The G20 Summit is an annual meeting of the world’s largest economies, including developed and developing nations, to discuss global economic issues, financial stability, climate change, and international trade.
For UPSC aspirants, grasping the significance of the G20 is essential for current affairs and topics related to international relations and economic development. Our G20 UPSC notes will guide you through the summit's structure, its relevance in the evolving geopolitical landscape, and key takeaways that could enhance your understanding and boost your exam preparation.
Revise these G20 notes to stay ahead in your UPSC prep!
Definition and Importance of G20
The G20, or Group of Twenty, is an international forum established in 1999 that brings together 19 of the world’s largest economies and the European Union. G20 countries collectively represent 85% of the global GDP and 75% of international trade, making it significant in the global political and economic landscape.
The G20 facilitates coordinated policy actions among the world's largest economies to promote global economic stability.
It enables member countries to jointly address inflation, recession, and unemployment by synchronizing monetary and fiscal policies.
The G20 gives a platform to developing economies like India, Brazil, and South Africa, enabling them to have a stronger voice in global decision-making.
The G20 has responded to various global challenges, including health crises like pandemics, energy crises, and natural disasters.
The G20 has increasingly prioritized discussions on sustainable development and climate change, promoting the adoption of clean energy, carbon reduction, and sustainable growth.
The G20 fosters global trade and investment discussions, ensuring economies cooperate to reduce trade barriers, enhance market access, and resolve trade disputes.
The G20 increasingly focuses on the digital economy, addressing cybersecurity, digital taxation, artificial intelligence (AI), and blockchain.
It addresses issues such as poverty eradication, access to education and healthcare, and reducing gender and income inequalities.
The G20 comprises 19 countries and the European Union, collectively representing a mix of developed and emerging economies. Below is a region-wise table of the G20 member countries:
Region
Nations
North & South America
Argentina, Brazil, Canada, Mexico, United States
Europe
France, Germany, Italy, Russia, Turkey, United Kingdom, EU
Asia
China, India, Indonesia, Japan, South Korea, Saudi Arabia
Africa
South Africa
Oceania
Australia
Mnemonic to Remember G20 Member Nations
GURU JI SITA AB SSC ME FCI
G - Germany S - Saudi Arabia S - South Korea F - France
U - UK I - Italy S - South Africa C - China
R - Russia T - Turkey C - Canada I - India
U - U.S.A A - Argentina M - Mexico
J - Japan A - Australia E - EU
I - Indonesia B - Brazil
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Two Parallel Tracks of G20
The G20 operates through two main tracks that address distinct but interconnected global issues: the Finance Track and the Sherpa Track. These tracks help streamline the complex discussions and negotiations during the G20 meetings.
Finance Track
This track is led by finance ministers and central bank governors from G20 member countries. Its primary focus is on global financial and economic stability. The Finance Track deals with:
Macroeconomic Policies
Financial Regulations
Tax Reforms
International Monetary Cooperation
Sherpa Track
This track is guided by Sherpas, who are personal representatives of the G20 leaders. The Sherpa Track covers broader non-financial issues that require multilateral cooperation. Key areas of focus include:
Global Health
Climate Change
Energy Transitions
Development Issues
Both tracks collaborate to ensure the G20 agenda addresses economic and developmental challenges, helping shape policies with a global impact.
Role of Troika: Previous, Current, and Incoming Presidencies
The G20 is guided by a rotating presidency, with the Troika system ensuring continuity. The Troika is composed of the previous, current, and incoming presidencies. It rotates in an alphabetical order each year. It plays a vital role in guiding the G20's agenda:
Ensuring Continuity: The Troika system helps maintain continuity in G20 initiatives, ensuring that significant issues remain on the agenda as the presidency changes each year.
Collaboration Between Presidencies: The previous, current, and incoming presidencies collaborate closely to ensure a smooth transition and consistency in the G20's priorities and discussions.
Agenda Management: The Troika helps to manage the G20 agenda by ensuring that long-term global issues, such as climate change and economic reforms, are addressed over multiple years.
Advisory Role: The Troika supports the current presidency, ensuring that any challenges in the organization or leadership are addressed with experience and future planning.
Flexible Leadership: This system allows flexibility and adaptability in leadership, as each country in the Troika plays a different role.
The G20 does not have a permanent secretariat or headquarters. This structural feature presents both challenges and opportunities for the forum.
Challenges:
Without a permanent secretariat, the G20 lacks institutional memory, making it difficult to maintain continuity in long-term projects or follow up on previous commitments.
A permanent body overseeing policy implementation must consistently apply agreements and action plans.
The G20's agenda and priorities are heavily influenced by the host country’s interests and geopolitical positioning.
Coordination between member countries relies heavily on the presidency, making it challenging to consistently align member states' diverse interests.
Opportunities
The G20 collaborates with established international organizations, such as the International Monetary Fund (IMF), World Bank, and the United Nations, to provide expertise and administrative support.
The G20 maintains a series of ministerial meetings and working groups throughout the year focusing on specific policy areas (e.g., finance, trade, health).
The G20's rotating presidency spreads the responsibility for organizing the summit across different nations each year.
The G20 relies on expert groups, think tanks, and academic institutions to offer recommendations and insights on global challenges.
India’s Presidency of G20: The 2023 Summit
Honorable Prime Minister NarendraModi declared, "India’s G20 presidency is not just about holding a chair; it’s about finding solutions to the most pressing issues of our time." The 2023 G20 Summit, held in New Delhi, became a pivotal platform for discussing transformative ideas, fostering sustainable development, and addressing the unique needs of developing nations.
