The G20 Summit, set to take place in New Delhi on September 9-10, is poised to be a momentous event, bringing together leaders from the world’s most powerful nations under India’s year-long presidency of the G20.
New Delhi, September 8, 2023 – The G20 Heads of State and Government Summit, slated for September 9-10 in New Delhi, marks the culmination of India’s year-long presidency of this influential global forum. This report provides a comprehensive understanding of the G20, from its inception to the specifics of the upcoming summit.
G20 Introduction
The G20, or the Group of Twenty, consists of 19 countries and the European Union. These members represent a staggering 85% of the global GDP, over 75% of global trade, and approximately two-thirds of the world’s population. Functioning as a platform for international economic cooperation, the G20 plays a pivotal role in shaping global economic policies.
What is the G20 and Its Role?
At its core, the G20 serves as a forum for member countries to engage in policy coordination aimed at achieving global economic stability and sustainable growth. Its reach extends across various fronts, from fiscal and monetary policy issues to financial regulations, with the ultimate goal of reducing risks and preventing future financial crises. It’s also instrumental in shaping a new international financial architecture that adapts to the evolving global economic landscape.
The significance of the G20 lies in the sheer scale of its representation. Comprising 19 countries – Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, and the United States – along with the European Union, the G20 wields substantial influence over the direction of global economic policies.
Origins of the G20
To understand the G20’s roots, we must revisit the late 1990s. At that time, the world was undergoing significant transformations. The Soviet Union had collapsed in 1991, effectively ending the Cold War. Simultaneously, robust economies were emerging in the Global South, particularly in countries such as Brazil, China, and India. It was in this context that a pressing need for reform in global governance and international institutions emerged. Existing forums, like the G7, and international organizations, such as the World Bank, were struggling to cope with crises in this emergent global order.
In 1997, the Asian financial crisis sent shockwaves through some of the fastest-growing economies in East Asia and quickly spread to Latin America. This crisis paved the way for the establishment of the G22, the earliest iteration of the G20, in 1998. Initially conceived as a one-time crisis-response meeting, early 1999 saw the convening of two more meetings involving 33 members (G33) to discuss reforms in the global economy and the international financial system.
It wasn’t until late 1999 that the G20, with its present composition, was officially founded. It emerged as an informal forum for Finance Ministers and Central Bank Governors of its members to meet annually.
The Emergence of the G20 Leaders’ Summit
From 1999 to 2008, the G20 largely operated outside the public eye. While annual meetings did take place, they didn’t attract the attention they do today. However, the global financial crisis of 2008 would catapult the G20 to its current status. As the world grappled with the most significant economic crisis since the Great Depression of 1929-1939, France, which held the EU presidency at the time, advocated for an emergency summit meeting to address the crisis.
But whom to invite? The G8, consisting of Canada, France, Germany, Italy, Japan, Russia, the UK, and the US, was not sufficiently influential on its own to stabilize a crisis of this magnitude. Typically, months of diplomatic deliberation would precede the decision on which countries to invite, but with the crisis unfolding rapidly, there was no time for such deliberation. The G20 was the obvious answer.
Thus, the first G20 Leaders’ Summit, known as the ‘Summit on Financial Markets and the World Economy,’ was convened in Washington, D.C., in November 2008. In addition to the leaders of its 20 members, the heads of the International Monetary Fund (IMF), the World Bank, and the United Nations were invited. Spain and the Netherlands also participated. Since then, annual summits have been the norm.
The G20’s Operational Mechanism
The G20 is an informal grouping, which means it lacks a permanent secretariat or staff. The presidency rotates annually among the members. The “troika,” composed of the previous, current, and incoming presidencies, supports the current president.
The informality of the G20 is two-fold. First, while its decisions hold immense importance, they do not translate into automatic implementation. Instead, the G20 serves as a platform for leaders to discuss various issues and make pronouncements that signal their intentions. These pronouncements are subsequently implemented by the relevant nations or international organizations. For instance, if the G20 makes a statement on trade, it is the responsibility of an organization such as the World Trade Organization to execute the pronouncement.
Second, the G20’s decisions, while vital, do not carry the weight of binding commitments. They are expressions of intent and direction, which are subsequently taken up for implementation by member nations and international institutions. This flexibility allows for dynamic responses to emerging global challenges.
Determining the G20 Presidency
The G20 presidency follows a rotating pattern, with its members categorized into five groups. Each group takes its turn at holding the presidency, and countries within each group negotiate among themselves to determine the president for their group’s turn.
