Kerryn Pahuja
Introduction:
What Is G20 Summit?
The G20 or Group of 20 is an intergovernmental forum comprising 19 sovereign countries. The participants are leaders from 19 countries and the European Union (EU). The 19 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Republic of South Africa, Russia, Saudi Arabia, Turkey, United Kingdom, United States of America.
The G20 Summit, formally named as the Summit on Financial Markets and the World Economy, serves as the primary platform for international economic collaboration. This designation was established during the Pittsburgh Summit in September 2009 when global leaders recognized it as such. The G20 represents more than 80% of the world’s total economic output, commonly referred to as global GDP. Its primary objective has been to consistently work towards fostering robust growth in the global economy. Along with the progress of globalization and the increasing interconnectedness of various issues, the recent G20 summits have expanded their focus beyond matters of macroeconomics and trade. They have extended their attention to a broader array of global challenges with significant repercussions for the global economy such as development, climate change and energy, public health, counter-terrorism efforts, as well as issues related to migration and refugees. The G20 has the aim of resolving these global issues through cooperative efforts and negotiations.
History:
After the Asian Financial Crisis in 1997-1998, it became clear that major emerging market countries should be included in discussions about the global financial system. In 1999, the G7 Finance Ministers agreed to create the G20 Finance Ministers and Central Bank Governors meeting.
These meetings were focused on important economic and monetary issues among major countries in the global financial system. Their goal was to encourage cooperation to achieve stable and sustainable global economic growth for the benefit of all countries. The countries participating in these meetings were the same as the current G20 members.
In November 2008, the first G20 Summit took place in Washington, D.C. This was in response to the global financial crisis that happened after the Lehman Brothers collapsed. The G20 Meeting of Finance Ministers and Central Bank Governors was upgraded to include leaders from major developed and emerging market countries. In September 2009, during the third summit held in Pittsburgh, the leaders officially designated the G20 as the “main forum for international economic cooperation.” After that, summit meetings were held twice a year until 2010 and annually from 2011 onwards.
Chair rotation:
There is a rotation system to decide which country gets to lead the G20 meeting of world leaders each year. All member states, except for the European Union and African Union, are put into five groups. Most groups have four countries, but one has three. Countries from the same region are usually in the same group, except for Group 1 and Group 2.
Any country within a group can become the G20 President when it’s their group’s turn. So, the countries in that group have to talk and decide who will be the next G20 President. Each year, a different member country takes on this role, starting from December 1st and lasting until November 30th of the following year. This system started in 2010 when South Korea, which is in Group 5, was the Chair. Here’s a list of which countries are in each group:
| Group 1 | Group 2 | Group 3 (Latin America) | Group 4 (Western Europe) | Group 5 (East Asia) |
| Australia (2014)
Canada (2010-1) Saudi Arabia (2020) United States (2008, 2009-2) |
India (2023)
Russia (2013) South Africa (2025) Turkey (2015) |
Argentina (2018)
Brazil (2024) Mexico (2012) |
France (2011)
Germany (2017) Italy (2021) United Kingdom (2009-1) |
China (2016)
Indonesia (2022) Japan (2019) South Korea (2010-2) |
Organisation:
The G20 doesn’t have a permanent headquarters or a full-time staff. Instead, it’s run by one member country at a time, which changes every year. That country sets up a temporary office to help organize the group’s work and meetings.
In 2022, the G20 meeting took place in Bali, Indonesia. Currently, India is leading the group and hosted the 2023 meeting. Brazil will be in charge for the 2024 meeting.
In the past, the President of France, Nicolas Sarkozy, suggested creating a permanent office for the G20, similar to the United Nations. They considered places like Seoul or Paris for its headquarters. Some countries, like Brazil and China, liked this idea, while others, like Italy and Japan, did not. South Korea had a different proposal, suggesting a “cyber office” instead.
Some people have also suggested that the G20 has been using the OECD (Organization for Economic Co-operation and Development) as a kind of secretariat.
Members:
As of 2023, the G20 has 21 member countries. These members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, the European Union, and the African Union. Additionally, they invite guests to their meetings, including Spain, the United Nations, the World Bank, and ASEAN, among others.
During the leaders’ summits, you’ll find the leaders of all membercountries, the African Union, and the European Union attending. At the ministerial-level meetings, the Finance Ministers and Central Bank Governors from these same countries, the African Union, and the European Union participate.
Furthermore, every year, the G20 invites Spain, the Chair of ASEAN, a representative from the New Partnership for Africa’s Development (NEPAD), and sometimes one or more countries chosen by the presidency, typically from their own region.
