The G20 Summit 2023 just concluded in New Delhi under the Indian Presidency. The PM of India passed the gavel to Brazil, the next G20 President. The 18th meeting of the Group of Twenty was the first G20 summit to be held in India.
- The G20 or Group of Twenty isan intergovernmental forum comprising 19 countries and the European Union (EU)
- The G20 is composed of most of the world’s largest economies, including both industrialized and developing nations, and accounts for around 90% of gross world product (GWP), 75–80% of international trade, two-thirds of the global population, and roughly half the world’s land area
- The G20 was founded in 1999 in response to several world economic crises
- Since 2008, it has convened at least once a year, with summits involving each member’s head of government or state, finance minister, foreign minister, and other high-ranking officials; the EU is represented by the European Commission and the European Central Bank
G20 India Presidency
The G20 is made up of 19 countries and the EU.
- The 19 countries are Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, the Russian Federation, Saudi Arabia, South Africa, Turkey, the UK, and the US.
India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023.
Under the Indian Presidency, the G20 in 2023 focussed on the theme, ‘One Earth, One Family, One Future’.
- The theme affirms the value of human, animal, plant, and microorganisms and their interconnectedness on planet Earth and in the wider universe.
- The Indian Presidency will also spotlight Lifestyle for Environment (LiFE), with an emphasis on environmentally sustainable and responsible choices at both the individual lifestyle and the national development level, to achieve a cleaner, greener, and bluer future.
The 2023 G20 Summit, hosted by India, was a significant event that brought together leaders from the world’s largest economies to discuss pressing global issues. This summit yielded several key outcomes that are relevant not only on an international scale but also for common citizens who are interested in global affairs.
The scheduling of the G20 Summit was also well-timed, occurring after India’s successful moon landing as part of the Chandrayaan-3 program.
G20 New Delhi Declaration: The 2023 G20 New Delhi Leaders’ Declaration, comprising 83 paragraphs, received unanimous approval, achieving a remarkable 100 percent consensus, with notable participation even from China and Russia. Importantly, this declaration is distinguished by its absence of footnotes or the Chair’s Summary, making it a historic milestone.
The G20 New Delhi Leaders’ Declaration also included pledges to incorporate Lifestyle for Environment (LiFE) into mainstream practices, carry out sustainable energy transitions, offer sustainable financial solutions, reiterate the dedication to achieving Sustainable Development Goals (SDGs), combat plastic pollution, safeguard the ocean-based economy, and various other commitments.
Finance Track: During its G20 presidency, India effectively delivered on its Finance Track objectives. Key achievements include bolstering multilateral development banks (MDBs), shaping a global policy for crypto assets, addressing debt in lower and middle-income nations, supporting sustainable urban financing, etc.
Climate Change: Concerning climate change, the declaration emphasized the need to secure financing for clean energy technologies by 2030 to work towards achieving net-zero emissions by 2050. It called for a significant escalation in climate funding, transitioning from billions to trillions of dollars.
African Union accepted as part of the G20: The 2023 G20 welcomed the inclusion of the African Union. Prior to this, the G20 had just one African member, which was South Africa. During the G20 Summit in New Delhi, the African Union, representing all 55 African nations, was granted full membership, similar to the representation of the European Union.
India – Middle East – Europe Economic Corridor (IMEC): During the G20 Summit in New Delhi, a Memorandum of Understanding (MoU) was signed to establish the India – Middle East – Europe Economic Corridor. IMEC is designed to be a network of transportation routes, including railways and sea lanes, with its core aim being the facilitation of economic growth by encouraging connectivity and collaboration among Asia, the Arabian Gulf, and Europe. The project falls under the umbrella of the Partnership for Global Infrastructure Investment (PGII), an initiative led by Western nations to support infrastructure projects worldwide.
Global Economic Situation
- To protect the vulnerable, through promoting equitable growth and enhancing macroeconomic and financial stability. Such an approach will help resolve the cost-of-living crisis and unlock strong, sustainable, balanced, and inclusive growth.
- To support the progress towards the 2030 Agenda for Sustainable Development to achieve strong, sustainable, balanced, and inclusive growth (SSBIG).
- To create inclusive, sustainable, and resilient global value chains, and support developing countries to move up the value chain.
- Chair rotation
- To decide which member nation gets to chair the G20 leaders’ meeting for a given year, all members, except the European Union, are assigned to one of five different groupings
- All countries within a group are eligible to take over the G20 Presidency when it is their group’s turn. Therefore, the states within the relevant group need to negotiate among themselves to select the next G20 President
- The G20 operates without a permanent secretariat or staff
- The incumbent chair establishes a temporary secretariat for the duration of its term, which coordinates the group’s work and organizes its meetings
- The 2023 and 2024 summits will be hosted by India and Brazil respectively
- In addition to these 20 members, the chief executive officers of several other international forums and institutions participate in meetings of the G20
- G20 Agenda
- Financial Focus
- The initial G20 agenda focused on the sustainability of sovereign debt and global financial stability in an inclusive format that would bring in the largest developing economies as equal partners
- Further, the recurring themes covered by G20 summit participants have related in priority to global economic growth, international trade and financial market regulation
- Inclusive growth
- After the adoption of the UN Sustainable Development Goals and the Paris Climate Agreement in 2015, more “issues of global significance” were added to the G20 agenda, which include migration, digitisation, employment, healthcare, the economic empowerment of women and development aid
- Financial Focus