14th Sep, 2023
The 18th G20 Summit of 2023 recently concluded in New Delhi, India, marking the first-ever G20 summit hosted by the country.
So, Let us take a look at highlights of the summit.
- The G20 originated in 1999 in response to the Asian financial crisis of 1997-98, initially serving as an informal platform for finance ministers and central bank governors from both developed and developing economies.
- In 2008, following the global financial crisis, the G20 expanded to include the heads of state of member countries.
- The G20 Presidency rotates annually under a troika system, involving the current, previous, and next host countries.
- In 2022, India took over the G20 Presidency from Indonesia, the preceding member of the troika.
- The presidency has now been passed to Brazil, the next troika country.
About the summit 2023:
- The summit’s theme, “VasudhaivaKutumbakam” or “One Earth, One Family, One Future” is rooted in ancient Sanskrit texts and the goal of sustainable development.
- The G20 Summit 2023 has concluded recently under India’s presidency which has ignited many upcoming plans for India, who is now about to become the leader of the Global South.
- India was successfully able to achieve consensus around the New Delhi Declaration early on in the G20 Summit, which saw a dilution in the position taken by the U.S. and EU on Russia, besides focus on UN Sustainable Development Goals, climate action and green development initiatives, multilateral financing, digital public infrastructure, artificial intelligence (AI), and international taxation, among others.
- India also invited Nigeria, Egypt, and Mauritius as part of the ‘Guest Countries’ at the G20 summit.
What were the Key Outcomes of the summit?
- Social Issues and Women:
- Gender equality and environmental goals are mutually reinforcing and create a virtuous circle that will help accelerate the achievement of the SDGs (Organization for Economic Co-operation and Development, 2021).
- India calibrated efforts toward education with a focus on STEM and one of the critical contributions of its presidency included ‘TechEquity’, a Digital Inclusion Platform through which girls and women can skill, upskill and reskill themselves in digital literacy, financial literacy and other technical subjects.
- With contributions from across G20 Member States, courses in over 120 Indian and international languages will be available on the platform.
- This platform will address the gender digital divide with an expected outreach of 1 million girls and women.
- As a Voice of Global South- Signed New Delhi Declaration
Key Highlights of New Delhi Declaration:
- Included African Union as a member:The Group of 20 (G-20) annual summit welcomed the African Union as a member, marking an important development in global economic cooperation.
- The summit did not explicitly condemn Russia for its war in Ukraine but called on all states to refrain from using force to seize territory.
- The G-20 emphasized the importance of abiding by the principles of the United Nations Charter and declared the use or threat of nuclear weapons as 'inadmissible.'
- The declaration urged Russia and Ukraine to ensure the immediate and unhindered delivery of essential goods, including grains and fertilizers, to meet the demands of developing and least developed countries, particularly in Africa.
- The G-20 called for a halt to military destruction and attacks on food and energy infrastructure and expressed concerns about high volatility in food and energy markets.
- Member countries committed to a "phasedown" of coal usage in line with their national circumstances. They also pledged to triple renewable energy sources by 2030.
- Developing countries require $5.8 to $5.9 trillion in the pre-2030 period to meet their climate goals. The world needs an additional $4 trillion annually by 2030 to achieve the net-zero carbon emission goals by 2050.
- The New Delhi Declaration called for reforms in international financial institutions, addressing debt vulnerabilities in low and middle-income countries, and initiating the exchange of tax-relevant information on crypto assets by 2027.
- It stressed the importance of well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities, and maintain economic stability.
- Regulating Economies
Global approach to regulate cryptocurrencies
The global push for a clear policy on crypto assets has gained momentum under the Indian presidency, and a global consensus is emerging on the same.
The consensus at New Delhi:
- Under the Finance Track of India’s G-20 presidency, a co-ordinated global approach was discussed for regulating cryptocurrencies and strengthening multilateral development banks’ (MDBs) lending capacity.
- The New Delhi Declaration adopted by the G-20 leaders noted that they “continue to closely monitor the risks of the fast-paced developments in the crypto-asset ecosystem”.
- It emphasized to endorse the Financial Stability Board’s (FSB’s) recommendations for the regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements.
- This will help in use of digital public infrastructure like the India Stack to expand financial inclusion around the world.