At the 18th G20 meeting in 2023 in India, the African Union became a member to the forum. This announcement was made by the current G20 Summit Chair, Indian Prime Minister Narendra Modi.
Impact of Asian Countries:
In 2011, the Asian Development Bank (ADB) released a report which predicted that large Asian countries like China and India would become more influential in how the world’s economy is managed. The report statedthat as these emerging market economies became stronger, there would be a new way of running things globally, with the G20 as the main group in charge.
The ADB also pointed out that Asian countries played a big role in helping the world recover from the economic problems that happened in the late 2000s. They said that Asia would become even more important on the world stage. They thought that Asia would help shape the G20’s plan for balanced and sustainable growth by doing things like boosting trade between countries in the region and encouraging people to spend money within their own countries.
Agenda:
Financial Focus: When the G20 group first started, it was mainly concerned with making sure its member nations could pay their debts and keep the global financial system stable. The idea was to include big developing countries as equal partners in this effort. In a summit in November 2008, the group’s leaders pledged to provide a lot of money to international financial organizations like the World Bank and IMF to help fix the global financial system. Since then, the main topics discussed at G20 summits have centered on global economic growth, international trade, and rules for financial markets.
Inclusive Growth: The G20 countries are responsible for almost 75% of the world’s carbon emissions. After the United Nations adopted the Sustainable Development Goals and the Paris Climate Agreement in 2015, the G20 started including more important global issues on its agenda. These issues include migration, digital technology, employment, healthcare, empowering women economically, and providing help for development in poorer countries.Despite promises to reduce subsidies for fossil fuel companies, G20 members have actually given these companies over $3.3 trillion between 2015 and 2021. Some countries, like Australia, the US, Indonesia, France, China, Brazil, and Mexico, have even increased their subsidies to these companies. For example, China produces more than half of the world’s electricity from coal.
Interconnected Themes: Wolfgang Schäuble, the German Federal Minister of Finance, has emphasized that the issues faced by G20 countries are all connected, whether they’re financial or developmental. He believes that policies need to address multiple issues at once because globalization has brought many people out of poverty but has also led to frustrations in some places. Issues like development, national security, and migration are all linked together.
G20 engagement groups:
G20 Engagement Groups are groups of different organizations in the host country. These organizations come together to discuss important issues and make suggestions for the G20 leaders. These suggestions are not rules but are like advice for the leaders to think about.
In 2022, when Indonesia hosted the G20, there were 10 of these groups. They helped independent organizations give ideas and recommendations to the G20 leaders.
Now, in 2023, under the G20 India Presidency, there are some new Engagement Groups like Startup20 and a few others. These groups will also share their thoughts and recommendations with the G20 leaders.
Impact and responsibility:
The G20 is a group of important countries, and even though it doesn’t have the power to make strict rules, it still has a big say in global policies. However, some people question whether the G20 is legitimate, and they criticize how it’s organized and whether its decisions are effective.
Critics also raise concerns about how open and responsible the groupis. They point out that there are no official rules, and many of the most important meetings happen behind closed doors. In 2001, an economist named Frances Stewart suggested creating an “Economic Security Council” within the United Nations as an alternative to the G20. This council would have members elected by the General Assembly based on how important they are to the world economy and how much they’re willing to help global economic development.
The cost and level of security needed for G20 meetings can be a problem in the host country, and these summits often attract protesters from various backgrounds. These protesters can include people who want more transparency, those against certain banking practices, and those who are against capitalism. For example, in 2010, the G20 summit in Toronto led to massive protests and even riots, resulting in the largest mass arrest in Canada’s history.
Calls for removal of Russia:
In March 2022, after Russia invaded Ukraine, U.S. President Joe Biden said that Russia should no longer be part of the G20. He also suggested that Ukraine, even though it’s not a member, should be allowed to join the 2022 summit. Canadian Prime Minister Justin Trudeau also said that the group should think about whether Russia should still be in it.
Russia, on the other hand, said that this wouldn’t be a big problem because most G20 countries were already taking actions against Russia because of the war. China thought that kicking Russia out of the group wouldn’t be a good idea.
In November 2022, Indonesia and Russia announced that Vladimir Putin wouldn’t attend the G20 summit in person but might join through video. During the 2022 summit,Volodymyr Zelenskyy, the President of Ukraine, appeared in a video message and kept calling the group the ‘G19.’ He expressed that he thinks Russia should be taken out of the group.
References:
- https://en.wikipedia.org/
- https://www.mofa.go.jp/
- https://en.wikipedia.org/
- https://www.moneycontrol.com/