India joins G20 Troika
7th Dec, 2021
Recently, India joined the G20 ‘Troika’ and with this India has started the procedure for taking over the G20 presidency next year. The G20 Troika is made of Indonesia, India and Italy.
What is Troika?
- Troika means a group of three people working together. It is an English word.
- The Troika of G20 is made of the current, next and immediate past host countries.
- The Troika ensures continuity and provides presidency support. With this move, India has started the procedure for taking over the G20 presidency.
What is G20 forum?
- The G20 is the premier forum for international economic cooperation, which reflects a recognition that global prosperity is interdependent and the economic opportunities and challenges are interlinked.
- The G20 comprisesnineteen countries with some of the world’s largest economies, as well as the European Union (EU).
- The countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom (UK), and the United States. Spain is invited as a permanent guest.
- India will assume the G20 presidency on December 1, 2022 from Indonesia, and will convene the G20 Leaders’ Summit for the first time in India in 2023.
- Indonesia took over the G20 presidency this year.
What is the need of Troika in G20?
- The G20 operates without a permanent staff or secretariat. The chair of the group rotates annually among its members.
- The current chair establishes secretariat temporarily. This secretariat organises meetings and coordinates the working of the group.
- Thus, there is need for Troika to help with the secretariat so that there is continuity in the works of G20.
What is importance of G20?
- The G20 (19 countries and the European Union) was born in 1999 as a consultation forum between finance ministers and central bank governors of the world’s major economies.
- Following the 2008 economic crisis, it became a forum between Heads of State and Governments, aimed at improving coordination on the main global issues.
- At present, G20 nations represent 60% of the global population, 80% of global GDP and 75% of global exports.
- The objectives of the G20 are:
- Policy coordination between its members in order to achieve global economic stability, sustainable growth
- To promote financial regulations that reduce risks and prevent future financial crises
- To create a new international financial architecture.
India and G20:
- As a founding member of the G20,India has used the platform to raise issues of vital importance and those that impact on the most vulnerable around the world.
- The global economic agenda making forum is to be presided over by India in 2022, it's achallenge as well as an opportunity for India to foster its presence in the international arena.
- But due to the rising toll of unemployment rates and povertyin the domestic portion, it’s hard to take the lead effectively.
What are the achievements of G20 groupings?
The main achievements of the G20 include
- Increased participation of emerging countries in global issues
- The reform of international financial institutions
- The monitoring of national financial institutions
- The improvement in the regulations of the economies whose problems led to the economic crisis and the creation of safety nets to prevent problems in the future.
A few examples of the crucial role of G20 include:
- Quick deployment of emergency funding during the 2008 global financial crisis
- Its role in the ratification of the Trade Facilitation Agreement
- G20 driven reforms to the international tax system
- In recent times, the ambit of issues under discussion has been expanded to include climate change, agriculture, health, education, water etc.
What are the challenges associated with G20 Grouping?
The major criticisms include:
- Informal structureof G20
- Influences decision-making of smaller countries
- Not able to address challenges within member nations
- No Enforcement mechanism
- Under-representation of the African continent: Except for South Africa, none of the African nations is a member of the G20.
- Not legally binding
What can be done to revive the G20 Grouping?
- Formalization of G20
- Focus more on domestic commitments
- Make it more representative