G20 Summit 2023 – The G20, established in 1999, is an intergovernmental forum consisting of 19 countries and the European Union. Its primary objective is to address significant global economic issues, including matters such as international financial stability, climate change mitigation, and sustainable development. The G20’s member nations collectively represent over 80% of the world’s GDP, contribute to 75% of global trade, and encompass 60% of the world’s population.
The historical background of the G20 can be traced back to the Asian Tigers’ financial crisis in 1997-98, which prompted its formation. Initially, it served as a platform for Central Bank Governors and Finance Ministers from major industrialised and developing economies to engage in discussions regarding global economic and financial stability.
However, following the global financial crisis of 2008, the G20’s role was elevated to include Heads of State or Government. This change was driven by the recognition that effective crisis coordination required the involvement of top political leaders. In 2009, it was officially designated as the “premier forum for international economic cooperation.” Since then, G20 Leaders have regularly convened, solidifying the G20’s status as the foremost platform for global economic collaboration.
The G20 Summit 2023 operates through several key mechanisms
Annual Summit: Each year, a summit takes place where the Heads of State and Government from G20 member countries participate.
Finance Track: This track encompasses meetings involving G20 finance ministers, central bank governors, and their deputies. These discussions primarily revolve around financial matters.
Sherpa Track: The Sherpa Track addresses a wide range of issues, including political engagement, anti-corruption efforts, development, and energy policy. Each G20 member country appoints a Sherpa who acts as the representative and facilitator, responsible for planning, guiding, and implementing the country’s initiatives within the G20 framework.
Current Indian Sherpa: At present, Shri Amitabh Kant serves as India’s Sherpa for the G20, representing the country’s interests and working on its behalf.
Presidency Rotation: The presidency of the G20 rotates among its member countries on an annual basis. The country holding the presidency, along with the previous and upcoming presidency holders, forms a ‘Troika.’ This Troika plays a crucial role in ensuring the continuity of the G20 agenda, facilitating smooth transitions in leadership, and promoting consistency in G20 initiatives from year to year.
The 18th G20 Summit 2023 New Delhi.
The 18th G20 Summit took place in New Delhi, India, on September 9th and 10th, 2023. This marked the inaugural occasion of India hosting the G20 Leaders’ Summit.
The summit centered around the theme “Vasudhaiva Kutumbakam,” translating to “The world is a single family.”
New Delhi declaration – G20 Summit 2023
The G20 Summit 2023 Delhi Declaration, a momentous and groundbreaking statement, was unanimously adopted, demonstrating full consensus on all matters related to development and geopolitics. The acknowledgment of geopolitics is particularly noteworthy, given the backdrop of the Russia-Ukraine conflict. The declaration expressed profound concern regarding the extensive human suffering and the negative consequences of global wars and conflicts. The confirmation of consensus on the declaration and its subsequent approval occurred shortly after India distributed a revised text to the G20 member countries to address the Ukraine conflict.
The declaration also highlighted the inclusion of “Mission Life (Lifestyle for Environment),” which is a worldwide initiative designed to combat the harmful effects of climate change and protect our planet. The Indian Prime Minister emphasized the need for immediate and intensified efforts to tackle both development and climate-related challenges. He called for the promotion of sustainable development lifestyles (LiFE), as well as the preservation of biodiversity, forests, and oceans.
Key Highlights of G20 Summit 2023
1. Acceptance of the African Union into the G20 (now transitioning to G21):
The G20 leaders have reached a consensus to include the African Union as a permanent member of the G20, marking a significant move to enhance the participation of developing nations in this forum.
Incorporating the African Union into the G20 creates a unique prospect to reform global trade, finance, and investment. It also bestows a more prominent platform for the Global South to express their views and concerns within the G20. This decision enables the G20 to acknowledge and consider African interests and perspectives, thereby enriching the diversity of voices within the group.
2. Global Biofuels Alliance
The Global Biofuels Alliance (GBA) is an initiative led by India with the goal of forming a coalition comprising governments, international organizations, and the industry. Its primary objective is to advocate for the widespread adoption of biofuels. This initiative aims to establish biofuels as a pivotal element of the global energy transition while also contributing to the creation of jobs and economic expansion. GBA intends to expedite the progress of India’s ongoing biofuels initiatives such as the PM-JIVANYojna, SATAT, and the GOBARdhan scheme. According to the International Energy Agency (IEA), there is a significant growth potential of 3.5-5 times for biofuels by 2050, driven by Net Zero targets, which presents a substantial opportunity for India. The alliance was launched with nine initiating members: India, the US, Brazil, Argentina, Bangladesh, Italy, Mauritius, South Africa, and the United Arab Emirates.
3. The India – Middle East – Europe Economic Corridor (IMEC)
The India – Middle East – Europe Economic Corridor (IMEC) has taken shape with the signing of a Memorandum of Understanding (MoU) involving the Governments of India, the United States, Saudi Arabia, the European Union, the United Arab Emirates, France, Germany, and Italy. IMEC is a key component of a broader initiative known as the Partnership for Global Infrastructure Investment (PGII), which was initially introduced during the G7 summit held in the UK in June 2021.
The primary objective of PGII is to fund infrastructure projects in developing nations through a combination of both public and private investments. IMEC, as a substantial infrastructure endeavor, connects India, the Middle East, and Europe. The project’s core aim is to establish an extensive network of transport corridors, encompassing railways and sea routes.IMEC is strategically perceived as a countermeasure to China’s Belt and Road Initiative (BRI), offering an alternative infrastructure network.
4. G20 Global Partnership for Financial Inclusion
The G20 Global Partnership for Financial Inclusion document, as prepared by the World Bank, has commended the significant, transformative influence of India’s Digital Public Infrastructure (DPI) over the last decade, under the purview of the Central Government. This document highlights the key initiatives that have played a pivotal role in shaping the landscape of DPI.