Insights into Editorial: Among members: on G-20 Osaka summit
Recently the 11th G20 Summit was held in Osaka, Japan on 28th-29th June, 2019.
The G-20 is an international forum for the governments and central bank governors. On the name of its members its name is termed as the G-20.
G-20 was founded in 1999 with the aim to discuss policy pertaining to the promotion of international financial stability.
Group of 20 or (G-20) is the main forum for deciding the opinion on many international economic cooperation and some other critical issues like terrorism, human trafficking, global warming etc.
The G20 Summit is formally known as the “Summit on Financial Markets and the World Economy”.
Importance of G20:
It is worth to mention that G20 members represent around 85% of global GDP, over 75% of global trade, and two-thirds of the world’s population.
The G20 Presidency rotates annually according to a system that ensures a regional balance over time.
The G20 does not have a permanent secretariat. Instead, the G20 president is responsible for bringing the G20 agenda in consultation with other members. G20 is an informal political forum.
A Sherpa is a personal representative of the leader of a member country at an international Summit meeting such as the G8, G20 or the Nuclear Security Summit and are responsible for thrashing out the details before the meeting of the leaders.
Crucial Happenings in G20:
- On issues such as ocean pollution management, gender equality and concerted efforts to fight corruption, the G-20 found consensus more easily. The G20 Summit 2019 was based on discussions on subjects like trade, energy, climate change etc.
- India targeted to become a five-trillion dollar economy in the next five years.
- Further India pledged to make Social sector as its top priority and resolve to focus on infrastructure development, especially digital infrastructure.
- However, Indian PM also highlighted the deficiency of resources, underlining that “there is a shortfall of almost $1.3 trillion investment in the infrastructure.
- On the sidelines of G-20 summit, India and Japan signed exchange of Letter of Intent on Ahmedabad – Kobe Sister City Partnership.
- India also invited the G20 countries to join a global coalition on disaster resilience, saying disasters require quick and effective remedial measures as they invariably affect the poor the most.
- India and Indonesia set an ambitious USD 50 billion targets for bilateral trade over the next six years.
- India sent a tough message by refusing to attend the digital economy summit pushed by Japanese Prime Minister Shinzo Abe, as his plan for “data free flow with trust”, included in the G-20 declaration, runs counter to the Reserve Bank of India’s proposed data localisation guidelines.
- The U.S. wrote in a counter to the paragraph praising the Paris accord, while trade protectionism was not mentioned in the document.
- Indian PM (his sixth G-20 summit) held many plurilateral meetings with other world leaders like heads of Russia, USA, Japan, China etc.
- India and the US discussed various bilateral and global issues including Iran, 5G communications networks, trade and defence ahead of the G-20 Summit.
Tri-Lateral Meetings of JAI and BRICS:
Along with that India also participated in two parallel tri-laterals i.e the Russia-India-China (RIC) and Japan-U.S.-India (JAI) and an informal BRICS summit.
JAI Trilateral: Three countries discussed issues of the Indo-Pacific region, connectivity and infrastructure development. It was the second Japan-America-India (JAI) meeting.
Informal BRICS meet: India stressed the need to stop all the mediums of support to terrorism and racism. Indian PM called terrorism “the biggest threat to humanity” which kills innocent and severely affects economic development and social stability.
India is taking aggressive steps to mitigate the effects of climate change and is expanding its renewable energy generation rapidly. It is also encouraging its automobile industry to shift to electric mobility in a big way.
Russia-India-China (RIC) trilateral on the sidelines of the G20 summit in Osaka, President Xi urged the three countries, to “expand cooperation in 5G network, high technology, connectivity, energy and other areas,” . He also called for reforming the World Trade Organisation (WTO), based on consensus.
China pointed out that the rise of protectionism and unilateralism had seriously affected the stability of the global landscape, dragged down world economic growth.
It exerted a negative impact that cannot be ignored on the international order on which emerging-market countries and developing countries depend.
The 5G technology, can interlink the mobile internet with manufacturing. It is at the heart of the “fourth industrial revolution,” which will result in factories being run by robots, driverless vehicles and enabling remote surgeries.
Reducing the Trade Tensions another important concern:
The most anticipated were President Trump’s meetings with his Chinese Xi Jinping and Mr. Modi, given the escalation in trade tensions. Both ended on a cordial note, but with no breakthrough or “big deals”.
The Indian and U.S. Commerce Ministers will sit down again, to try to resolve the impasse over trade issues, and the U.S. and China have called a halt to raising tariffs until they resolve issues.
Both come as a relief to India, given the impact of those tensions on the national and global economies.
Mr. Modi raised several Indian concerns at the G-20 deliberations, including the need for cooperation on dealing with serious economic offenders and fugitives, as well as climate change funding. This found its way into the final declaration.
PM Modi discusses terrorism threat at informal BRICS meet on G20 Summit sidelines:
Speaking at the informal BRICS meeting, PM Modi said, “Terrorism is the biggest threat to humanity. Not only it takes lives of the innocents, it negatively affects economical development and communal harmony. We have to stop all mediums of support to terrorism and racism.”
He also highlighted the need to brings reforms into the World Trade Organisation (WTO) in order to ensure equal growth for all.
PM Modi also observed that global economy is being ruled by one-sided decisions.
During the Japan-America-India trilateral meeting, Modi highlighted “the importance India attaches to” the grouping.
The G-20 is an important platform to discuss pressing issues, and it must not be detracted from its original purpose of promoting sustainable growth and financial stability by grandstanding by one or two members.
Many global challenges, such as climate change and its impact, the balance between the needs for speed and national security with 5G networks being introduced, as well as technology-driven terrorism, will become even more critical for the grouping, and the government must articulate its line.
With Saudi Arabia hosting the next G-20 in 2020, followed by Italy in 2021, all eyes will soon turn to the agenda India plans to highlight when it holds the G-20 summit in 2022.
India should lead the exercise in making the G-20 more effective in dealing with some of the inequities in its system.