WHAT IS G20 SUMMIT?
- The G20 Finance Ministers and Central Bank Governors Summit was established in response to both the financial crisis of 2007–2008 and the growing realization that important emerging countries were not sufficiently represented in the core of global economic discussion and governance. It prepares the leaders summit and puts their decisions into action. There were other G20 summits for heads of state or government.
- MEMBERS: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the EU. (Spain is invited as a permanent guest.)
- There is no permanent secretariat for the G20.
- The G20 representatives, referred to as “Sherpas,” collaborate with the finance ministers and central bank governors to coordinate the agenda and activities.
- The organization’s main goal is to promote international economic cooperation, with a focus on averting global financial crises in the future.
- It significantly influences how the global economic agenda is set.
- From 1999 to 2008, the meeting expanded to include heads of state in addition to central bank governors and finance ministers.
PRESENT NEWS
- According to a recent announcement by the Ministry of Foreign Affairs (MEA), India will host the G-20 (Group of 20) leaders’ summit in New Delhi in 2023 (in the month of September).
- India has taken over the G20 presidency in December 2022 following the 17th Heads of State and Government Summit of the G20, which took place in Indonesia in November 2022.
- India will be holding the G20 Presidency for a year.
Here are some reasons why India should host the summit in 2023:
- India has a unique chance to contribute to the global agenda on important issues of global importance during its G20 Presidency.
- Constructing a global consensus on UN reform was the first step toward creating a new international order for the post-Covid era.
- It is a chance to assume the position of leader of the Global South.
- the G20’s growing significance in a world where urgent challenges like climate change, the COVID-19 pandemic, and the conflict in Ukraine exist.
INDIA’S PRESIDENCY INCUDES:
- As of holding the G20 presidency, India will host close to 200 meetings in 32 different industries at various locations around the country.
- G20 Theme: The theme of India’s G20 Presidency is “Vasudhaiva Kutumba-Kam,” or “One Planet, One Family, One Future.“
- India would make efforts to prevent there from being a “first world or third world,” but rather “simply one world.“
- India’s attempts to realize its vision of unifying the entire world in pursuit of a common objective and a better future are embodied by the G20 Theme.
CHALLENGES FOR G20 COUNTRIES:
- Growing Geopolitical Rifts: The international economy is struggling to deal with escalating geopolitical tensions like the conflict between the two largest economies in the world, the US and China, or the decline in trade between the UK and the euro area after the Brexit vote.
- Key Economies Slowing Down: Due to its protracted real estate crisis, China, one of the main drivers of the global economy, is currently suffering through a severe downturn.
- Predicted Recession: While a recession is anticipated in some of the world’s greatest economies, such as the US and the UK, others, such as those in the euro area, are more likely to see a slowdown or even a stop.
- Consistently High Inflation: Globally, rising inflation has lowered purchasing power and slowed economic growth. In certain nations, inflation is at historic highs.
- Russia’s invasion of Ukraine has had the following effects in addition to dramatically raising geopolitical ambiguity: increased global inflation. The situation has gotten worse as a result of the related Western sanctions.
- Effect of escalating inflation in reaction to the high inflation, central banks around the world raised interest rates, which further slowed down economic activity.
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