Importance of the G20 Summit

Sometimes the terms “globalization” and “interconnectedness” are used interchangeably. As a result of globalization, the world has shrunk to the size of a town. On the margins of the Extraordinary Virtual G20 Leaders’ Summit 2020, Indian Prime Minister Narendra Modi made a call to envision a globalized society with humanity at the center. Furthermore, the Prime Minister advocated moving away from the old-fashioned concentration on banks and economics and steering toward humanity, climate change, and terrorism.

According to common belief, when China sneezes, the rest of the world catches a cold. This term, however, has gained appeal as China’s economy has risen.

Global economies are reportedly shutting down production lines in reaction to a new virus (COVID-19), global consumption is decreasing, and growth predictions are being revised lower. As a result, experts worldwide are trying to determine the true impact of COVID-19’s spread in this globalized society.

History & Objectives

Finance ministers proposed the development of the G20 at the G7 summit in Cologne in June 1999 to improve the worldwide financial architecture. The G20 was established in December 1999 as a regular meeting place for finance ministers and central bank governors. The G20 was raised a notch higher in November 2008, when state and government leaders met in Washington for the first time to confront the global economic and financial crisis. As a result, it has become the critical forum for major industrial and developing nations to discuss crucial international currency and monetary policy concerns.

Since then, the Group of Twenty, or G20, has been the primary forum for international cooperation on the most serious challenges confronting the global economy and financial system. It brings together the world’s largest developed and emerging economies. Furthermore, the G20 nations account for around 85% of global GDP, 80% of international commerce, and 60% of the world’s population. The G20’s objectives are to coordinate policies among its members, generate sustainable growth, decrease risk, and construct a financial architecture. The G20’s operations are guided by the Finance and Sherpa Tracks, while Engagement Groups bring civil society together. Some argue that the G20 is not a legally binding organization and that it should be reinforced.

Roles and Responsibilities

 The G20 is a platform where leaders have reaffirmed their standstill commitment to working with developing countries, particularly low-income countries, to help them implement nationally driven policies and priorities necessary to meet internationally agreed development goals, particularly the Millennium Development Goals (MDGs).

The G20 promotes growth and development by providing policy consistency, analysis, and practical instruments. This allows G20 members to better target their collaboration with developing nations and amplify development initiatives on the global agenda. 

It encourages all people to participate in society and to have equal chances. Many job-seekers have benefited from the G20’s coordinated efforts in human resources. The G20 members have had and will continue to have significant repercussions on low-income developing countries’ growth and development (LIDCs).

Global Growth

The G20 is critical in creating an atmosphere favorable to equitable global growth and development. Its efforts to create prosperity, guarantee financial stability, and avoid and manage crises are crucial. As a result, as emerging economies integrate more fully into the global economy, they assist the G20 in achieving its goal of robust, sustainable, balanced, and inclusive global growth. The 2030 Agenda for Sustainable Development also provides a bold, transformative, and global development plan, and the G20 is well-placed to assist with its implementation and maximize its collective effect.

The G20 plays a critical role in building an environment that promotes inclusive global growth and development. Ensuring financial stability, encouraging growth, and avoiding and managing crises are crucial in enabling the potential. As a result, as developing economies become more integrated into the global economy, the G20 can fulfill its aim of strong, sustainable, balanced, and inclusive global growth. The 2030 Agenda for Sustainable Development also creates a bold, new, and global framework for sustainable development. The G20 is well-positioned to assist in implementing and maximizing its collective effect.

Role of President

The G20 president undertakes several measures to help members debate and coordinate policy on matters of mutual interest. The current change in focus to the Global South reflects developing economies, such as India’s growing importance in leading international development cooperation and strengthening multilateralism. Thanks to its human resources and entrepreneurship, India’s aggressive push into the global economy has established its place as a leader among emerging and developing countries. India’s significant role in global economic governance has prompted it to participate in the G20 process actively.

India has participated in G20 processes, including Sherpas and the Finance Track. Its dedication to global collaboration, inclusive development, economic stability, and long-term progress aligns with its national goals and other G20 leaders’ ideals. “Over the next five years, rising countries like ours will lead the organization,” India’s G20 Sherpa Piyush Goyal said in October 2021. “It is a once-in-a-lifetime chance to contribute to a more inclusive and equitable agenda at the G20.”

Conclusion

India’s significant role in global economic governance has prompted it to participate in the G20 process actively. The worldwide epidemic. COVID-19 is going down in history, and the G20 needs a more humanitarian touch. Ninety percent of cases and 88 percent of deaths occurred in G20 nations, and aggressive discussions with a collaborative approach will put this pandemic disaster to a close. India’s prime minister’s humanitarian appeal for empathy to be fostered among states is a step in the right way.