Global Dynamics: Exploring the G20's Influence on Poverty, Inequality, and Climate Change
Preface
As president of the G20, India was able to secure a unique opportunity to bring together the world's leading economies to address these critical challenges. This article will examine India's G20 policies on climate change, inequality, and women empowerment, and will assess their potential impact on these key global issues.
Introductions
The Indian G20 leadership has emphasised diversity in negotiations, involving 11 Engagement Groups to engage various societal groups, including women, academia, civil society, students, and young people. This "bottom-up" strategy amplifies the voices of Indian citizens worldwide. India's economic endurance is evident in its 7.2% growth rate for the fiscal year 2022–23. The "China plus one" strategy by foreign businesses will benefit India by diversifying output away from China, leading to higher investments and employment. India's rising international profile will benefit various societal groups through participation in free trade agreements and economic alliances with countries like the UAE, Australia, and the UK. India's geopolitical and economic prominence within the G20 can attract investments that create jobs and eradicate poverty. India's role as the "Voice of the Global South" offers a chance to promote measures prioritising developing and emerging economies' welfare and development.
G20 India put forth six agenda priorities for the G20 dialogue in 2023:
Green Development, Climate Finance & LiFE
Accelerated, Inclusive & Resilient Growth
Accelerating progress on SDGs
Technological Transformation & Digital Public Infrastructure
Multilateral Institutions for the 21st Century
Women-led development
About G20 ( Group of 20)
Along with the European Union, the Group of 20 (G20) is made up of Argentina, Australia, Brazil, Canada, China, France, Germany, Greece, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, and the United States. More than 80% of the world's GDP, 75% of the world's commerce, and 60% of the world's population are now represented by G20 members.
Origin and Evolution
The G20, established in 1999 to discuss international economic and financial issues, has evolved from a forum for Finance Ministers and Central Bank Governors to a premier forum for international economic cooperation, now focusing on trade, climate change, sustainable development, and anti-corruption.
Global Growth
The G20 promotes equitable global growth and development by ensuring financial stability, encouraging growth, and managing crises. As emerging economies integrate more fully into the global economy, the G20 can achieve its goal of robust, sustainable, balanced, and inclusive growth. The 2030 Agenda for Sustainable Development provides a transformative global development plan, and the G20 is well-positioned to help implement and maximize its collective effect.
Climate change
India's G20 Summit leadership provided a venue for showcasing effective strategies and cutting-edge techniques for reaching net-zero emissions. This sign of success improves India's reputation, putting it in a favorable position for discussions on technology transfer, capacity development, and long-term investments in renewable energy projects.
Along with a focus on women's food security and the financial inclusion of Micro, Small, and Medium Enterprises (MSMEs), which are particularly sensitive to climate threats, Gender Inclusive Climate Action has been included in the declaration. India formally welcomed the African Union (AU) into the G20 group, strengthening the views of poor nations, who have historically struggled to be heard at global forums, notably during climate discussions.
The G20 Summit saw the formation of the Global Biofuel Alliance (GBA), an India-led initiative. To encourage the use of biofuels, it seeks to ally with governments, international organizations, and businesses. The GBA has already received the backing or agreement of 19 nations and 12 international organizations. The Global Biofuels Alliance (GBA) is significant as it will facilitate technology transfer, mobilize international climate funds, accelerate the compressed biogas sector, and promote the adoption of Flex Fuel Vehicles. It will also contribute to India's reduction in emissions and crude oil import bill. The GBA will also promote biofuel exports, increasing India’s share in biofuel production and leading to greater energy independence. Fuel sector investments will also create employment opportunities and improve farmers' financial status.
The decision to reform the processes of Multilateral Development Banks (MDBs) to mobilize climate finance for developing countries at G20, a form of economic importance, shows great promise.
The Resource Efficiency and Circular Economy Industry Coalition (RECEIC), which aims to advance resource efficiency and circular economy practices throughout the world's industries, was established as part of the G20 Declaration.
The G20 leadership summit saw the establishment of the Green Hydrogen Innovation Centre for “promoting the adoption and advancement of green hydrogen as a key driver in the transition to a low-carbon, renewable energy economy” steered by the International Solar Alliance (ISA), launched by India and France in 2015.
Poverty
Global challenges such as poverty and inequality, climate change, pandemics, and conflict disproportionately affect women and children and the most vulnerable. India's G20 poverty policy focuses on promoting inclusive growth and reducing poverty. India calls for a global commitment to invest in social protection, education, and health. The country is also committed to working with other G20 countries to tackle the root causes of poverty, such as gender discrimination and social exclusion.
India argued that the 21st century also requires an international development financing system that is fit for purpose, including the scale and depth of the needs of developing countries, especially the poorest and most vulnerable to disruption. The international financial system must provide more financial resources to help developing countries fight poverty, respond to global challenges, and maximize development impact.
