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G20 Summit:

GS Paper 2:

Topics Covered: Important international institutions and groupings.

 

Context:

2021 G20 Summit was held in Rome, Italy.

 

Objectives of the summit:

The Group of 20 countries, which represent more than three-quarters of the world’s greenhouse gas emissions, had been looking for common ground and solid commitments on how to reduce emissions while helping poor countries deal with the impact of rising temperatures.

 

Outcomes of the meet:

  1. Leaders committed to the key Paris Agreement goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels.
  2. They also pledged to reach a target of net zero carbon emissions “by or around mid-century”, instead of setting a clear 2050 date, as campaigners and summit host Italy were hoping for.
  3. They agreed to stop funding new dirty coal plants abroad by the end of 2021.
  4. They reaffirmed the so far unmet commitment to mobilise $100 billion for developing countries for climate adaptation costs.
  5. They approved on an agreement that will subject multinationals to a minimum 15 percent tax, as part of an effort to build “a more stable and fairer international tax system”.
  6. They decided to pursue the recognition of more vaccines by the World Health Organization under a “One Health approach” for the world, and providing finances and technology for vaccine production at mRNA Hubs in South Africa, Brazil and Argentina.

 

What is the G20?

The G20 is an annual meeting of leaders from the countries with the largest and fastest-growing economies.

  • Its members account for 85% of the world’s GDP, and two-thirds of its population.
  • The G20 Summit is formally known as the “Summit on Financial Markets and the World Economy”.

 

Establishment:

After the Asian Financial Crisis in 1997-1998, it was acknowledged that the participation of major emerging market countries is needed on discussions on the international financial system, and G7 finance ministers agreed to establish the G20 Finance Ministers and Central Bank Governors meeting in 1999.

 

Presidency:

  • The group has no permanent staff of its own, so every year in December, a G20 country from a rotating region takes on the presidency.
  • That country is then responsible for organising the next summit, as well as smaller meetings for the coming year.
  • They can also choose to invite non-member countries along as guests.
  • The first G20 meeting took place in Berlin in 1999, after a financial crisis in East Asia affected many countries around the world.

 

Full membership of the G20:

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

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Its relevance in changing times:

  • As globalization progresses and various issues become more intricately intertwined, the recent G20 summits have focused not only on macroeconomy and trade, but also on a wide range of global issues which have an immense impact on the global economy, such as development, climate change and energy, health, counter-terrorism, as well as migration and refugees.
  • The G20 has sought to realize an inclusive and sustainable world through its contributions towards resolving these global issues.

 

Insta Curious:

Do you know about Sherpas? Reference: read this.

 

InstaLinks:

Prelims Link:

  1. G20 vs G20+ vs G7 vs G8.
  2. Objectives and sub- groups.
  3. Overview of Geographical locations of the member countries.

Mains Link:

Do you think the recent G20 summits have turned into talking shops rather than getting down to brass tacks? Critically analyse.

Sources: the Hindu.