INDIA'S G-20 PRESIDENCY – INTERNATIONAL

News: India’s presidency of G-20 gives it additional heft at G-7 summit

 

What is in the news?

       On the sidelines of the G-7, Prime Minister has said that aligning the G-20 agenda with Japan’s agenda for the G-7 summit is key for the just global order.

 

Importance Issues Before G-20 Presidency to India:

1. Geopolitical Issues:

       The world is struggling with geopolitical rifts such as the tensions between the US and China, the two biggest economies in the world, or the decline in trade between the UK, the Euro area in the wake of the Brexit decision.

2. Economic Crumpling:

       In response to high inflation, central banks across countries have raised interest rates, which, in turn, have dampened economic activity further.

       Some of the biggest major economies such as the US and the UK are set to face a recession; others, such as those in the euro area, are likely to slow down to almost a halt.

3. Supply Chain Issue:

       Russia’s invasion of Ukraine has not only created massive geopolitical uncertainty but also spiked global inflation, thanks to supply bottlenecks and curbs across a whole host of commodities.

4. Polarization:

       The growing polarization between democratic nations led by the US and authoritarian regimes centered around China is making the situation more complicated.

5. Gap Between Global South and Global North:

       Primary requirements of the global south include capital, technology, and capacity building to tackle underdevelopment, poverty, and climate change.

       India faces the challenge of uniting leaders from both the global south and the global north to minimize this gap and facilitate more effective resolution of these issues.

 

G-20 Initiatives under India's Presidency:

1.  G20 Trade and Investment Working Group:

       To propose a common digital platform for ease of cross-border trade,

       Legal aid system for developing countries for dispute settlement in WTO,

       Ways to eliminate distortionary non-tariff measures for developing countries and LDCs, and

       A framework to address crucial issues at the WTO in clearly defined circumstances like the Covid-19 pandemic.

2. Startup20 Engagement Group:

       The Startup20 Engagement Group will be established under India's G20 Presidency for the first time, recognizing the role of startups in driving innovation that responds to a rapidly changing global scenario.

3. Disaster Risk Reduction Working Group:

       The DRRWG is an initiative taken by India under its G-20 Presidency.

       It was established to encourage collective work by the G20, undertake multidisciplinary research and exchange best.

       This initiative of India to include Disaster Risk Reduction in the G-20 is a part of the Sendai Framework for Disaster Risk Reduction 2015 to 2030.

4. Voice of the Global South Summit:

       Global-South Science and Technology Initiative: To share expertise in areas like space technology and nuclear energy.

       Global-South Center of Excellence:  To undertake research on development solutions or best-practices of any developing nation.

       Global-South Scholarships:  For students from developing countries to pursue higher education in India.

       Global-South Young Diplomats Forum:  To connect youthful officers of our foreign ministries and to synergize the country’s diplomatic voice.

5.Aarogya Maitri:

       Under this project India will provide essential medical supplies to any developing country affected by natural disasters or humanitarian crisis.

6. Digital Economy Working Group:

       Digital Economy Working Group with a motive to enhance cooperation among the G20 members in the field of the digital economy and to reap the benefits of ongoing digital transformation.

 7. Stay Safe Online:

       stay safe online’ campaign was launched to create awareness about the best cyber practices and to ensure cyber hygiene. 

8. G20 Digital Innovation Alliance:

       The alliance is an attempt towards boosting adoption of innovative and digital technologies in the G20 sphere and to encourage innovations in six key fields:

       Agri-tech, Health-tech, Ed-tech, Fin-tech, Secured Digital Infrastructure, and Circular Economy.

 

WAY FORWARD:

1. Climate Finance:

       India needs to focus on climate financing and encourage wealthy nations to transfer clean technologies and renewable energies to medium and low-income countries, while highlighting its impressive track record in solar energy.

2. Ensure Global Supply Chain:

       Due to the Russia -Ukraine war global supply chain has collapsed as Russia is the major exporter of food commodities to most of the countries.

       India in the name of G-20 Presidency should reassure the food security and global supply chain in the lines of 'Black Sea Grain Initiative'.

3. Promotion of Welfare of Global South:

       From social justice projects to digital transformation, climate and environmental activism to pandemic and disaster relief, India can provide proven solutions and be a Global South transformer.

4. Technological Transformation:

       As G20 Presidency, India can foreground its belief in a human-centric approach to technology, and facilitate greater knowledge-sharing in priority areas like digital public infrastructure, financial inclusion, and tech-enabled development in sectors ranging from agriculture to education.

5. Multilateral Reforms:

       India's G20 priority will be to continue pressing for reformed multilateralism that creates a more accountable, inclusive, just equitable and representative multipolar international system that is fit for addressing the challenges in the 21st century.

6. Achieving Sustainable Development Goals:

       India, as the G20 Presidency, should aim to prioritize the attainment of the 2030 Agenda for Sustainable Development amidst the COVID-19 pandemic, shifting the focus from a decade of action to a decade of recovery.


G-20:

About:

       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.

       Its aim was to secure global financial stability by involving middle-income countries.

       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.

       Nine years later, in 2008, the leaders of the G20 countries gathered for the first G20 Summit.

       Together, the G20 countries include 60 percent of the world’s population, 80 percent of global GDP, and 75 percent of global trade.

 

Members:

       The members of the G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union.

       Presidency:

       The presidency of the G20 rotates every year among members, and the country holding the presidency, together with the previous and next presidency-holder, forms the ‘Troika’ to ensure continuity of the G20 agenda.

       Current troika:

       Indonesia

       India

       Brazil.

       Theme of India's presidency:

       “Vasudhaiva Kutumbakam” or ‘One Earth, One Family, One Future'.