India appreciated the progress made by the Resilience and Sustainability Trust (RST) and the Poverty Reduction and Growth Trust (PRGT). It called for more voluntary support and loan commitments to the PRGT.
The PRGT is the IMF's main vehicle for providing concessional financing to low-income countries (LICs). PRGT loans support various economic and social development programs, including poverty reduction, infrastructure investment, and education. To be eligible for PRGT loans, a country must have a per capita income below a certain threshold. The RST was established in 2021 to help low-income and vulnerable middle-income countries build resilience to external shocks and ensure sustainable growth. RST loans support reforms to address longer-term structural challenges, such as climate change and pandemic preparedness. To be eligible for RST loans, a country must have a per capita income below a certain threshold and face a risk to its balance of payments stability.
The RST and PRGT are important in supporting the development and resilience of LICs and vulnerable MICs. They provide affordable financing to help these countries invest in their people and infrastructure and to build their resilience to shocks.
The country stated that it looks forward to the IMF's preliminary analysis of the options to put the PRGT on a sustainable basis to meet the growing needs of low-income countries in the coming years.
Gender Inequalities
The Indian government held a G20 Ministerial Conference on Women's Empowerment in Gandhinagar, Gujarat, from August 2nd to 4th, 2023, aiming to accelerate progress towards gender equality and women's empowerment, as part of the Sustainable Development Goal 5 aimed at achieving gender equality.
The G20 New Delhi Leaders’ Declaration for 2023 focuses on:
Enhancing Economic and Social Empowerment: The nation aims to increase women's participation in decision-making, tackle global issues, and boost global GDP. They aim to achieve the Brisbane Goal by ensuring equal access to education, encouraging women's workforce engagement, and investing in social safety and care infrastructure. They also aim to secure workplaces and eliminate gender-based violence.
Bridging the Gender Digital Divide: India seeks to promote gender equality in digital technology by addressing gender norms, promoting regulatory policies for women, reducing digitalization risks, developing an inclusive digital economy for women-led businesses, and supporting initiatives for women's livelihoods and financial security.
Driving Gender-Inclusive Climate Action: Climate action must prioritize gender equality to address the disparities in impacts of climate change, biodiversity loss, desertification, and pollution on women and girls and support gender-responsive and environment-resilient solutions like WASH solutions. WASH solutions improve access to safe water, adequate sanitation, and hygiene (WASH) for all people, regardless of their background or circumstances. WASH solutions protect public health, promote human well-being, and achieve sustainable development. The government has launched the Swachh Bharat Mission (Clean India Mission) to improve sanitation access and hygiene practices in India. The mission has built over 110 million toilets in rural areas, increasing toilet coverage to over 99%.
Key Takeaways
India has made significant progress in its energy transition efforts over the past decade, showcasing successful models for net-zero emissions at the G20 Summit. The G20 Declaration included Gender Inclusive Climate Action, focusing on women's food security and financial inclusion of MSMEs. India's voluntary action plan aims to double energy efficiency by 2030, aligning with the summit's objectives. India's presence at the G20 Leaders' Summit has made it a green energy and sustainability initiative leader.
India's G20 policies aim to promote inclusive growth and reduce poverty through social protection, education, and healthcare. Addressing root causes like gender discrimination and social exclusion, India believes an international development finance system should provide more financing for developing countries. India appreciates progress under the RST and awaits IMF's preliminary analysis of sustainable options for the PRGT.
India's G20 Ministerial Conference on Women's Empowerment aimed to accelerate gender equality and empowerment. The New Delhi Leaders' Declaration for 2023 focused on economic and social empowerment, bridging the digital divide, driving gender-inclusive climate action, and securing women's food security, nutrition, and well-being. India is committed to achieving the Brisbane Goal and investing in social protection and affordable care infrastructure. The Brisbane Goals are a set of commitments made by the G20 leaders at the 2014 Brisbane Summit in Australia to promote growth, jobs, and resilience in the global economy. With a focus on commitments for growth and jobs like the "25x25" commitment to close the gender participation gap by 25% by 2025 and the National Growth Strategies (NGS) that aimed to boost the global GDP by 2% above the baseline by 2018, the Australian G20 Presidency made a significant contribution to the G20 agenda.
Conclusion
India's 2023 G20 presidency was a significant opportunity for the country to lead global governance, focusing on sustainable development, climate change, and global health. India set the agenda and secured commitments, such as phasing out coal-fired power plants by 2040 and responding to the COVID-19 pandemic. India's G20 policy is expected to impact global issues positively.
Reference
https://www.g20.org/content/dam/gtwenty/gtwenty_new/document/G20-New-Delhi-Leaders-Declaration.pdf
https://www.orfonline.org/research/tackling-multidimensional-gender-inequality-in-g20-countries/
https://www.drishtiias.com/daily-updates/daily-news-editorials/biofuels-and-global-biofuels-alliance
Written by Ojaswini Rao Ayde | Proofread by Yasmin Uzykanova
