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About:
The G20, or Group of 20, is main international forum for economic, financial and political cooperation which addresses major global challenges and seeks to generate public policies that resolve them. Formed in 1999, as an inclusive forum of finance ministers and central bank presidents in response to currency crisis of late 1990s that especially hit Southeast Asia and Russia. Its role was earlier overseen by G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States). Its members are European Union (EU) and 19 countries: Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, United States, France, India, Indonesia, Italy, Japan, Mexico, United Kingdom, Russia, South Africa and Turkey. Global financial crisisof 2008 and its aftereffects necessitated wider and highest level deliberations by bringing heads of State and Governments on the G20 platform. G20 members draw and commit themselves to an annual agenda every year.
Relevance of G20:
Broad focus:G20 focuses on three broad areas:
1. Supporting domestic resources (tax, remittances and anti-corruption) 2. Strengthening key areas for growth and development (infrastructure, energy and food security and nutrition) 3. Promoting inclusion and opportunity (trade and global value chains, financial inclusion, human resource development and employment)
Challenges:
1. Lack of continuity in policies:The G20 agenda is an annual plan which changes every year with the change of presidency, hence its policies lack continuity and permanence Deliberative body with non-binding agenda/Self-appointed group:The G20 is essentially a self-appointed deliberative body for current global pressing problems, with non-binding agenda.
2. Lack of follow-up mechanism: G20 lays a roadmap and leaves its implementation on individual governments without any follow-up, thus relegating G20 issues to the background
3. Limited extra-G20 outreach: G20 majorly lacks outreach mechanism to connect with countries outside the group, thus functioning as a closed group.
4. Lack of formal voting in summits:G20 forum lacks any formal voting mechanism for decision-making which makes it vulnerable to informal influence and lobbying Ineffective control:Climate change is an important agenda of G20 but the group has not been able to tame the biggest emitting country US to fall in linewith other members
5. Opposing interests:Germany intends to make “open markets, and free, fair, sustainable, and inclusive trade” a key focus of G20 in contrast to global trade barriers setup by other members like US’bilateralism, protectionism, ‘My Country First’ approach and Britain’s exit from EU.
6. Failed mandate:its core mandate of maintaining global financial stability and managing structural reforms has been unmet as highlighted by cyber instability of financial structures, persistent inflation and higher market volatility (Global Financial Stability Report 2018).
Recent outcomes of G20:
Argentina Summit 2018: G20 leaders agreed on:
India and G20:
G-20 has become one of the most significant international body and platform for highlighting national and international concerns by member states. Absence of Pakistan as a member in G20 allows India to garner global support against Pakistan’s terror links and activities. G20 platform can be used by India for resolution of following issues:
Terrorism, Climate change and liberalization of trade in services:
1. India pushes for early resolution of a Comprehensive ConventionAgainst International Terrorism (CCIT)in G20 forums to curb all forms of terrorism along with global terror financing networks.
2.It has expressed its commitment for continued global convergence and coordination for climate change mitigation and has upheld Paris Climate Accord.
3. It plays a major role in leading climate change talks on behalf of developing countries and LDCs.
4. India demands G20 to agree on opening their markets for unhindered trade in services
5. Reforms of global finance institutions and multilateralism: India demands increased share of EMEs in IMF and UNSC on the basis of their increased role in global growth and productivity and calls for free, open and interconnected multilateral trading system
6. Trade tensions and effect on developing economies: India highlighted escalating trade tensions between US and China and its resultant and collateral damages caused to developing and least developed countries.
7. 9 Point Agenda:India submitted a nine-point agenda for dealing with fugitive economic offenders at G-20 summit 2018. It includes: Cooperation in the legal processeslike effective freezing of the proceeds of crime Establishing a mechanism that denies entry and safe havens to all fugitive economic offenders Develop a set of commonly agreed andstandardized procedures related to identification, extradition and judicial proceedings for dealing with fugitive economic offenders Common platform for sharing experiences and best practices including successful cases of extradition, gaps in existing systems of extradition and legal assistance
8. Financial Action Task Force (FATF) should focus on establishing international cooperationfor timely and comprehensive exchange of information between the competent authorities and financial intelligence units.
Way ahead:
1. Robust implementation mechanism: G20 leaders need to evolve a robust mechanism for implementation of outcomes of summits by mandatory reporting or submission of national actions
2. G20 and SDGs: G20 is well placed to contribute towards successful achievement of SDG goals by responding to the needs of LIDCs through more systematic dialogue and alignment of G20 agenda with the SDG goals
3. Expanded scope of deliberations: International trade policy issues must become a part of G20’s core agenda;need for broader deliberations on labor-displacing technologies like AI and its solutions like open trading system, lifting curbs on migration;securing rights of refugees, especially environmental refugees.
4. Governance and decision-making:In order to bring consensus in its functioning G20 must evolve a formal voting mechanism, to make it more democratic and consensual in decision-making.
By: Priyank Kishore ProfileResourcesReport error
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