[Diplomacy] India and Group of 20 (G20) SummitsDevendra Vishwakarma
- What is G20?
- Members of G20
- Which 19 countries are members of G20?
- Describe the Organizational Structure of G20
- What is Sherpa’s Track and Finance Track?
- Write a note on G20 Leaders Summits
- 2008: 1st Summit, Washington
- 2009: 2nd Summit in London
- 2009: 3rd Summit in Pittsburgh
- 2010: Fourth Summit in Toronto
- 2010: Fifth Summit in Seoul
- 2011 Sixth G20 Summit in Cannes
- 2012 Seventh G20 Summit Los Cabos, Mexico
- India and G-20
- Mock Questions
What is G20?
- Group of 20, An international body created in 1999
- It provides a forum for strategic economic communication between industrialized (1st world) and developing countries.(3rd world)
- G20 originated as a response to the economic crises of the late 1990s;
- The G20 limits its discussion to economic matters.
- They’ve discussed the reduction of financial abuses and terrorist funding [but those are related to Economy].
- They donot talk about Indo Pak / Indo-China border disputes.
Members of G20
- 19 Countries + 1 EU = 20’s group
- IMF and World Bank also participate.
- Countries are represented by finance ministers and central bank governors
- EU is represented by the European Central Bank and a rotating council presidency.
Describe the Organizational Structure of G20
- G-20 operates without a permanent secretariat or staff.
- The chair rotates annually among the members and is selected from a different regional grouping of countries.
- The chair is part of a revolving three-member management group of past, present and future chairs referred to as the Troika.
- Current chair of the G-20 is Mexico; the next Chair will be Russia.
What is Sherpa’s Track and Finance Track?
G20 Summit’s background agenda/preparation is made through two tracks.
Write a note on G20 Leaders Summits
2008: 1st Summit, Washington
- First Summit was hosted by the US President in Washington in November 2008 to develop a coordinated response to the global financial crisis
- At the First Summit, the Leaders discussed the causes of the global economic and financial crisis and agreed to implement an Action Plan around three main objectives
- Restoring global growth
- Strengthening the international financial system
- Reforming international financial institutions
2009: 2nd Summit in London
- stimulus package of US$ 1.1 trillion to restore credit and growth
- expansion of Financial Stability Forum (renamed as ‘Financial Stability Board’ or FSB)
- Basel Committee on Banking Supervision (BCBS)
- commitment against protectionist trends (including trade, investment and services)
- commitment to reform of International Financial Institutions.
2009: 3rd Summit in Pittsburgh
- It designated the G20 as the ‘premier forum’ for international economic cooperation
- Framework for Strong, Sustainable and Balanced Growth’ in the 21st century
- sound macroeconomic policies that prevent cycles of boom and bust through a Mutual Assessment Process (MAP) or ‘peer review’ which is co-chaired by India
- decision to reform the International Financial Institutions by
- shifting IMF’s quota share to dynamic Emerging Markets and Developing Countries (EMDCs)
- adoption of a dynamic formula for the World Bank to generate an increase of at least 3% voting power for developing and transition countries that are under-represented;
- ensuring that World Bank and Regional Development Banks (RDBs) have sufficient resources to address global challenges.
2010: Fourth Summit in Toronto
- Recovery and New Beginnings’ focused on the ‘Framework for Strong, Sustainable and Balanced Growth
- Phase-I work comprising MAP (or ‘peer review’) by groupings of countries.
- Advanced economies have committed to fiscal consolidation,
- halving of fiscal deficit by 2013
- stabilizing debt by 2016 as part of internal re-balancing
- differentiated approach to consolidating growth and recovery versus exit strategies and fiscal consolidation, i.e. ‘growth-friendly fiscal consolidation’.
- Development’ was introduced for the first time on the G20 agenda to be addressed through a High-Level Development Working Group (DWG).
2010: Fifth Summit in Seoul
- theme ‘Shared Growth Beyond Crisis’
- Multi-Year Action Plans (MYAP) under the nine development pillars
- Infrastructure (including a High-level Panel on infrastructure financing)
- Human Resources Development
- Private Investment and Job Creation
- Food Security
- Growth with Resilience
- Domestic Resource Mobilization
- Knowledge Sharing [so that kids don’t have to goto Kota for IIT coaching]
- Financial Inclusion [getting poors in the banking and insurance net]
2011 Sixth G20 Summit in Cannes
- Reviewed the global economic situation in the backdrop of the Eurozone/Greek crisis
- regulation of commodity derivatives markets,
- Action Plan on Food Price Volatility and Agriculture [#EPICFAIL: doesn’t seem to be working, foods, veggies and milk are more expensive than ever!]
- increase in transparency of energy markets [lol, talk about coal mining scams]
- Declaration’ titled ‘Building our Common Future: Renewed Collective Action for the Benefit of All’
- Cannes Action Plan for Growth and Jobs
2012 Seventh G20 Summit Los Cabos, Mexico
- promote economic stabilization and structural reforms
- Strengthening the financial system
- fostering financial inclusion to promote economic growth
- Improving the international financial architecture in an interconnected world;
- Enhancing food security
- addressing commodity price volatility
- promote sustainable development,
- green growth and the fight against climate change.
India and G-20
- As a major developing economy India has a vital stake in the stability of the international economic and financial system.
- Therefore, India been actively involved in the G20 preparatory process both at the Sherpas Track and the Financial Track since its inception.
- Our PM has participated in all six G20 summits
- Our Agenda at the G20 Summits is:
- bring in greater inclusivity in the financial system,
- to avoiding protectionist tendencies (that is Obama mustnot put heavy tax on firms outsourcing their work to Banglore and EU doesn’t put heavy tax on our medicines.)
- ensuring that growth prospects of developing countries do not suffer.
- We’ve welcomed the inclusion of development as an agenda item of G20 process at the Seoul Summit
- We have supported the Seoul Development Consensus and the associated Multi-Year Action plans
- Mohan has called for the recycling of surplus savings into investments in developing countries. (Our own savings are around 25% of GDP, All tied up and saved in gold and real-estate.)
- Reforming Bretton Woods’s institutions (that is IMF and World Bank)
- Facilitating trade finance, pushing forward the Doha agenda. (that is WTO agreement and India’s problem with agro subsidies given to American farmers)
- We remain committed to the G20 process for achieving a stable, inclusive and representative global economic and financial system.
Which of the following statements are correct?
- G20 consists of 20 nations
- Cannes is a city in Germany.
- Seoul is the capital of S.Korea
- Los Cabos is situated in Spain
- Doha is the capital of Baherin.
- Toronto is the capital of Canada.
For Mains each 150 words/ 15 marks
- Evaluate the role of G-20 in solving the global financial crisis.
- Write a note on India’s engagement with G20
- What were the outcomes of Los Cabos summit of G20?