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May 25, 2024

GROUP OF 20
The Group of
Twenty (G20) is
the premier forum
for international
economic
cooperation. It
plays an important
role in shaping and
strengthening
global architecture
and governance on
all major
international
economic issues.
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May 25, 2024

What is G20?

• The G20 is an informal group of 19 countries and the

European Union, with representatives of the
International Monetary Fund and the World Bank.

• The G20 membership comprises a mix of the world’s

largest advanced and emerging economies, Together,
the G20 members represent more than 80% of world
GDP, 75% of international trade and 60% of the world
population.
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May 25, 2024

How did G20 come into Existence?

• 1997-1999 ASIAN Financial Crisis: This was a ministerial-
level forum which emerged after G7 invited both developed and
developing economies. The finance ministers and central bank
governors began meeting in 1999.

• Amid 2008 Financial Crisis the world saw the need for a new
consensus building at the highest political level. It was decided
that the G20 leaders would begin meeting once annually.

• To help prepare these summits, the G20 finance ministers and

central bank governors continue to meet on their own twice a
year. They meet at the same time as the International Monetary
Fund and The World Bank.
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How G20 Works?

May 25, 2024

The work of G20 is divided into two tracks:

▫ The finance track comprises all meetings with G20 finance

ministers and central bank governors and their deputies.
Meeting several times throughout the year they focus on
monetary and fiscal issues, financial regulations, etc.

▫ The Sherpa track focuses on broader issues such as political

engagement, anti-corruption, development, energy, etc.

- Each G20 country is represented by its Sherpa; who plans, guides,

implements, etc. on behalf of the leader of their respective
country. (Indian Sherpa, at the G20 in Argentina, 2018 was Shri
Shaktikanta Das)
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May 25, 2024

Who are the Members of G20?

• The members of the G20 are
Argentina, Australia, Brazil,
Canada, China, France,
Germany, India, Indonesia,
Italy, Japan, Republic of Korea,
Mexico, Russia, Saudi Arabia,
South Africa, Turkey, the
United Kingdom, the United
States, and the European
Union.

• Spain as a permanent, non-

member invitee, also attends
leader summits.
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May 25, 2024

What is the Structure and Functioning of G20?

• The G20 Presidency rotates annually according

to a system that ensures a regional balance over
time.

• For the selection of presidency, the 19 countries

are divided into 5 groups, each having no more
than 4 countries. The presidency rotates
between each group. Every year the G20 selects
a country from another group to be president.
India is in Group 2 which also has Russia, South
Africa, and Turkey.
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May 25, 2024

• The G20 does not have a permanent secretariat

or Headquarters. Instead, the G20 president is
responsible for bringing together the G20 agenda
in consultation with other members and in
response to developments in the global economy.

• TROIKA: Every year when a new country takes

on the presidency, it works hand in hand with the
previous presidency and the next presidency and
this is collectively known as TROIKA. This
ensures continuity and consistency of the group’s
agenda.
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May 25, 2024

What about the Cooperation

•The Financial Stability Board (FSB).
with and within G20? The FSB, which was established by G20
leaders following the onset of the global
financial crisis,
• In Toronto in 2010, leaders
•The International Labour Organization
declared it to be the premier (ILO).
forum for global economic co-
•The International Monetary Fund
operation. (IMF).
• The work of G20 members is •The Organisation for Economic Co-
supported by several operation and Development (OECD)

international organizations that •United Nations (UN)

provide policy advice.
•World Bank
These organizations include:
•The World Trade Organization (WTO)
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May 25, 2024

• The G20 also regularly engages with non-government

sectors. Engagement groups from business (B20), civil
society \(C20), labour (L20), think tanks (T20) and
youth (Y20) are holding major events during the year,
the outcomes of which will contribute to the
deliberations of G20 leaders.
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May 25, 2024

GOVERNANCE STRUCTURE OF
THE G20, 2020
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May 25, 2024

What Type of Issues are

Addressed by G20?
• The G20 focuses on a broad agenda of issues of global importance, although, issues
pertaining to the global economy dominate the agenda, additional items have become
more important in recent years, like:

▫ Financial markets
▫ Tax and fiscal policy
▫ Trade
▫ Agriculture
▫ Employment
▫ Energy
▫ Fight against corruption
▫ Advancement of women in job market
▫ 2030 agenda for Sustainable development
▫ Climate Change
▫ Global Health
▫ Anti-terrorism
▫ Inclusive entrepreneurship
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May 25, 2024

What are India's Priorities in

G20 Summits?

• Checking tax evasion to fight corruption

• Choking terror funds
• Cutting the cost of remittances
• Market access for key drugs
• Reforms in the World Trade Organisation to
improve its functioning
• “Full implementation” of the Paris Agreement
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May 25, 2024

What are the Challenges Faced by G20?

• No Enforcement mechanism: The G20’s toolkit

ranges from simple exchanges of information and best
practices to agreeing common, measurable targets, to
coordinated action. None of this is achieved without
consensus, nor is it enforceable, except for the
incentive of peer review and public accountability.
• Not legally binding: the decisions are based on
discussions and consensus which culminates in the
form of declarations. These declarations are not legally
binding. It’s just an advisory or consultative group of
20 members.
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May 25, 2024

Polarisation of Interests:
Russian and Ukrainian Presidents are invited to the G20
Summit to be held in November, 2022.
The U.S. has already demanded to not invite Russian
President, or U.S. and European countries would
boycott his address.

• China’s strategic rise, NATO’s expansion and Russia’s

territorial aggression in Georgia and Crimea and now
Russia Ukraine Conflict in 2022 changed global priorities.

• Globalisation is no longer a cool word, and multilateral

organizations have a credibility crisis as countries around
the world pick being ‘G-zero’ (a term coined by political
commentator Ian Bremmer to denote ‘Every Nation for
Itself’) over the G-7, G-20, BRICS,
P-5 (UNSC Permanent Members) and others.
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May 25, 2024

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