G-20 and its Importance for India
G20 means the Group of the twenty most powerful countries in the world. These countries represent 60% of the world's population. They also account for 75% of world trade. 85% of the world's GDP comes from these countries.
The G20 has a significant impact on the development and improvement of global governance and architecture. The G20's goals are to:
a) Coordinate policies among its members to achieve global economic stability and sustainable growth
b) Promote financial rules to mitigate risks and avert future financial crises
c) Establish a new global financial architecture
The brilliant colors of the national flag of India—saffron, white, green, and blue—serve as the foundation for the G20 Logo. It contrasts Earth with the lotus, India's national flower that symbolizes progress despite obstacles. "Bharat" in Devanagari script appears beneath the G20 logo. The theme of India’s G20 Presidency - “Vasudhaiva Kutumbakam” or “One Earth · One Family · One Future”.
The theme also spotlights LiFE (Lifestyle for Environment), with its associated, environmentally sustainable, and responsible choices, both at the level of individual lifestyles as well as national development, leading to globally transformative actions resulting in a cleaner, greener and bluer future.
The 20 countries, that are a part of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, the European Union United Kingdom, United States of America, and Turkey.
India will be the president of G20 from December 2022 to November 2023. The presidency is rotated between the countries mentioned above every year. India is planning over 200 meetings with the participation of over 32 sectors during its presidency tenure. The past president was Indonesia, the current President is India, and the next president is Brazil. These 3 countries are responsible to push the agenda of G20. India has invited UAE as its guest country at the G-20 summit in New Delhi. Many other nations like Bangladesh, Oman, Singapore, Mauritius, Spain, etc have also been invited by India.
Before the establishment of G20 in 1999, there was G7, which was a group of 7 countries that had only western developed nations. But soon, they realized that the need of international cooperation was necessary and founded G20 after the Asian Financial Crisis to discuss global economic and financial issues. G20 was seriously considered after the 2008 crisis.
G20 has two major tasks or tracks:
i) Financial track; and
ii) Sherpa track
The financial track includes global economic growth, tax information exchange, financial regulatory reforms, financial inclusion, and remittances across the world, fossil fuel subsidies, green finance, and anti-terrorism financing.
The sherpa track includes employment, climate change, agriculture and food security, anti-corruption measures, UN sustainable development goals, and improvement of healthcare.
The Finance Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the Sherpa Track.
Kautilya, IBS Mumbai.