- However, it does not outright impose any ban on crypto currencies.
- Growing Trade and Commerce
India-Middle East-Europe Economic Corridor (IMEC)
- In a bid to stimulate economic development through enhanced connectivity and economic integration, India, along with other members of the G20, has entered into a historic memorandum of understanding (MoU) to develop an India-Middle East-Europe economic corridor.
- The project is a part of the Partnership for Global Infrastructure Investment (PGII) — a West-led initiative for funding infrastructure projects across the world.
- Objective: The corridor aims to provide a reliable and cost-effective ship-to-rail transit network between Asia, Middle East and Europe.
- Proposals: The corridor will comprise of two separate corridors, Eastern and Northern.
- Member Nations:Apart from India, the other participants will include Saudi Arabia, UAE, France, Germany, Italy, USA and the European Union.
- Adopting Climate Resilient methods
Global Biofuel Alliance (GBA)
- GBA is an India-led Initiative to develop an alliance of Governments, International organizations and Industry to facilitate adoption of biofuels.
- Objective:Bringing together the biggest consumers and producers of biofuels to drive biofuels development and deployment, the initiative aims to position biofuels as a key to energy transition and contribute to jobs and economic growth.
- Joining Members: 19 countries and 12 international organisations have already agreed to join.
- G20 countries (07) supporting GBA: Argentina, Brazil, Canada, India, Italy, South Africa, USA
- G20 Invitee Countries (04) supporting GBA: Bangladesh, Singapore, Mauritius, UAE.
- Non G20 (08) supporting GBA: Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, and Uganda have agreed to be initiating members of GBA, and Finland.
- International organizations: World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, UN Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.
What are the Geo-political questionnaires surrounded G20 Summit?
- Non-Participation of Russian President: Russian President Vladimir Putin's decision to skip major global gatherings is not uncommon for world leaders. However, his international travel is closely monitored due to the International Criminal Court (ICC) issuing a warrant for his arrest related to the war.
- India's Stance: India, while not a party to the ICC, maintains diplomatic relations with Russia and is unlikely to arrest Putin despite the ICC warrant.
- India seeks to preserve its positive ties with Russia, even amid international concerns about the conflict.
- Putin's Travel Scrutiny: The ICC warrant adds an extra layer of scrutiny to Putin's international travel, but it is important to note that diplomatic and political considerations often take precedence in such situations.
- Check-mate to China:
- Chinese President Xi Jinping's decision to skip the annual G20 summit has raised questions and speculation.
- This is the first time he has not attended, and his absence has led to uncertainty about the reasons behind it.
- There are several potential reasons for Xi's absence. It could be related to the ongoing border tensions with India and the United States' efforts to strengthen ties with India as a counterbalance to China.
- Additionally, Xi may be concerned about domestic issues, such as an economic crisis and growing discontent within China.
- Impacts:Xi's absence from the G20 summit could have implications for the global economy.
- The G20 is a crucial forum for international economic cooperation, and leaders use private meetings to make significant deals.
- Without Xi's presence, discussions on key economic issues may be affected, especially if a Chinese economic crisis were to occur.
India’s briefing for G20 Summit:
- Prime Minister NarendraModi’s diplomatic coup: At the Summit, India was able to leverage its economic significance to garner support from all G20 member nations for a Leaders’ Declaration recognizing the conflict in Ukraine without specifying any aggressor.
- Modi, who chaired the Summit, also advocated for reforming global institutions like the United Nations Security Council (UNSC) to align with the changing world dynamics, which received backing from the United States.
- India has successfully positioned itself as a champion for developing and underdeveloped nations and seeks to align this with its ambitions for a permanent seat on the UNSC.
- New Delhi is actively seeking support from the African continent, which holds 55 crucial votes, in pursuit of this goal.
Bilateral meetings on the sidelines
- During the 2023 New Delhi G20 Summit, India engaged in a series of bilateral meetings with world leaders.
- PM also addressed issues of mutual interest with various leaders.
- In one notable meeting, Modi raised India’s deep concerns regarding extremist elements in Canada supporting secessionism, inciting violence against Indian diplomats, and threatening the Indian community there.
- President Biden highlighted the partnership between India and the U.S., rooted in Mahatma Gandhi’s principle of trusteeship, shared between the two nations.