G20 and Global Governance
Introduction
Established in 1999 in response to global economic crises, the G20 holds annual summits involving member nations' top leaders and officials. Various countries, international organizations, and NGOs are invited to attend, some permanently. It is a part of post-World War II efforts to coordinate economic policies internationally alongside institutions like the IMF, World Bank, and the WTO.
India's inaugural G20 presidency is a significant step in its global leadership. With a diverse economy, technological strength, and sustainable development commitment, India offers distinctive insights. The presidency prioritizes inclusive growth, digital innovation, climate resilience, and global health equity. India uses its role to foster global well-being, embodying the 'World is One Family' ethos.
Impact of g20 on global governance
The G20 can strengthen global governance by fostering cooperation and consensus among the world's major economies. Addressing pressing global challenges, such as economic stability, climate change, and health crises, can set a precedent for effective international collaboration and play a central role in shaping global policies and responses.
1) Economic Strengthening and Coordination
As India assumed the G20 Presidency amidst a complex geopolitical and economically significant backdrop, it seized an opportunity to share its invaluable insights on concerns that encompass escalating debt levels, persistent inflation, currency devaluation, food insecurity, and the growing impact of severe weather events due to climate change. India also highlighted championing structural reforms, addressing tax evasion, combating corruption, countering terrorism funding, reducing remittance costs, and improving access to essential pharmaceuticals. In the past year, India successfully articulated the connections between the global economy and terrorist financing. The country hosted three conferences at the Interpol, UN, and No Money for Terror Conference levels, where discussions focused on the challenges of combating terrorism financing and its propagation through emerging technologies. Additionally, New Delhi is actively working to harness the progress made in developing India's digital welfare state, including initiatives like the Aadhar card and United Payments Interface, to establish a multilateral funding body within the G20 framework to facilitate digital public infrastructure (DPI).
2) Trade
India's G20 Presidency is strengthening trade ties and drawing investments, focusing on infrastructure development. Key priorities involve expediting free trade agreement talks, improving the business environment, fostering modern infrastructure, and capitalizing on India's skilled workforce and expanding population. India's growing middle-income demographic makes it an attractive destination for global companies seeking to diversify supply chains and invest. Improved infrastructure, a favorable business environment, a skilled labor force, and a burgeoning middle-class consumer base contribute to its appeal for investments and high-quality imports. During the G20 summit, nations like Washington, Saudi Arabia, the EU, and the UAE signed an agreement to explore a railway and port project, boosting trade between Europe and India. Experts have recommended expediting FTA negotiations with the UK and EU for improved market access and investment facilitation.
3) Health crisis management
India's G20 Presidency prioritizes health in three areas: preventing health emergencies, boosting pharmaceutical cooperation, and advancing digital health solutions. India showcased its achievements in digital health, including the Ayushman Bharat Digital Health Mission during the COVID-19 pandemic; G20 nations supported each other by ensuring access to medical resources, with India playing a pivotal role. Additionally, G20 countries agreed to suspend debt payments for the world's poorest nations, offering significant relief.
4) Defence
Russia's Ukraine attack and China's assertiveness created diplomatic tensions among powerful G20 nations. Amid discussions about issues stemming from the war, the focus was on mitigating fallout rather than geopolitical debates. With ties to Moscow and the U.S., India seeks to bridge gaps between Western sanctions and the Global South. Additionally, during the G20, leaders addressed changing geopolitics and military partnerships. Modi-Biden praised India's defense progress, highlighted the Quad, and discussed semiconductor supply chains. Modi-Macron reaffirmed India-France defense collaboration and acquisitions.
5) Multilateralism
The global arena currently lacks a common goal, marked by political tensions between Russia and the West and the potential for a US-China military conflict. As the 2023 G20 chair, India faces the challenge of deftly managing these power struggles and showcasing its diplomatic skills. India employs a multilateral approach involving institutions like the Quad and G7 while strengthening bonds with the Global South. In January 2023, New Delhi hosted the Voice of Global South Summit, bringing together 124 non-G20 countries ahead of the G20 Leaders' Summit. India's proposal to grant the African Union permanent G20 membership, accepted by member nations, enhances its diplomatic influence in Africa, a region sought by major global powers. It is crucial as many pressing global issues disproportionately affect some of the world's poorest nations, many of which are in Africa, strengthening India's efforts to bolster global governance and international relationships.
Criticism and challenges
1. Power Imbalance: G20 comprises both developed and developing nations; hence, it encounters difficulties reconciling its members' diverse interests and priorities. Powerful, politically, economically, and culturally developed nations can dominate discussions, potentially exclusive to developing countries.
2. Polarity in Interests: The diverse interests and disagreements among member nations make it challenging to establish common solutions. This divergence in interests often leads to a lack of coordination between global governance structures and various institutions, highlighting the need to address this issue.
3. Inequitable Resource Distribution: Developed nations possess significantly more resources compared to their developing counterparts. Consequently, it becomes arduous for developing countries to implement global initiatives fully.
4. Global Critics: Ongoing global issues, like the Russia-Ukraine war, have led to some non-Western countries refusing to include Russia in international forums like the G20. These countries view the conflict as primarily a "European war" and seek to contest the Western version of events that precipitated the conflict.
How to overcome these challenges
1. Dialogue and Consensus: G20 members must actively engage in open and constructive dialogue to foster consensus on various global issues. It requires robust communication and a willingness to compromise.
2. Multilateral Cooperation: G20 nations should encourage collaborative efforts on common challenges like climate change, economic stability, public health, and security. Supporting and strengthening international organizations such as the United Nations, World Trade Organization, and World Health Organization can enhance multilateral cooperation.
3. Addressing Economic Disparities: Collaboration on policies to reduce economic disparities among member countries is essential. This collaboration can encompass promoting fair trade, investment in infrastructure, and establishing social safety nets to alleviate economic inequalities.
Conclusion
In conclusion, the G20's role in global governance is pivotal, yet it faces challenges like power imbalances and differing interests. To move forward, active dialogue, multilateral cooperation, and a focus on addressing economic disparities are essential. The G20 must work collectively to foster consensus, strengthen international organizations, and promote equitable policies, ensuring a more balanced and harmonious approach to global development.
References
https://www.econstor.eu/bitstream/10419/196320/1/GEG-WP-059.pdf
https://politicsforindia.com/indias-g20-presidency-challenges-and-opportunities/
Written by Aastha Shukla | Proofread by Yasmin Uzykanova
