G20, 17th Annual Summit, Bali

Why in news

• About G20
• Functioning of G20
• Outcomes and Bali Declaration
• Challenges
• Way forward

17th annual summit of G-20, Bali, Indonesia

• Theme: ‘Recover Together, Recover Stronger’
• 18th summit will be held in India in 2023
• Constituents world’s 20 largest economies
• Troika- term used for previous, current and incoming presidency.
They works together to ensure continuity of the agenda.
At present, the Troika= (Indonesia, India, Brazil)
• India has clearly stated that Use of Dialogue and Diplomacy should
be carried out to resolve issues like Ukraine – Russia conflict. On
the same line differences between Russia and the west should be
sorted out.
• “Today’s era must not be of war.”- PM

About G20:

• formed in 1999 in the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular.
• 9 years later, on November 14-15 2008, I G20 Summit @Washington DC(USA)• is a strategic multilateral platform which aims to secure global financial stability by involving middle-income countries. • constituates-60% of the world’s population, 80% of global GDP, and 75% of global trade. • the world’s 20 leading industrialized and emerging economies.

Functioning of G20

• The G-20 has no fixed headquarters,
• Secretariat moves by rotation between the countries hosting or assuming Presidency each year.
• The members are divided into five groups (India is in Group 2, along with Russia, South Africa and Turkey).
• Sherpas: special envoys of G-20 leaders: The G-20 agenda depends heavily on the guidance of Finance Ministers Ministers and central Governors central Governors , but it is finalized but it is finalized by a unique by a unique system of ‘Sherpas’. • Amitabh Kant has been appointed the PM’s G-20 Sherpa.
• G20 Comprises: Finance Track, Sherpa Track and Engagement Groups of private sector/ civil society/ independent bodies.

Outcomes and Bali declaration

1. Condemning Russian Aggression and stressed the need to uphold international law
2. Focus on Global Economy: agreed to pace interest rate rises carefully to avoid spillovers and warned of “increased
volatility” in currency moves.
3. Food Security: promised to take coordinated action to address food security challenges and applauded the Black Sea
grains initiative.
4. Climate Change: agreed to pursue efforts to limit the global temperature increase to 1.5 degrees Celsius confirming 2015
Paris Agreement on climate change.
5. Reaffirmed commitment to close the gap in energy access and eradicate energy poverty
6. Digital Transformation: recognized the importance of digital transformation in reaching the SDGs and encouraged international collaboration to further develop digital skills and digital literacy to harness the positive impacts of digital transformation, especially for women, girls, and people in vulnerable situations.
7. Welcomed crypto asset reporting framework and call for open, fair, nondiscriminatory inclusive digital economy.
8. Health: welcomed the establishment of a new financial intermediary fund- the ‘Pandemic Fund’ (hosted by the WB for pandemic
prevention, preparedness and response), commitment to strengthen global health governance through WHO, other international groups.

Challenges before G20

1. Impact of Russia’s Invasion of Ukraine
2. Rising Inflation and interest rate hikes: US and the UK are setto face a recession; others, such as those in the EU, are likelyto slow down to almost a halt
3. Slowdown of Major Economies: China slowdown as itstruggles with real estate crisis
4. Rising Geopolitical Geopolitical Rifts: tensions tensions between between the US andChina,the decline in trade between the UK and the EU in the wakeof the Brexit decision.

Way Forward

1. Peace: “a strong, sustainable, balanced, and inclusive recovery requires joint action by the G-20”. This kind of joint action, in turn, requires not just securing peace in Ukraine but also preventing further fragmentation” :IMF
2. Containing raging inflation: price stability while bringing down debt levels and protecting the most vulnerable without necessarily ballooning the debt levels.
3. more open, stable, and transparent rules-based trade: that would help address global shortages of goods and
strengthening the resilience of global value chains

Importance of developing countries leadership/presidency

• Indonesia has made a beginning by working in areas such asinnovation, empowering MSMEs and vulnerable groups, collaborationbetween developed and developing countries.
• Indonesia’s Just Energy Partnership: is a long-term political agreementbetween the Indonesian Government and the International PartnersGroup (IPG). Indonesia is among the world’s top 10 greenhouse gasemitters emitters. The JETP will help the country country to achieve achieve an acceleratedacceleratedshiftfrom fossil fuel dependence to renewable energy sources.
• India’s G20 priorities are- inclusive, equitable and sustainable growth,women’s empowerment, digital public infrastructure, tech-enableddevelopment, climate financing, global food security and energysecurity, among others.

18th summit 2023:India’s presidency

• Opportunity to make a mark as a global leader.
• India should focus upon utilizing the 2023 summit as a platform to raise
discussions on issues such as aggressive trade barriers/ sanctions, inter country conflicts, global peace and cooperation.
• PM underlined focus on environment, women-led development, peace and security, economic growth, technological innovation.
• The logo of India’s presidency bears a lotus and the message of ‘VasudhaivaKutumbakam —One Earth, One Family, One Future.
• PM said: “India, with its mantra of ‘One Sun, One World, One Grid’, has called for a renewable energy revolution in the world. India took up a campaign of ‘One World, One Health’ to strengthen global health. Now, in the G20 also, our mantra is One Earth, One Family, One Future. These thoughts and values of India show the way for the welfare of the world”.