General Studies Paper 2 (International Relations)
Question:- 117. What is G-20? Briefly explain its mandate. What significance does it hold for India? Answer in 150 words.
Nov 17, 2022
Answer:-

INTRODUCTION:

The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigation, and sustainable development. The G20 membership comprises a mix of the world’s largest advanced and emerging economies, representing about two-thirds of the world’s population, 85% of global gross domestic product, 80% of global investment over 75% of global trade and 60% of world’s land area.

 

BODY PARAGRAPH-1:  MANDATE

The G-20 is a leading forum for global financial issues whose members include major developed and developing economies. Although not a legislative body, its discussions help shape financial policy within each of its member countries. Recent agenda items at G-20 meetings have included crypto currency, food security, and trade wars.

The work of G20 is divided into two tracks:

1.The finance track comprises all meetings with G20 finance ministers and central bank governors and their deputies – they focus on monetary and fiscal issues, financial regulations, etc.

2.The Sherpa track focuses on broader issues such as political engagement, anti-corruption, development, energy, etc.

 

BODY PARAGRAPH-2: SIGNIFICANCE

  1. 1.The first significance is on the economic front. Although India’s G20 presidency comes at a time when the world faces economic hardships and global recessionary trends, India is in the position to lead the change given the high percentage of economic share of G20 countries.
  2. 2.India’s aims of inclusive, equitable and sustainable growth, women’s empowerment, digital public infrastructure, and tech-enabled development, climate financing, global food security and energy security etc. can receive adequate support through an action-oriented approach.
  3. 3.Also, the global image of G20 has weakened for its inability to take a stand in the Russia-Ukraine war. As India takes on its presidency, it has the opportunity to iron out the differences and lead from the front. This comes both as an opportunity and as a challenge as India has to chalk out an agenda that has the unanimity of all the members.
  4. 4.Internal governance reform is the need of the hour and India can play a major role here by giving thrust to inclusiveness and unity. This will help in thrashing out a consensus that will go a long way in setting a pragmatic, substantive agenda for the forum.
  5. 5.Climate financing is another area that India has to work on with the affluent nations. The developed countries have to be prodded for transfer of clean technologies and renewable energies to medium and low-income countries.

 

CONCLUSION:

India maintains close relations with developed countries on the one hand, and at the same time understands and expresses the views of developing countries very well. The G-20 Presidency offers a unique opportunity for India to contribute to the global agenda on pressing issues of international importance.