AIR spotlight summary on India and Hangzhou G20 Summit.
The 2016 Group of Twenty (G20) Summit was held in Hangzhou, China to discuss efforts to reform Global Economic Governance. It was the eleventh meeting of the G20. G20 accounts for 85% of the world trade and two-third of world population. It consists of 19 head of the state and European Union.
Historical evolution of G20
- It was started in 1999 as an institution of Finance Minister’s of 20 countries. They would meet on the sidelines of the IMF and World Bank meeting in Washington DC. It was upgraded to a summit level in 2008 after global economic crisis.
- G20 does not have a Secretariat, does not have any staff working for it, and it is basically a leader led forum. The recommendations of G20 are advisory in nature. The G20 leaders want to conclude the Doha round of trade talks.
- The basic agenda in all these meeting is Growth. How to have better, transparent, and effective global economic governance and how to promote growth.
Highlights of the G20 Summit
- It is up to the host country to set up the agenda. China wanted to focus on Financial and Economic issues. The theme of the Summit is “Toward an Innovative, Invigorated, Interconnected and Inclusive World Economy”.
- The forum provides an opportunity for bilateral and multilateral meetings.
- Finance, Trade and Investment is the major problems in international community. At present Europe and America is out of recession but the economic growth is not much in these countries. The whole world depends on their economic growth.
- Globalization has benefitted developing countries and emerging markets like China and India. It has helped to get several millions of people out of poverty and provide them a decent standard of living.
- Developed countries in terms of climate change, environment, and economics where rich are getting richer and those at the lower segment, their prosperity is not growing at a rapid pace.
- In Developed countries the disparity between haves and have-nots are increasing. This is the reason we had BREXIT. Britain decided to come out of EU because they were forced to accept migrants to their country and migrants up their own jobs and their economy is not growing up adequately to be able to sustain that.
- Obama expressed concern about Britain coming out of EU. Many believe BREXIT is affecting the British economy.
Bilateral meeting between India and China
- There was a bilateral meeting between India and China. The two significant take away are: Our Prime Minister said, both countries should respect the strategic interests, concerns and aspirations. We have to realize the full potential of our bilateral partnership.
- Prime Minister criticized the terrorist attack on the Chinese embassy in Kyrgyzstan. No politics should be played while dealing with terrorism, because China had blocked India’s United Nations bid to ban Jaish-e-Mohammed chief Masood Azhar.
- China’s President Xi Jinping also said that the two countries should constructively handle the differences. On one side China is opposing India’s entry into NSG, Masood Azhar case, South China Sea dispute and China Pakistan Economic Corridor (CPEC) going along POK. We can see duality in Chinese stand.
- What India is doing at present is taking up these issues with China at every available opportunity.
- India is reaching out and strengthening its strategic cooperation partnership with other countries. These can be seen in Prime Ministers visit to Vietnam and decided to enhance the partnership to comprehensive strategic partnership, issue of Chabahar, reaching out to central Asia etc.
- India will host the BRICS summit in Goa in October. BRICS have a very influential voice; they represent 40% of the world population and similar GDP and Trade levels. The power is shifting from west to east. In that sense how to have a better voice for these emerging economies in the world governance is going to be an important area of discussion.