Significance of G – 20
- In about three months, India will assume for the first time the Group of 20 (G20) year-long presidency from December 1, 2022 to November 30, 2023, culminating with the G20 Summit in India in 2023.
- The significance of the G-20 grouping lies in the fact that G20 membership represents nearly 90% of the world’s GDP, 80% of global trade, and 67% of the planet’s population.
- This forum is an advisory body, the decisions taken in the grouping are not binding on the members but still the forum carries enormous political and economic influence.
- The representation of the United Nations, the World Bank, the International Monetary Fund, the World Trade Organization, the World Health Organization, and other multilateral institutions in it makes the G20 an important grouping.
Key Role in Global Financial System:
- Earlier the forum has played a huge role during the global financial crisis of 2008-09 and the Eurozone crisis of 2010.
- Major global players including USA EU, Russia, and also China have come together in this forum in defining global challenges and crafting their solutions.
What are the challenges?
- As the world is wittnessing the tussle of the super powers, the forum is faced with an existential crisis.
- This poses challenges to the presidency country, as we know it is India which is taking up the presidency is bound to face the challenges.
- The disastrous impact of the novel coronavirus pandemic, the war in Ukraine, India-China border tensions, EU/U.S.-Russia hostility are to be added to the list for making it more complicated.
- Four democracies on the path to becoming powerful economic players — Indonesia, India, Brazil, and South Africa — hold the presidency from December 2021 to November 2025.
- This offers a rare opportunity for synergy and solidarity to advance the interests of the developing world and to assert their combined leadership of the Global South.
Source The Hindu
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