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As India takes G20 presidency, key takeaways from the summit in Bali

GS Paper 2

Syllabus: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests

 

Source: IE

 Direction: The article covers a brief about the G20 grouping, key takeaways from the Bali summit and the significance of the G20 presidency for India.

  

Context: The first post-pandemic meeting of the grouping – the G20 summit in Bali, Indonesia, recently took place in the shadow of the Russia-Ukraine crisis and a missile attack on Poland.

 

Key five takeaways from the Bali summit:

  • The joint statement includes India’s message to Russia: “Today’s era must not be of war” this is a message, which is the result of India’s constructive, cooperative and consensus-building approach, which helped bridge the gap between Russia and the Western countries.
  • India got the presidency of the G20: This is the first time the country will be holding (in New Delhi from September 9 and 10, 2023) an international summit of this scale.
    • The Indian Prime Minister stated that India’s presidency will be inclusive, ambitious, decisive and action-oriented, as represented by India’s G20 chairmanship theme “One Earth, One Family, One Future.”
  • Meeting of the world’s two most powerful economies – US and China: At a time when the ties between their countries have been strained, their meeting is seen as an incremental step towards rebuilding the fractured relationship.
  • The divide between Russia and the West is evident: Especially after news of the “Russian-built” missile landing in Poland – a NATO member country.
  • Meeting of Indian PM and Chinese President: This was their first public meeting since the India-China border standoff began in 2020.

 

Significance of G20 presidency for India:

  • An opportunity to assume leadership of the Global South.
  • Building a global consensus on reforming multilateral organisations such as the UN was the first step toward a new world order for the post-Covid era.
  • The growing relevance of the G20 in a world facing challenges like climate change, the Covid-19 pandemic and the war in Ukraine.

 

About the G20 or Group of Twenty:

  • It is an intergovernmental forum made up of 19 countries as well as the European Union (EU) that aims to address significant global economic challenges such as international financial stability, climate change mitigation and sustainable development.
  • The G20, which is made up of the majority of the world’s top economies (both developed and developing), was created in 1999 and has met at least once a year since 2008.
  • Because the group has no permanent staff/secretariat, each year in December, a G20 country from a rotating region assumes the Presidency, which is in charge of organising the following summit.

 

Insta Links:

Great G20 power, great responsibility

 

Mains Links:

Q. The long-sustained image of India as a leader of the oppressed and marginalised nations has disappeared on account of its newfound role in the emerging global order.’ Elaborate (UPSC 2019)

 

Prelims Links:

Consider the following statements about G20 (or Group of Twenty):

  1. The G20 was created on France’s initiative during the crisis following the Asian Financial Crisis in 1997-1998.
  2. It has no permanent staff of its own.
  3. A G20 country from a rotating region takes on the Presidency.

Which of the given above statements is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3

(d) 2 and 3

 

Ans: (d)

 

Explanation:

  • The G20 (or Group of Twenty) is an international forum for the governments and central bank governors from 19 countries and the European Union (EU).
  • The genesis of G20:
    • After the Asian Financial Crisis in 1997-1998, it was acknowledged that the participation of major emerging market countries was needed in 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.

Refer: https://g20.org/