SIGNIFICANCE OF THE BALI G-20 SUMMIT
1. Context
Leaders of the G-20 nations will gather at Bali's Nusa Dua resort for the 17th summit of the world's most advanced economies. G-20 countries represent 85% of the global GDP, 75% of the global trade, and 60% of the world population.
2. G-20
The G-20 was formed in 1999 against the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular.
It aimed to secure global financial stability by involving middle-income countries.
3. Objectives
- Policy coordination between its members to achieve global economic stability, and sustainable growth.
- To promote financial regulations that reduce risks and prevent future financial crises, and to create a new international financial architecture.
- Policy coordination between its members to achieve global economic stability, and sustainable growth.
4. Agenda for the 2022 summit
The motto for this G-20 is Recover Together, Recover Stronger.
4.1 Global health Architecture:
This involves deliberations towards strengthening global health resilience and making the global health system more inclusive, equitable, and responsive to the crisis.
4.2 Digital Transformation: Deliberations here have centered on achieving the full potential of the rapid digitization of the global economy by creating a new landscape of cooperation among nations.
4.3 Sustainable Energy Transition: Under this rubric, the discussions have focussed on ways to accelerate the transition towards cleaner energy sources. In particular, since any such transition requires substantial investments, the efforts have been focused on finding a platform for such investments.
5. What makes this G-20 different from others?
For the world, this is the first G-20 since Russia began the war in Ukraine and the west imposed sanctions on Russia. Efforts will be made to build global consensus over issues that have divided the world.
For India, the importance of the summit of the world's most advanced economies is that it is India's turn to host the summit next Mr. Modi will receive a handover from the Indonesian President Joko Widodo after which India will assume the presidency on December 1.
6. Significance of G-20 for India
6.1 India's upcoming presidency:
India has been active in the G-20 processes in the Sherpas and Finance Track. India will hold the G-20 Presidency from 1 December 2022 to 30 November 2023. As the G-20 Presidency, India will be in a position to identify, highlight, develop and strengthen international support for priorities of vital importance to developing countries in diverse social and economic sectors.
6.2 Economic opportunities:
Hosting of the G-20 Presidency would also result in economic opportunities in different sectors such as tourism, hospitality, IT, and Civil aviation among others.
The sectors of significant importance would be ranging from energy, agriculture, trade, digital economy, health, and environment to employment, tourism, anti-corruption, and women empowerment, including the focus areas that impact the most vulnerable and disadvantaged.
7. Criticisms
The G-20 has been criticized for various reasons:
- Lack of transparency
- Encouraging trade agreements that strengthen large corporations
- Being slow to combat climate change, and
- Failing to address social inequality and global threats to democracy.
For Prelims & Mains
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For Prelims: G-20, the Motto for this G-20 is Recover Together, Recover Stronger, the UN, the IMF, ASEAN, and the African Union.
For Mains: 1. What is G-20? How Does it affect India's Economic Interests? Discuss.
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Source: The Hindu
