G20 or Group of 20 is a strategic multilateral and intergovernmental platform comprising 19 nations, connecting the world’s major developed and emerging economies. G20 was created in 1999 in response to the financial crisis in developing countries. The main objectives of the G20 are to achieve global economic stability and sustainable growth.
To promote financial regulations which reduce the risk of major financial crises and to create a new international financial architecture. G20 does not have a permanent secretariat – it consists of Troika. It refers to the top grouping within G20 that consists of the current, previous, and incoming presidencies.
For 2023, G20 Troika consists of Indonesia, India, and Brazil.
India formally assumed the G20 presidency on 1st December 2022 from Indonesia and will continue till November 2023. India focuses on the true spirit of ‘Vasudhaiva Kutumbakam’ or the ‘World is one family’. The G20 has a crucial role in setting the path for the future of global economic growth and prosperity as it consists of 80% of the World GDP, 75% of world trade, and 60% of the planet’s population. It signifies the interconnectedness of the global economy which cannot be structured according to the needs of only one significant country.
Democratic and Equitable goals for Global Future
The G20 process of decision-making and implementation in a country is handled by two tracks. The Finance track which consists of the Finance Ministry and the Central Bank governors and the Sherpas will lead the Sherpa Track. To include the public participation dimension and citizen engagement in governance there are various Engagement groups which include civil society, think tanks, women, parliamentarians, youth, and business.
Under India’s Presidency approach, it will host over 200 meetings in more than 50 cities across the country for the G20 delegates and guests to truly get a glimpse of the unique Indian culture and traditions that uphold the unity and integrity of the country.
The finance track will ensure financing for sustainable growth, financing for healthcare infrastructure, and financing for public policy changes which will work under eight working groups. The Sherpa track, which consists of 13 groups and 2 initiatives, will ensure socio-economic growth by scaling up digital technology, anti-corruption, the global supply of food, fertilizers and climate change.
One of the main themes of India’s G20 presidency would be LIFE (Lifestyle for Environment) to make more environmentally responsible choices. India aims for structural transformation. For global empowerment, it is necessary to ensure inclusive growth and development which can be achieved by empowering women with equal rights which forms the core of G20 deliberations.
The rising issues for the G20 would be the Russia-Ukraine conflict, the challenge of rising food prices, the threat of stagflation, and the slowdown of major economies post-COVID-19.
The world is so interconnected and integrated now that countries have to come together to ensure equitable global growth. The G20 must provide a vision to bind all the developed and developing countries – emerging economies like India, Indonesia, Brazil, and Mexico which are new actors in global governance to support coordinated actions and promote global public goods.
This is a way forward for global financial stability.