Responsibilities of the G20 Presidency
The G20 presidency is not merely symbolic; it holds significant responsibilities. Chief among them is setting the G20 agenda for the year. This involves consultations with other member countries and adapting to global developments. Additionally, the president oversees various meetings and, most notably, the G20 Leaders’ Summit. The presidency is also responsible for providing the logistical and resource support necessary for the forum’s successful operation throughout the year.
The Working Structure of the G20
The G20 functions through three primary tracks: the Finance Track, Sherpa Track, and Engagement Groups. Each of these tracks plays a distinct role in the G20’s operations.
The Finance Track is headed by finance ministers and central bank governors. This group typically convenes four times a year and focuses on a range of fiscal and monetary policy issues. These encompass the global economy, infrastructure, financial regulation, financial inclusion, international financial architecture, and international taxation, among others. Presently, there are eight working groups within this track.
The Sherpa Track, established after the inception of the G20 Leaders’ Summit in 2008, is led by Sherpas, who are the appointed representatives of the member countries’ presidents or prime ministers. This track primarily deals with socio-economic issues, including agriculture, anti-corruption, climate, digital economy, education, employment, energy, environment, health, tourism, trade, and investment. Currently, there are 13 working groups under this track.
The Engagement Groups represent an unofficial track within the G20. These groups comprise non-government participants from each member country who address a wide array of issues. They draft recommendations for G20 leaders, which contribute to the policy-making process. Presently, there are 11 Engagement Groups, making them an essential part of the G20’s inclusive approach to governance.
Agenda of the 2023 G20 Summit
While the specific agenda for each G20 summit is not predefined, several recurring themes reflect the priorities of the member countries. Broadly, these encompass international conflicts, commitments related to climate change, areas for future cooperation, and more.
For the 2023 G20 Summit hosted by India, there is a notable emphasis on climate change and sustainability, consistent with India’s portrayal as a voice for the Global South. However, India faces the challenge of balancing its interests concerning the West and Russia, especially regarding a common statement on the Ukraine War. The absence of Russian President Vladimir Putin and Chinese President Xi Jinping at the summit further complicates the dynamics, though both countries will be represented by senior officials.
Invited Participants
In addition to member countries, the G20 presidency extends invitations to guest countries and international organizations (IOs) to participate in the G20 meetings and the Summit. These invitations provide the G20 president with a valuable tool to set the agenda and guide the forum’s work.
For the 2023 G20 Summit, India has invited several guest countries, including Bangladesh, Egypt, Mauritius, the Netherlands, Nigeria, Oman, Singapore, Spain, and the UAE. Additionally, specific IOs have been invited to participate, such as the International Solar Alliance (ISA), the Coalition of Disaster Resilient Infrastructure (CDRI), and the Asian Development Bank (ADB). These invitations reflect the complex interplay of global interests and the G20’s potential to address a diverse range of challenges.
Changing Invitations
The ability to extend invitations to guest countries, IOs, and regional organizations (ROs) is a key prerogative that comes with the G20 presidency. These invitations serve as a means to set the agenda and guide the G20’s work in line with the president’s priorities.
For instance, India’s invitations to African countries and ROs in 2023 form part of a broader strategy to counter China’s growing presence in Africa. India has even advocated for the African Union (AU) to become a permanent member of the G20, highlighting the dynamic nature of G20 invitations and their geopolitical implications.
Theme and Logo of the 2023 G20
The theme for the 2023 G20 Summit, “Vasudhaiva Kutumbakam – One Earth, One Family, One Future,” encapsulates India’s commitment to environmental sustainability and responsible choices. Derived from the ancient Sanskrit text of the Maha Upanishad, this theme underscores the value of all life forms – human, animal, plant, and microorganisms – and their interconnectedness on planet Earth and in the wider universe. It spotlights LiFE (Lifestyle for Environment) with its associated environmentally sustainable and responsible choices, both at the individual and national levels, leading to globally transformative actions for a cleaner, greener, and bluer future.
The G20 logo, introduced for the 2023 Summit, is a visual representation of hope amid challenges. Drawing inspiration from India’s national flag and the lotus flower, it juxtaposes planet Earth with the lotus, India’s national flower. This symbolism reflects growth amid adversity and India’s pro-planet approach to life, in perfect harmony with nature. The seven petals of the lotus represent the seven continents, reinforcing the idea of “Vasudhaiva Kutumbakam” – the whole earth is a family.
As the world eagerly anticipates the G20 Summit in Delhi, this comprehensive overview provides insight into the significance of this global gathering and India’s role in shaping the future of international economic cooperation.
