G7 and G77 only consist of developed and developing countries, respectively. However, the inclusivity is not the only defining factor of the G20.
We bring to you a low down of the historical and political impact of G20, as India plays host to world leaders and holds important discussions with participating members.
G20 Summit member countries
G20 is made up of 19 countries, the European Union, and the African Union. The list of countries included in the G20 are:
- Argentina
- Australia
- Brazil
- China
- Canada
- France
- Germany
- India
- Indonesia
- Italy
- Japan
- Republic of Korea
- Mexico
- Russia
- Saudi Arabia
- South Africa
- Turkey
- United Kingdom
- United States
- European Union
- African Union
Besides the member countries, Spain is invited as a permanent guest.
Other permanent guests of G20 include:
- Association of Southeast Asian Nations (ASEAN)
- Financial Stability Board (FSB)
- International Labour Organization (ILO)
- International Monetary Fund (IMF)
- New Partnership for Africa’s Development (AUDA-NEPAD)
- Organisation for Economic Co-operation and Development (OECD)
- United Nations (UN)
- World Bank Group (WBG)
- World Health Organization (WHO)
- World Trade Organization (WTO)
History of G20
The group, in its essence, was formed for economic cooperation in 1999. It was first foreshadowed in June ’99 during a G7 summit and was formally established in Sept ’99 at the G7 finance ministers’ meeting.
The initiative was taken by Paul Martin and Larry Summers, the finance ministers of Canada, and the USA, respectively, to tackle the huge financial problems in the late 90s, be it the Mexican peso crisis, followed by the ’97 Asian financial crisis, the ’98 Russian financial crisis, and more.
All back-to-back crises showed Martin and Summers that in a world that was becoming more connected globally, the existing groups like the G7 couldn’t keep the world’s finances stable.
Therefore, a new, bigger group of major world economies was created, that could work together to make sure things stayed stable and that these economies had a say in how to do it.
The purpose
The group promotes international financial stability and sustainable economic growth. Leaders of member countries come together to discuss economic policies, financial regulations, trade and other issues affecting the global economy through the G20 summit.
Over the years, however, the summit has also addressed global challenges such as climate change, cyber security, public health, poverty reduction and development. The summit provides a platform for world leaders to come together on these issues.
How big is G20?
Barring the African Union that has been currently added, G20 represents approximately 80% of the world’s total economic output (Gross World Product or GWP), 75% of worldwide trade, comprises two-thirds of the global population, and encompasses around 60% of the Earth’s land area.
Image: IANS |
With such a large representation, the presidency of G20 becomes all the more important for the member nations, which is a rotational process.
Troika and Two Operation Tracks of G20
To maintain the continuity in the policy and seamless operations among G20 member countries, the previous, current, and future president countries work together in G20.
The grouping of three member countries, known as troika, is made of the previous, the current, and the next president’s country. The current troika involves Indonesia, India, and Brazil.
To make the G20 Summit a success, two tracks work parallel: the financial track, and the sherpa track.
Sherpas are chosen as special representatives by the leaders of member countries. These Sherpas have the important job of supervising the year-round negotiations, discussing what topics should be on the summit’s agenda, and organising the important work of the G20.
Both tracks have working groups that focus on particular issues and include representatives from relevant parties.
India’s G20 presidency
India got the presidency of the G20 presidency right as the world was coming out of the economic deficit due to the COVID-19 pandemic. Though it posed challenges of its own, it was up to India to turn it into something positive.
The official government statement declared that India’s G20 priorities revolve around inclusive, equitable and sustainable growth; LiFE (Lifestyle For Environment); women’s empowerment; digital public infrastructure and tech-enabled development in areas ranging from health, agriculture and education to commerce, skill-mapping, culture and tourism; climate financing; circular economy; global food security; energy security; green hydrogen; disaster risk reduction and resilience; developmental cooperation; fight against economic crime; and multilateral reforms.
However, India’s own issues with China over borders, and the global stand on the Russia-Ukraine crisis has been a tough hurdle to cross. The glaring absence of two of the powerhouses, China’s Xi Jinping and Russia’s Vladimir Putin, was a testament to that challenge.
Why was the G20 presidency important to India despite challenges?
The G20 presidency was an opportunity for India to cement its place as someone who has a voice in global matters. India’s push for adding the African Union to the G20 was also seen as a move to establish that.
Moreover, the trade/economy deals, deals such as the Middle East railway network with India, and representation of the ‘Global South’ by India are sure to help elevate India’s image. This was, thus, India’s chance to welcome the world to its doorsteps and exhibit what the country has to offer.
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