India’s G20 presidency emerged as a beacon of hope and leadership. It invited countries to collaborate and tackle global challenges while reinforcing the belief that a united world is essential for a sustainable and prosperous future.
Theme: ‘One Earth, One Family, One Future’
The theme of India’s G20 presidency reflects the Indian philosophy of “Vasudhaiva Kutumbakam,” which translates to the world being one family.
Objective: It focuses on fostering global collaboration, sustainable development, and resilience to ensure a unified international approach to the challenges of the future.
Vision: Promoting harmony between people, planet, and prosperity through inclusive and sustainable solutions to global challenges.
Significant Outcomes from the 2023 G20 Summit
African Union as Permanent G20 Member: The African Union (AU) became a permanent member of the G20, marking a significant step towards inclusivity and representation of the Global South.
Global Biofuels Alliance: India launched a global alliance to promote biofuel production and consumption and foster the development of cleaner energy sources globally.
Climate Agreements: The G20 reaffirmed its commitment to meeting climate targets under the Paris Agreement, including agreements to enhance renewable energy capacity and phase out fossil fuel subsidies.
India-Middle East-Europe Economic Corridor: This initiative aims to enhance connectivity and trade between Asia, the Middle East, and Europe.
Technological Transformation: India’s presidency highlighted the role of digital public infrastructure, emphasizing digital inclusion, artificial intelligence (AI), and technological innovation to drive global development.
Women-led Development: Focused on empowering women across all sectors, promoting gender equality, and integrating women’s leadership in driving global economic recovery and sustainability.
The New Delhi Declaration, adopted during the 2023 G20 Summit, stands as a testament to the collective resolve of the world's largest economies to address pressing global challenges.
The Declaration emphasizes the interconnectedness of nations and the shared responsibility to pursue a future that prioritizes the welfare of all humanity. The document serves as both a roadmap and a call to action, encouraging nations to work together toward equitable solutions.
Key Takeaways from the New Delhi Declaration
Global Cooperation: The declaration called for strengthening multilateral institutions to effectively address global challenges and promote inclusiveness and cooperation across all regions.
Inclusive Growth: It emphasized the need for all countries, particularly developing nations, to have a say in global decision-making processes.
Ambitious Energy Goals: G20 members committed to tripling renewable energy capacity by 2030 to combat climate change and significantly reduce reliance on fossil fuels.
Sustainable Energy: The focus is increasing investments in solar, wind, and other renewable energy technologies, supporting global efforts to transition to cleaner energy.
Food Security Concerns: The declaration highlighted the urgent need to tackle global food insecurity and malnutrition, particularly in vulnerable regions like Africa and South Asia.
Action Plans: G20 members pledged to increase agricultural productivity, improve food distribution systems, and ensure that food supply chains are resilient to global shocks.
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Initiatives for Digital and Economic Cooperation in the 2023 G20 Summit
The 2023 G20 Summit saw the introduction of various initiatives aimed at regulating emerging technologies and promoting trade agreements that can boost economic growth. Here are the notable initiatives discussed during the summit:
Global Partnership for Financial Inclusion (GPFI)
The G20 leaders launched the Global Partnership for Financial Inclusion (GPFI), which promotes equitable access to financial services, particularly in developing nations.
The GPFI will facilitate collaboration among governments, financial institutions, and tech companies to develop innovative solutions for underserved populations.
For example, partnerships with fintech companies can create digital wallets that allow individuals in remote areas to access banking services.
Digital Public Infrastructure (DPI)
The initiative encourages countries to invest in digital public infrastructure, facilitating access to financial services.
This includes building platforms that enable secure digital identities, mobile payment systems, and interoperable banking services.
India's Unified Payments Interface (UPI) was highlighted as a successful model of digital public infrastructure that has significantly increased financial inclusion.
Cryptocurrency Regulation and Financial Stability
Leaders agreed that a regulatory framework for cryptocurrencies that balances innovation with risk management is necessary.
This includes monitoring stablecoins, Initial Coin Offerings (ICOs), and decentralized finance (DeFi) platforms to mitigate potential risks to the global financial system.
The summit emphasized the importance of international cooperation in regulating cryptocurrencies, focusing on cross-border transactions and anti-money laundering (AML) standards.
The summit acknowledged the efforts of countries like El Salvador, which has adopted Bitcoin as legal tender.
India-Mercosur Trade Agreements
The India-Mercosur Trade Agreement aims to strengthen economic ties between India and the South American trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay.
The agreement aims to reduce tariffs on goods and services, fostering increased trade flows and economic cooperation.
It also focuses on improving market access for both sides, benefiting sectors such as agriculture, pharmaceuticals, and textiles.
The summit highlighted successful case studies of existing trade partnerships, such as India’s growing trade relationship with Brazil.
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The insights gathered from the G20 Summit serve as invaluable G20 UPSC notes for aspirants preparing for their examinations. These notes encapsulate the key elements discussed at the summit and provide a solid foundation for tackling global economics, diplomacy, and policy-making questions in the UPSC exams.
For aspirants, revisiting and thoroughly understanding these notes is essential to grasp the nuances of global affairs and their implications on national and international levels.
Embrace the opportunity to learn from these significant discussions and prepare yourself for a successful journey through the UPSC examination process.
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