DELHI PUBLIC SCHOOL, BULANDSHAHR

Session: (2024-2025)
Subject: Economics
Class: X Revision Notes
Topic: G-20
On the number of its members, its name is termed as the G-20 i.e. the group of twenties. G20, or the Group of
20, is an informal group of 20 major economies that meets annually to discuss global economic and financial
issues. It is an important forum for cooperation and coordination among the world’s major economies. India
believes that the G20 can play a key role in addressing global challenges such as climate change, terrorism,
and poverty.
When the Asian Financial Crisis of 1997-1998 ended, it was acknowledged that the participation of major
emerging market countries was necessary for a discussion on the international financial system. Thus, G-20
was founded in 1999.The purpose of establishing G-20 is to create an atmosphere that supports equitable
global growth and development. They bring together the most powerful economies in the world, both
developed and emerging, to talk about global financial and economic stability.
G-20 serves as a platform for Finance Ministers and Central Bank Governors to discuss global economic and
financial issues. The finance ministers and central bank governors of the member countries along with the
European Union started holding dialogues concerning worldwide economic and financial issues.It was
upgraded to the level of Head of State/Government due to the global economic and financial crisis of
2007-2008.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.
The first G-20 Leaders’ Summit was held in November 2008 in Washington, D.C. The summit was
attended by the heads of the state of the member countries.The summit meetings were held semi-annually
until 2010 and annually from 2011 onwards.
The G-20 is a forum comprising nineteen countries with some of the world’s largest economies, as well
as the European Union (EU) and, as of 2023, the African Union (AU). The countries are Argentina,
Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi
Arabia, South Africa, South Korea, Turkey, the United Kingdom (UK), and the United States. The G-20
nations collectively account for approximately 85% of the world’s GDP, around two-thirds of the
global population, and over 75% of global trade.

The major intention of the G-20 is to provide joint efforts to ensure financial stability and economic growth
and development, especially in developing and industrialized regions. This international forum engages
major economies’ finance ministers and central bank governors.India has used the G20 to promote its
economic interests, such as securing market access for its goods and services. India’s presidency of the G20
in 2023 is an opportunity for India to play a leading role in shaping the global economic agenda.

During the pandemic, the major economies of the G-20 group decided to suspend the debt payments that
were supposed to be made by the world’s poorest countries. This gesture of humanitarian essence offered
billions of dollars of relief to developing nations.
The G-20 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. This rotation concept was formed at the 2010
summit held in South Korea.
The G-20 does not have a permanent secretariat or Headquarters. Instead, the G-20 president is
responsible for bringing together the G-20 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.
G-20 is not a legal authority to implement decisions. They discuss the issues and advocate implementing
steps to address the situation. While making a decision, member states gave considerable weight to the
discussion held in summits.
Note: The first G-20 summit was held in 2008 in Washington DC, USA.

How G-20 Works?

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 G-20 in Argentina, 2018 was Shri Shaktikanta
Das)

What Type of Issues are Addressed by G20?

Recently G20 summits started focusing not only on macro economy and trade; but also on a wide range of
global issues which have an immense impact on the global economy since globalization started progressing
and various issues became more intricately intertwined. Those issues included overall development, climate
change and energy, health, counter-terrorism, as well as migration and refugees.The G20 has sought to
realize an inclusive and sustainable world through its contributions towards resolving these global issues.
The G-20 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:
o Financial Markets
o Tax and Fiscal Policy
o Trade
o Agriculture
o Employment
o Energy
o Fight against corruption
 o Advancement of women in job market
o 2030 Agenda for Sustainable Development
o Climate Change
o Global Health
o Anti-terrorism
o Inclusive Entrepreneurship

G-20 Summit 2023: India

G20 Summit 2023 is a significant opportunity for the India to contribute to global discussions on pressing global
issues. India’s G20 logo juxtaposes planet Earth with the lotus, India’s national flower and the theme is
‘Vasudhaiva Kutumbakam’ or ‘One Earth-One Family-One Future.’India’s G20 Presidency represents a
significant milestone in its journey towards a sustainable and inclusive future.

India’s G20 logo combines the lotus, India’s national flower, with the Earth, symbolizing harmony with
nature and a pro-planet approach to life.The logo’s colours reflect India’s national flag, representing the
values of saffron, white, green, and blue.

With the theme of “One Earth, One Family, One Future” or “Vasudhaiva Kutumba-Kam,” India aims to unite the
world towards a common goal and a better future, emphasizing the importance of global cooperation.The G20
Themereflects India’s vision to create a world where there is unity and equality, transcending distinctions
between first and third worlds.

The theme of the G20 Presidency emphasizes LiFE (Lifestyle for Environment), advocating for
environmentally sustainable choices in individual lifestyles and national development.

India currently assumes the G20 presidency from December 01, 2022, to November 30, 2023. A summit of
this size will be held for the first time in the nation in New Delhi on September 9 and 10, 2023. The 18th
Summit will focus on the policy matters between its members to achieve global economic and sustainable
growth. The G20 Summit convenes on an annual basis, under the leadership of a rotating Presidency. India
assumed the presidency of the G20 grouping from Indonesia, on December 1, 2022, and will hold the post
for a year. India will hand over the Presidency to Brazil for a year and Brazil will further hand it over to
South Africa. This offers a unique opportunity for India to contribute to the global agenda on pressing issues
of international importance.

The G-20 Presidency provides an opportunity for India to assume the role of a leader representing the Global
South and advocate for their interests. The G-20 Presidency coincides with the start of “AmritKaal,” a 25-
year period from India’s 75th independence anniversary to its centenary, aiming for a futuristic, inclusive,
and prosperous society.The approach is centred around human well-being and development, focusing on a
people-centric approach.

Given the pressing issues of global warming, the COVID-19 pandemic, and conflicts like the one in Ukraine,
the G20 has gained increasing importance as a platform for addressing these urgent challenges.

Agenda for G-20 Summit 2023

The focus of the 2023 G-20 Summit in New Delhi revolves around six key agenda priorities:
• Green development, Climate finance and LiFE: Addressing environmental challenges through sustainable
development and climate finance strategies, such as the utilization of Low-carbon Technologies for Fighting
Epidemics (LiFE).
• Accelerated, inclusive and resilient growth: Promoting economic growth that is inclusive and benefits all
sectors of society, while also building resilience to withstand economic shocks.
• Accelerating progress on SDGs: Prioritizing the hastening of advancements in attaining the Sustainable
Development Goals (SDGs).
• Technological transformation and digital public infrastructure: Exploring the influence of technology and
emphasizing the significance of a resilient digital public framework.
• Multilateral institutions for the 21st Century: Modernizing international institutions to address the changing
needs of the 21st century through reform and innovative measures.
• Women-led development: Promoting the empowerment of women in every aspect of development,
acknowledging their priceless contributions to both society and the economy.
India can also work with other G-20 countries to promote the implementation of global financial
regulationsto ensure financial stability and prevent future financial crises. Furthermore, India’s growing
renewable energy sector can also contribute to global economic growth and sustainability. India has set
ambitious targets to increase the share of renewable energy in its energy mix, and its experience in this area
can be useful to other G20 countries as they seek to transition to a more sustainable energy system.
India has launched several initiatives to promote renewable energy, such as the International Solar Alliance,
which aims to mobilize $1 trillion of investment in solar energy by 2030, and the National Clean Energy
Fund, which finances clean energy projects. By sharing its experiences with other G-20 countries, India can
help accelerate the transition to a more sustainable energy system and promote global environmental
sustainability.
Also Read,
https://forumias.com/blog/g20-and-its-significance/