G20 was formed in 1999, in the aftermath of the Asian Financial Crisis of 1997-1998 and became the premier forum for international economic cooperation over time. Every year it meets to discuss global financial and socioeconomic issues.
Significance of G-20 / Relevance of G-20
- G20 as Important Bloc
- Comprises 90% of the global GDP.
- G20 accounts for 80% of world trade.
- G20 represents more than two-thirds of the world’s population.
- Maintain Global Order
- Global Politics: G20 influences the policies of countries around the world to maintain global order.
- Address current issues: G20 helps in strategizing current issues. Examples include the G20 Global Smart Cities Alliance on Technology Governance, and the Framework for action on marine plastic litter.
- Taming Financial Crisis: For instance, the Financial Stability Board (FSB) was established by G20 leaders following the global financial crisis.
- To Tackle Global Issues
- Rising Protectionism: Example: US-China trade war.
- Global Investments: Global FDI has been sliding continuously.
- Climate Change: Increasing pollution and climate change require collaborative action.
- Peace process: Terrorism has become a major threat to world peace.
Significance of G-20 for India
- Platform to Globalize: G20 provides a platform to voice various issues such as financial stability, artificial intelligence, energy security, reforming multilateralism, and terrorism.
- Part of Globalisation: Being part of the largest economic bloc, G20 helps India integrate into the globalized world.
- Balancing Relationships: India has used this platform for trilateral meetings like JAI (Japan-Australia-India) and RIC (Russia-India-China), balancing its relations with global powers.
- Raise critical issues: As a regional power, India can raise critical issues affecting South Asia.
- Represent the Global South: India can represent the interests of the developing world or the global south.
- Multilateralism: G20 serves as an effective platform to engage multilaterally with all major nations worldwide.
Way Forward
- Covid Collective Action: India should emphasize the need for collaborative efforts in technology transfer, vaccine development, and supporting developing countries.
- Developing Nations: India, as a representative of the developing world, should forward the agenda of addressing poverty and malnutrition globally.
- Pak-Based Terror: The platform can be used to highlight terror networks in Pakistan and their impact on the region.
- Afghan Peace Process: G20 is a useful platform for India to showcase its role in Afghan development and to be involved in discussions regarding Afghanistan.
- Climate Change: India’s key requirement is climate finance, which developed countries are reluctant to provide; thus, G20 serves as a platform to highlight India’s needs.
- Broader Peace: Global peace and stability can be achieved through cooperation and discussion, with G20 being an effective and long-lasting avenue for this.