G20

Why in news?

• India will assume the presidency of the G20 from December,2022 and host the summit of leaders of the G20 in New Delhi during September 9-10, 2023.

About G20:

• The Group of twenty, or the G20, is the premier forum for international economic cooperation. It is formally known as “Summit on Financial Markets and the World Economy”.
• Collectively, G20 members account for more than 80% of world GDP, 75% of global trade and 60% of the population of the planet.

History:

• Established in 1999 at the level of Finance Ministers and Central Bank Governors, the G20 gathered for high-level discussions on macro-financial issues.
• In the wake of the 2008 global financial crisis, the G20 membership and agenda were expanded beyond macro-financial issues, to include socio-economic and development issues.

Members:

Functioning:

• The G20 does not have a permanent secretariat.
• Its agenda and activities are established by the rotating Presidencies, in cooperation with the membership.
• The G20 hold summits annually. At the Summit, the leaders issue a declaration, or communiqué, based on policy discussions
• The 2022 meeting will be hosted by India.
• At the government level, the G20 work is organized around the Finance and Sherpa Tracks, while civil society assembles through Engagement Groups.
  • The Finance Track: meetings of G20 Finance Ministers and Central Bank Governors which focus on fiscal and monetary policy issues such as the global economy, infrastructure, financial regulation and international taxation.
  • The Sherpa Track: meetings of Ministers and relevant senior officials, which focus on socioeconomic issues such as agriculture, anti-corruption, climate, digital economy, education, employment, energy, environment, health, tourism, trade and investment.
  • Engagement Groups: The group actively engages itself with various groups such as the Business 20, Youth 20, Labour 20, Think 20, Civil 20, Women 20, Science 20, and Urban 20.
• In addition to the Summit, ministerial meetings, Sherpa meetings, working groups and special events are organized throughout the year.

Presidency & Troika

• The presidency of the G20 rotates between member countries every year. The presidency plays a leading role in setting the agenda and organizing the Leaders’ Summit.
• When a new country assumes the presidency, it works hand-in-hand with the previous presidency and the next presidency. This arrangement is known as the troika.
• This ensures continuity in the group’s agenda.

Add ons:

• India is currently part of the G20 Troika which comprises the current, previous and incoming G20 presidencies and includes Indonesia, Italy and India.
• During its presidency, the troika will include India, Indonesia and Brazil. This will be the first time that the troika will consist of three developing countries and emerging economies providing them with a greater voice.

PRACTICE QUESTION:

Which of the following countries is not a member of G20?

(a) South Africa

(b) Saudi Arabia

(c) New Zealand

(d) South Korea

Answer