Lok Sabha TV- Insight : G – 20 Summit
Lok Sabha TV- Insight : G – 20 Summit
The group of G-20 comprises 19 of the world’s largest economies and the European Union representing about 80% of the world’s GDP and 2/3rd of the world’s population. The G-20 was born in 1999 after the shock of the Asian financial crisis showed the need to improve global economic coordination to bring together major industrialized and developing nations and discuss major global issues. The Group has gained more prominence in setting the agenda for global economy after 2008 financial and economic crisis. Since its inception, the G-20 has discussed many measures to promote financial stability in the world and to achieve a sustainable economic growth and development. G-20 Summit 2018 will be hosted by Argentina.
How is G-20 different from G-7:
G-7 was established in 1976 as an informal forum of seven major industrial economies and was renamed G-8 after the entry of Russia in 1998. It seeks agreement on current economic issues. G-20 reflects wider interests of both industrial and emerging market economies.
G-20 Summit 2017:
This year, the G-20 summit is being held at Hamburg, Germany with the theme “Shaping an interconnected world”. The leaders will discuss the main topics of economic, financial, climate, trade, employment and development policy. Migration, refugee flows and counter-terrorism are other key issues of global significance that will appear on the summit agenda.
Key Issues for the Summit:
- Role of G20 in making the global economy work for all
- Open and fair rules-based multilateral trading system and resilient international monetary and financial system
- Economic benefits of climate action and the potential of the digital revolution
- Tax avoidance and evasion
- Fight against terrorism and terrorist financing
- Shared responsibility for refugees and migrants, and partnering with Africa for investment, growth and jobs
Powerplay at G-20:
- Threat posed by Pyongyang is likely to see conflicts.
- Testing Intercontinental ballistic missiles represent a new escalation of threat to the US.
- China and Japan will meet here which are regional rivals.
- Looming over this Summit will be conflict in Syria and Ukraine both of which involve Russia.
- Struggle for dominance in the Middle East is also present between Saudi Arabia and Iran.
- Turkey’s crackdown on coup plotters, civil society has poisoned relations with Germany.
- This year’s G-20’s motto contrasts with President Trump’s approach.
- Germany has allowed more than a million refugees mostly Muslims.
- China is North Korea’s largest trade partner. It has economic clout that it can use to pressurize the North Korean regime.
- North Korea claims that it test launched its first ICBM (Intercontinental Ballistic Missile).
G-20 Achievements so far:
- Immediate economic measures to combat recession.
- Regulating the international financial market.
- Combating tax evasion.
- Sending a message against climate change.
- Development, adoption and implementation of 2030 agenda for sustainable development.
- Critics argue that G-20 undermines the role of the international bodies such as UN, IMF and World Bank.
- It does not strictly reflect world’s 20 biggest economies. For example: Switzerland has bigger economy which is not a member than Argentina which is a member.
- It has faced protests by anti-capitalists.
- The leaders lack the power to enforce binding decision or rules.
India has been trying to build a consensus on terrorism and this has also been a major issue for the present G-20 summit. These global platforms should be used by India to prove that terrorism has become a global crisis. There can be better sharing of intelligence to check terror funding, money laundering and bank secrecy among member countries. Similarly, migration is also an outcome of social crisis. National and international goals have to go together.