G20 Summit

The G20 or Group of 20 is an intergovernmental forum founded in 1999, comprising 19 sovereign countries and two organisations- the European Union (EU), and the African Union (AU). G20 is a significant grouping as its members account for 80% of world GDP, 75% of international trade and two-thirds of the global population. These are the largest economies in the world and meet annually to discuss economic, political and social initiatives.

During the Asian economic crisis in 1990s where emerging markets were in debt crises, there was a need felt to enhance cooperation and policy coordination. G20 first started out as a forum for Central Bank Governors and Finance Ministers to meet. It was focused on macroeconomic issues but has since expanded to include issues such as trade, sustainable development, health, agriculture, energy, the environment, climate change and the fight against corruption. Since 2008 an Annual Summit of Heads of States is conducted. The G20 Presidency rotates annually according to a system that ensures a regional balance over time.

G20 is an international forum 19 major economies and two multilateral organisations African Union and European Union. In its annual summit, representatives of other important international organisations also attend including the Chairman of the International Monetary Fund, the President of the World Bank, the International Monetary and Financial Committee and the Chairman of the Development Assistance Committee. Though the G20's primary focus is global economic governance, the themes of its summits vary from year to year.

The members of G20 include Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia, Australia, Saudi Arabia, India, South Africa, Turkey, Argentina, Brazil, Mexico, China and Indonesia. Two organisations - the Euopean Union & African Union are also a part of the group.

• Annual Summit: Hosted by one of the member countries where discussions are undertaken and end of summit Declarations are recorded. Annual Summits started in 2008 after the Lehman Brothers bank collapse.
• G20 does not have a Secretariat, it is run by the bureaucracy provided by the Troika. Troika is a group of three countries including the current, past and next Presidents of the G20.
• Tracks: Two tracks of G20 include the Sherpa track (for discussing summit agenda of the year led by emissiaries of member countries) and the Finance track (for strategic macroeconomic issues led by Finance Ministers of member countries)
• Sherpas are the leaders and ground workers who negotiate the documents and commitments of the countries. There is a Sherpa from each member country.
• Working Groups: for each theme there are groups which work throughout the year coordinating between various countries and expert bodies. These themes change year to year depending on priorities at the time.

• Common Framework for Debt Treatment: It is an agreement between G20 and Paris Club to reschedule the debt repayments from 73 low-income countries. This is a Debt Service Suspension Initiative (DSSI) where countries with sustainable debt but liquidity issues can provide a deferral of a portion of debt service payments for a number of years that can ease financing pressures.
• Global Infrastructure Facility: Partnership between G20 and World Bank to boost private investment in infrastructure. The aim is to meet the needs of emerging markets for low-carbon and climate-resillient quality infrastructure which will drive economy, societal growth and climate action.

Many countries over the years have vied for a spot in the G20. Singapore created the Global Governance Group (3G) to voice opinions of 30 non-G20 countries which should be represented at G20.

New Delhi Declaration was signed at the Summit which forged a consensus between the members on a range of political, economic, and environmental issues. Following were the key takeaways:

1. Growth, economy and jobs: It says G20 members will commit themselves to implementing well calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities and maintain macroeconomic and financial stability.
2. Financial Inclusion and Digital Public Infrastructure (DPI): The G20 Framework for Systems of Digital Public Infrastructure was adopted and India declared its goal to build a a Global Digital Public Infrastructure Repository (GDPIR). These technological interventions will boost financial inclusion.
3. Sustainable Development Goals (SDGs): At the mid way point for the SDG 2030 objective, there is a lot to be done. G20 leaders have reaffirmed their commitment to mobilising affordable, adequate and accessible financing from all sources to support developing countries and scale up sustainable finance. The G20 Declaration on Health seeks to strengthen primary healthcare, tackle epidemics and incorporate one health approach.
4. Climate: Green development pact adopted with G20 members saying they will urgently accelerate actions to address environmental crises and challenges, including climate change. A Global Biofuel Alliance will be setup for promoting use of sustainable biofuels. Members have also committed to achieving net-zero emissions/carbon neutrality by around 2050.
5. Reforming International Financial Institutions: To evolve and strengthen the Multilateral Development Banks (MDBs) to address the developmental needs of low- and middle-income countries.
6. Women-led development: G20 leaders agreed to create a new working group on the empowerment of women.
7. Creating a more inclusive world: The African Union was included as a permanent member of the G20. This will further promote the developmental agenda of the Global South

This declaration was significant in demonstrating India’s growing significance in brining consensus among the Global South and its soft power in global diplomacy. By reaching a consensus on difficult issues, like Ukraine war and climate change, India has shown the way as a global leader for peace and harmony worldwide.

The G20 members via the New Delhi Declaration are determined to steer the world out of its current challenges and build a safer, stronger, more resilient, inclusive, and healthier future for people and the planet. With this India has become the ‘voice of the global south’. India’s G20 presidency has not only helped the heavily divided bloc reach a consensus, but also laid the ground for deeper future cooperation. With the baton now passed to Brasil for G20 2024, there is need to implement the commitments in the New Delhi Declaration to fruition for continued progress.