G20 summit: What’s at stake
- November 15, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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G20 summit: What’s at stake:
Subject: Polity
Context:
- Heads of state and governments belonging to 20 of the world’s major advanced and emerging economies will commence a two-day summit meeting in Bali, Indonesia.
What’s on the agenda for the 2022 summit:
- The Bali summit will have three key priorities:
- Global Health Architecture: This involves deliberations towards strengthening global health resilience and making the global health system more inclusive, equitable, and responsive to crises.
- Digital Transformation: Deliberations here have centered on achieving the full potential of rapid digitalisation of the global economy by creating a new landscape of cooperation among nations.
- 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 focussed on finding a platform for such investments.
- Since the October 2021 summit in Rome, prospects of the global economy have worsened.
- A recent report of the International Monetary Fund on G20 countries shows, most of the G20 constituent countries have suffered significant output losses since the start of the Covid-19 pandemic. India, for instance, would have lost almost 14 per cent of its total output, the highest loss among all G20 countries.
What is G20 Summit:
- G-20 was a group of finance ministers and central bank governors from 19 individual countries and the European Union.
- It was established in 1999 and was elevated to a forum of Heads of Government in 2008 to effectively respond to the global financial crisis of 2008.
- G-20 is a forum, not a legislative body and its agreements and decisions have no legal impact, but they do influence countries’ policies and global cooperation..
- The G20 membership accounts for
- Two-thirds of the world’s population,
- 85% of global gross domestic product,
- 80% of global investment
- 75% of global trade.
- Contribute 79% of the world carbon emissions
- G20 does not have any permanent secretariat or headquarters.
- The G20 Summit is formally known as the “Summit on Financial Markets and the World Economy”.
How G20 works:
- Since the G20 has no permanent secretariat. The agenda and work are coordinated by representatives of the G20 countries, known as ‘Sherpas’.
- The presidency of the G20 rotates every year among members, and the country holding the presidency, together with the previous and next presidency-holder, forms the ‘Troika’.
- Troika ensures continuity of the G20 agenda.
- During India’s presidency, India, Indonesia and Brazil will form the troika.