ANN NEWS DESK
The Group of Twenty (G20) comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom and United States) and the European Union. The G20 members represent around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population
India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023.
Inception of G20
The G20 was founded in 1999 after the Asian financial crisis as a forum for the Finance Ministers and Central Bank Governors to discuss global economic and financial issues.
Elevation to Leader’s Level
The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for international economic cooperation”.
The G20 Summit is held annually, under the leadership of a rotating Presidency. The G20 initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter-alia include trade, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption.
How G20 Works
- The G20 Presidency steers the G20 agenda for one year and hosts the Summit. The G20 consists of two parallel tracks: the Finance Track and the Sherpa Track. Finance Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the Sherpa Track after Finance Track.
- The G20 process from the Sherpa side is coordinated by the Sherpas of member countries, who are personal emissaries of the Leaders. Finance Track is led by Finance Ministers and Central Bank Governors of the member countries. Within the two tracks, there are thematically oriented working groups in which representatives from the relevant ministries of the members as well as from invited/guest countries and various international organisations participate.
The Finance Track is mainly led by the Ministry of Finance. These working groups meet regularly throughout the term of each Presidency. The Sherpas oversee negotiations over the course of the year, discussing agenda items for the Summit and coordinating the substantive work of the G20.
- In addition, there are Engagement Groups which bring together civil societies, parliamentarians, think tanks, women, youth, labour, businesses and researchers of the G20 countries.
- The Group does not have a permanent secretariat. The Presidency is supported by the Troika – previous, current and incoming Presidency. During India’s Presidency, the troika will comprise Indonesia, India and Brazil, respectively.
What is the G20?
The G20 is a forum of the twenty largest economies in the world that meets regularly to discuss the most pressing issues facing the global economy.
Together, the G20 accounts for more than 80% of world GDP, 75% of global trade and 60% of the population of the planet. The current members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States, plus the European Union.
What does the G20 discuss?
The G20 started in 1999, following the Asian financial crisis, as a forum for finance ministers and central bank governors from the major developed and emerging economies to discuss global financial issues.
Amid the global financial crisis in 2008, it grew into the leaders’ summit, a place where presidents and prime ministers could get together for two days to try to solve the world’s economic problems.
Successive meetings of G20 leaders were held in Washington DC in 2008, London in early 2009 and Pittsburgh in late 2009, and have since become annual fixtures.
In the run-up to summits, senior officials known as “sherpas” thrash out the issues for discussion, with the aim of getting G20 members to reach agreement at the summit. Like sherpas in the Himalayas, they help guide their leaders through often difficult terrain, and do the diplomatic legwork.
There are also meetings of finance ministers and central bank governors, trade representatives and anti-corruption working groups.