G20 Organization – Part 2

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

G20 Organization

Challenges

Rising Geopolitical Rifts

• The global economy is having trouble coping with rising geopolitical rifts.
• It is the conflict between the world’s two largest economies, the US and China.

Expected Recession

• While some of the world’s largest economies, including the US and the UK, are expected to experience a recession.
• It will lead to experience a slowdown or even a standstill.

Persistent High Inflation

• Consistently rising inflation, this is reaching historic highs in a number of countries.
• It has reduced purchasing power globally, slowing down economic growth.
• Central banks around the world have hiked interest rates in response to the high inflation.
• It has further slowed down economic activity.

Impact of Russia’s Invasion of Ukraine

• In addition to greatly increasing geopolitical ambiguity, Russia’s invasion of Ukraine has also significantly increased worldwide inflation.
• It is associated Western sanctions have made the situation worse.

Not legally binding

• The decisions are based on discussions and consensus which culminates in the form of declarations.
• These declarations are not legally binding.
• It’s just a consultative group of 20 members.

Polarization of Interests

• The Russian and Ukrainian Presidents are invited to the G20 Summit to be held in November, 2022.
• The U.S. has already demanded to not invite the Russian President.
• It also mentioned that the U.S. and European countries would boycott his address.
• China’s strategic rise, NATO’s expansion and Russia’s territorial aggression in Georgia and Crimea and now Russia Ukraine Conflict in 2022 have changed the global priorities.

Issues are Addressed by G20

• The G20 focuses on a broad agenda of issues of global importance.
• Although the issues pertaining to the global economy dominate the agenda, additional items have become more important in recent years, like: Financial markets, Tax and fiscal policy, Trade, Agriculture, Employment, Energy, Fight against corruption, Advancement of women in job market, 2030 agenda for Sustainable development, Climate Change, Global Health, Anti-terrorism, Inclusive entrepreneurship.

Way Forward

• The G20 cannot be a panacea for the world’s problems.
• But over the past 10 years, the G20 has been an important forum for the international cooperation.
• Effective global governance, like the G20, is essential as rising powers seek opportunities to influence and contribute to the global order.
• The G20 must strengthen the partnership with international organizations such as the IMF, the OECD, the WHO, the World Bank and the WTO, and delegate them the task of monitoring progress.
• Global Cooperation should be given priority over individual interest for the benefit of all the member countries.
• Use of Dialogue and Diplomacy should be carried out to resolve issues like Ukraine - Russia conflict and differences between Russia and the west.
• India should focus upon utilizing the G20 2023 summit as a platform to raise discussions on issues such as aggressive trade barriers/ sanctions, inter country conflicts and advocate for global peace and cooperation.

G20 and India

• Indonesia held the G20 presidency in 2022, with the G20 Bali Leaders’ Declaration released on 16 November 2022.
• India’s participation in the G20 process stems from the realization that as a major developing economy.
• India has a vital stake in the stability of the international economic and financial system.

India’s agenda at the G20 Summits

• The need to bring in greater inclusivity in the financial system
• To avoiding protectionist tendencies and
• For ensuring that growth prospects of developing countries do not suffer
• The G20 Logo draws inspiration from the vibrant colors of India’s national flag – saffron, white and green, and blue.
• India convened the G20 Leaders' Summit for the first time in 2023.
• It has 43 Heads of Delegations and largest ever in the G20 participated.
• Its final summit was conducted at New Delhi in September later this year.
• India has set “Vasudhaiva Kutumbakam” or “One Earth - One Family - One Future” as the theme for its G20 Presidency.
• It is aiming to instill a sense of unanimity essential for addressing these global challenges collectively and effectively.
• The first G20 Summit was held in 2008 in Washington DC (USA).
• It set the reforms of global finance.

• The European Union (EU) is represented as one entity in the G20.
• While each member state of the EU is a separate sovereign entity.
• The EU has a single representation in international organizations such as the G20.
• Brazil, for the first time, will host the annual meeting of the heads and prime ministers of the Group of Twenty, the group of the 20 largest economies on the planet, in 2024.

Indian Presidency in 2023

• The G20 Presidency for 2023 was passed to India.
• India has taken over the G20 Presidency on December 1^st 2022.
• India hosted nearly 200 meetings in 32 different sectors at various places all over the nation while it holds the G20 presidency.
• India will work to ensure that there is “just one world,” not a “first world or third world.”
• The G20 theme embodies India’s efforts to realize its vision of uniting the entire world in pursuit of a common goal and a better future.

Importance of 2023 Summit

• India’s G20 Presidency is a special opportunity for India to contribute to the global agenda on urgent issues of global significance.
• The first step toward a new world order for the post-Covid age was to build an international agreement on reforming multilateral organizations like the UN.
• It is an opportunity to take on the role of Global South leader.
• The increasing importance of G20 in a world where issues like global warming, the COVID-19 pandemic and the conflict in Ukraine are the pressing issues.
• India has been a member of the G20 since its inception in 1999.
• It has been actively participating in its meetings to discuss and coordinate policies on various global economic and financial issues, such as trade, investment, climate change, energy, and development.

• Therefore, requires global action, particularly regarding the money that flows into terrorist network from different parts of the world.

Economic Offenders

• Dealing with the economic offenders has been emphasized by India as a serious policy challenge for India and other countries in G20.
• India reiterated this in the Osaka Summit as well.
• India has proposed this idea and sought cooperation from other G20 countries as well.

Taxation

• G20 has already taken cognizance of this fact and has come up with the Base Erosion and Profit Sharing (BEPS) framework.
• Going further, this framework needs to be strengthened to deal with challenges from spread of Global Supply chains and expanding E-Commerce.

New Digital Technologies

• Innovations in digital technologies are rapid and spreading faster across the world.
• These summits will benefits for economic growth and social development. 
• There are certain issues such as privacy, data security and digital governance which are to be properly understood.
• Hence, India is working with these countries to tackle the vulnerabilities, and ethical issues arising out of such technologies.

Climate change

• The funding needed for developing countries to tackle Climate change, has been an issue of contention amongst the Developed countries

Reducing corruption

• Corruption is a major hindrance for equitable development in developing countries.
• Hence, no matter the level of efforts from International Diplomacy impacts at the grassroots level are not evident.

Increasing cooperation with African states

• This is imperative to reduce the inequality between the developed and developing world.

Enhanced economic cooperation

• The G20 presidency can help India deepen its economic engagement with other major economies, such as the US, China, and Japan, through bilateral meetings, discussions on trade and investment.

Addressing global challenges

• As a member of the G20, India has a stake in addressing global challenges such as climate change, poverty reduction, and health crises.
• Through this presidency, India can take a leadership role in shaping the G20's response to above issues.

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