India this year hosting the prestigious G20 summit, after taking the presidency of this forum from Bali last year. But before we dwell on to the hits & miss of G20 Summit 2023 outcomes, here are some quick and basic details –
What is the G20?
The G20 is a forum comprised of nineteen most developed countries and the European Union(EU). The group was established in 1999 after the 1997-98 financial crisis of Asian Tigers. Till 2008 it worked as a forum for the Central Bank Governors, Financial ministers and industrialists. However, the 2008 global financial crisis pushed it to the leadership level.
The G20 represents a significant portion of the global economy, accounting for around 85% of the global gross domestic product (GDP), 80% of global trade, and two-thirds of the world’s population.
Despite all of this the forum somewhat lost its relevance over the last decade. But why?
The world, in the decade of 2010s, was relatively stable as compared to recent times. During this period the West also slowly lost its credibility as the flag bearer of progress and tranquillity. Bottlenecking the access to G7 also didn’t help in this matter. Several nations from the global south also developed significantly, weighing the influence of other forums like ASEAN and BRICS compared to the G20.
But this year’s G20 summit is on the course to change the trajectory of this forum.
Why is G20 2023 Summit so Crucial?
The answer can be summed up to one word ‘crisis’. The world today is going through an armed conflict that divides the world into fractions, a global food crisis, a global recession, and the crumbling of Western culture, economy and influence. And these came when the world was just starting to recover from a global pandemic. And that’s why India’s presidency of G20 can be the pivotal push that brings global stability.
G20 Summit 2023 Outcomes – How is India doing so far in G20?
According to experts on the subject matter, India has succeeded.
The hundred percent consensus on the ‘G20 New Delhi Leaders’ Declaration’ is a standing testament to that.
The New Delhi Leaders’ Declaration
The G20 leaders’ declaration is a series of texts drafted by the Sherpas and agreed by the leaders, in the area of common interest, progress and stability. The contents New Delhi Declaration address several crucial global issues.
Consensus on Ukraine
This was THE issue that was going define how the world saw India’s stewardship of the G20. President of China, Xi Jinping and Russian President Vladimir Putin we’re absent in the summit due to their difference in this matter with other world leaders. While Russia and China wanted to avoid discussion on Ukraine, Western nations wanted to condemn Russia with harsher words in the declaration. This issue has blocked consensus throughout India’s G20 Presidency.
Had Delhi failed to achieve consensus and release a joint declaration, the G20 summit may have been described as a failure. Proving everyone wrong, Delhi managed to get a joint declaration which will go down as THE big takeaway from this. The declaration emphasizes on the nature of the forum as an economic one. Thus highlighting the global food crisis that was a consequence of this conflict. It also praised the UN-brokered Turkey-Istanbul deal that tackles the food crisis. It also stated UN resolutions that urged ceasefire and encouraged peace quoting PM Modi “Today’s era must not be of war”.
African Union Becomes a Member
The 55-nation AU became a member of the G20 on 9th of September. Indian Prime Minister Narendra Modi welcomed the current AU chair, Comoros President Azali Assoumani, with a hug on Saturday at the G20 summit, saying he was “elated.” The African continent has 60% of the world’s renewable energy assets and more than 30% of the minerals key to renewable and low-carbon technologies. Congo alone has almost half of the world’s cobalt, a metal essential for lithium-ion batteries. This was a significant move for India, which has try to project itself as a Voice of the Global South.
Economy and Multilateralism
Poor countries have been struggling since the COVID-19 pandemic with high debt levels. Efforts to work together & bail them out (including by the G20) have been slow. Prioritizing temporary and targeted fiscal measures to protect the poor and the most vulnerable and maintaining medium-term fiscal sustainability at the same time, India managed to get consensus to help new countries like Ghana, Zambia and Ethiopia in their economic recovery.
The declaration also stated to work towards ease of trade while promoting small businesses and MSMEs through financial inclusion. It also emphasises to improve the future of workforce by mapping and addressing the skill gaps in worked and taking steps to prevent corruption.
The declaration also promised reform of institutions like World Bank & IMF to adapt them to today’s realities and more effectively enabling developing countries to access the resources they need. Besides this, progress on highly complex global tax reforms also took place. This will enable the forum to uphold above commitments and truly establish the building block of a multilateral world.
Digital Infrastructure
Through out its presidency, India successfully pushed the Aadhar, UPI technology and showed the world a new mean of financial inclusion that is respectful of human rights, personal data, privacy, and intellectual property rights. The leaders welcomed India’s plan to build and maintain a Global Digital Public Infrastructure Repository (GDPIR), a virtual repository of DPI voluntarily shared by G20 members and beyond.
Additionally, the declaration notes the Indian Presidency’s proposal of the One Future Alliance (OFA), a voluntary initiative aimed at building capacity, providing technical assistance, and adequate funding support for implementing DPI in low- and middle-income countries. This is expected to help India to export its homemade tech solutions across the developing world.
Apart from that countries agreed to consider regulations on cryptocurrencies given the threat they pose to the stability of the financial system. Working in AI technology to avail and benefit the global population while minimalizing its threat is also taken into consideration.
Sustainability and Climate Conservation
To decrease envision, India on Saturday announced the launch of the Global Biofuel Alliance and urged G20 nations to join the initiative with a plea to take ethanol blending with petrol globally. The G20 leaders recognize the vital role of private climate and encourage the development of financing mechanisms such as blended finance, de-risking instruments, and green bonds for projects in developing countries. The declaration also commits to protect, conserve, and sustainably manage forests and combat deforestation, while taking into account the challenges of local communities and indigenous peoples.
Additionally, the G20 leaders commit to prevention and mitigation of wildfires and remediation of mining-degraded lands. It also includes commitments of best practices on water, and welcomes the deliberations at the UN 2023 Water Conference and G20 Dialogue on Water.
Finally, the G20 leaders commit to conserving, protecting, restoring, and sustainably using the world’s ocean, and marine ecosystems.
Gender Equality
The G20 leaders commit to promoting the full and meaningful participation of women in a transitioning world by enabling inclusive access to employment opportunities, with a focus on closing the gender pay gap and ensuring equal access to decent work and quality jobs.
They also commit to promoting investment in the availability and accessibility of social protection and affordable care infrastructure to address the unequal distribution in paid and unpaid care and domestic work and to promote the continued participation of women in education and employment.
They also commit to promoting women’s inclusion into the formal financial system by strengthening their access to economic resources, particularly through digital finance and microfinance.
Conclusion
With impeccable preparations, solid execution and absolute mastery in foreign policy, India successfully hosted the leaders’ summit. It has set an example in diplomacy and restored confidence in global brotherhood, truly justifying the theme of the summit ‘One Earth, One Family ‘ or ‘Vasudhaiva Kutumbakam’.