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THE PRESIDENCY CHALLENGES

November 12, 2022 | Expert Insights

In the 75th year of its Independence, India will take on the presidency of the G20 for one year starting from December this year. Last week, the Prime Minister unveiled the logo (a lotus) and the theme “One Earth, One Family, One Future.” India will host 200 meetings of the forum across the nation, and every state capital will host at least one meeting. It aims to convey to the participants the flavour of India's uniqueness.

Background

After World War II, the victorious allied nations had a vision of global prosperity and synergising economic policies. The Bretton Woods twins (International Monetary Fund and the World Bank) were founded, and what is now called the World Trade Organisation. The G20 was a later version formed in 1999 following several global economic crises. Its charter has expanded from the global economy to climate change and sustainable development over the years.

India has been part of G20 since its inception. Other members are some of the world’s largest industrialised and developing nations-Australia, Argentina, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. The group represents nearly two-thirds of the world's population, more than 75 per cent of global trade, and about 85 per cent of the world's GDP.

The actual work of the G20 is progressed through several tracks, including the Finance Track (Global Macroeconomic policies, infrastructure financing, International Financial Architecture, Sustainable Finance, Financial Inclusion, Health Finance, International Taxation, Financial Sector Reforms), the Sherpa Track (Anti-corruption, Agriculture, Culture, Development, Digital Economy, Employment, Environment and Climate, Education, Energy Transition, Health, Trade and Investment, Tourism) and Engagement Groups (Business 20, Civil 20, Labour 20, Parliament 20, Science 20, Supreme Audit Institutions 20, Think 20, Urban 20, Women 20 and Youth 20). The Prime Minister’s Sherpa for the G-20 is Shri Amitabh Kant.

For the 2023 summit, India has invited Bangladesh, Egypt, Mauritius, the Netherlands, Nigeria, Oman, Singapore, Spain, and the UAE as guests.

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Analysis

While its impact on the world has grown over time, the G20 has recently come under fire for internal strife and a failure to enforce norms.

India has a unique chance to contribute to the global agenda on urgent issues of international significance during the G20 Presidency. India's G20 priorities include, among others, climate financing, inclusive, equitable, and sustainable growth, women's empowerment, digital public infrastructure, and tech-enabled development.

However, G20 has lost much of its shine over the last few years because the internal gap is too evident. India must resolve its disputes and take the lead as it assumes the presidency, and it needs to forge ties and come up with new ideas.

India must draft a schedule that has unanimous support from all the members. Internal governance reform is urgently required, and India must promote inclusivity and unity. This will help reach a decision that will significantly assist in establishing a realistic, substantial agenda for the forum.

Another area where India has to cooperate with wealthy nations is climate financing. Clean technologies and renewable energy sources must be transferred from rich countries to middle- and low-income nations. India should accomplish this while showcasing its outstanding solar energy track record.

There is financial instability throughout the world and a stagnant global economy. In collaboration with the International Monetary Fund (IMF), Organization for Economic Co-operation and Development (OECD), World Trade Organization (WTO), and Financial Stability Board, India must develop a strategy to address the crisis.

Taking steps to secure global food security and formulating a clear G20 position on the conflict in Russia and Ukraine are two additional challenges. India must take a stern stance on a "code of conduct" for all G20 members at a time when there are growing calls to ban Russia from the conference and ensure that it is upheld.

Assessment

  • The G20 Presidency is a tremendous opportunity to interact with businesses. It's an opportunity to contribute to the global supply chain significantly.
  • India, an emerging technology giant, has the potential to redefine numerous aspects and steer the discourse in this area at the level of foreign policy. The need of the hour is to facilitate shared frameworks that are open, transparent, and equitable for the use of emerging technologies like AI, M2M technologies, quantum, cyber-physical systems, etc.
  • The world is facing huge challenges due to post-pandemic blues, debt distress, food and energy security, the triple planetary climate change crisis, biodiversity loss and pollution, and instability and conflict impacting people globally. G20, which has a broader representation than G7, must take up the cudgels on behalf of the global South.