G20 Summit in Osaka, Japan
India & world
8th Jul, 2019
India refuses to sign declaration on free flow of data across borders at the 14th session of G-20 Summit being held in Osaka, Japan
G – 20
- After the Asian Financial Crisis in 1997-1998, it was acknowledged that the participation of major emerging market countries is needed on discussions on the international financial system, and G7 finance ministers agreed to establish the G20 Finance Ministers and Central Bank Governors meeting in 1999.
- G-20 was founded with the aim to discuss policy pertaining to the promotion of international financial stability. It is a premier forum for international economic cooperation which represents 85% of the global GDP.
- G – 20 is the world’s most powerful economic club, bringing together 20 most developed and emerging economies in the world, spread across five continents. The G20 comprises around 90 per cent of the global GDP, 80 per cent of the world trade and more than two-third of the world’s population.
- The G20 Summit is formally known as the “Summit on Financial Markets and the World Economy”.
- The participants are leaders from 19 countries and the European Union (EU). The 19 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Republic of South Africa, Russia, Saudi Arabia, Turkey, United Kingdom, United States of America
- G-20 Summits
- The very first of G-20 summit was held in the Washington, D.C. (United States) in 14–15 November 2008. The 14th G-20 summit was held in Osaka (Japan) on 28–29 June 2019.
- India has not hosted a G20 summit till now. But 17th G-20 Summit is scheduled to be hosted by India in 2022.
Global Significance of G20 Summit
As globalization progresses and various issues become more intricately intertwined, the recent G20 summits have focused not only on macro-economy and trade, but also on a wide range of global issues which have an immense impact on the global economy, such as development, climate change and energy, health, counter-terrorism, as well as migration and refugees.
This meeting is coming at a time which is seeing perhaps the most significant shift in the global environment since the cold war. This can be explained on the basis of following points:
- Threat to International Trade: World Trade Outlook has signalled continuous fall in trade growth in the first half of 2019. In the name of protecting domestic industries, countries like US, Russia, China and India are imposing steep tariffs on products of rival countries.
- Foreign Direct Investment: According to a UN Report released recently, Global FDI slid to 1.3 Trillion dollars in 2018, in its third annual decline
- Increasing Pollution and Climate Change: According to World Bank, air pollution costs societies more than 5 trillion dollars every year.
- Terrorism: According to Global Terrorism Index 2018, compiled by the Institute for Economics & Peace (IEP), Islamic State, the Taliban, Al-Shabaab and Boko Haram were responsible for 10,632 deaths in 2017.
- Gulf Crisis: The Gulf crisis has had both global and specific effects on developing countries. The crisis, in particular the period of higher oil prices, has adversely affected world growth and hence growth in developing countries.
Significance for India
- India was able to raise issues such as financial stability, artificial intelligence, energy security, reforming multilateralism and common efforts to address terrorism at the summit.
- Apart from a series of bilateral meetings with other countries, India may also go ahead with a couple of trilaterals (RIC=Russia-India-China and JAI=Japan-America-India) on the sidelines of the G20 summit.
- India was able to defend the RBI’s proposed data localisation guidelines by refusing to attend the digital economy pushed by Japanese PM.
- The concerns related to dealing with fugitive economic offenders and climate change also found place in the final declaration.
The G-20 is an important platform to discuss pressing issues and India should lead the exercise in making the G-20 more effective in dealing with some of the inequities in its system.