G20 and India

Genesis

• The G20 was established in 1999 in the backdrop of the 1997-99 Asian Financial Crisis to bring together the finance ministers and Governors of the Central Banks of the major advanced and emerging economies to discuss key issues related to global economic stability and growth.
• Later, the world again faced the 2008 economic crisis. In response, it was raised to the Summit level (meeting of the Heads of State)to address the global financial and economic crisis. 
• Latest Summit: Rio de Janeiro, Brazil (2024)

Membership

• 19 countries + European Union+ African Union)
• Latest Entry: In 2023 (hosted by India), the African Union (AU) was accepted as a permanent member of the G20.
• G-20 has no permanent secretariat.

Objectives of G-20

1. Policy coordination between its members to achieve sustainable growth and global economic stability. 
2. Promote financial regulations that reduce risks & prevent future financial crises.
3. To create a new international financial architecture. 

• G-20 members together constitute
  • 85% of global GDP
  • 75% of global trade
  • 2/3rd of the global population
  • 84% of fossil fuel emissions
• Ensure Global Economic Growth and Stability: Owing to its size and strategic importance, the G20 plays an important role in setting the path for the future of global governance and economic growth.
• Address Global Crisis: Previous summits have addressed the 2008 financial crisis, the Iranian nuclear program, the COVID-19 pandemic and climate change.  
• Global Tax Reforms: International taxation has been a regular feature of G20 deliberation since the summit’s start in 2008. 
• Recast Bilateral Ties: Bilateral meetings on the summit’s sidelines have occasionally led to major international agreements. 
• Platform to deliberate on Climate Change: Since the member countries constitute 84% of fossil fuel emissions, the platform provides a great opportunity to deliberate on the challenge of climate change, which poses an existential crisis to the global ecosystem.

• Lack of Effective Power: The decisions of the G20 are not legally binding.
• Lack of Transparency: The G-20 decisions are made behind closed doors, making the organization’s work non-transparent and unaccountable.
• Lack of Accountability: The G20 is ‘No Charter and No Treaty Organization’ without any Permanent Secretariat, making it difficult to hold its members accountable for their actions and decisions.
• Inadequate Representation: Some critics argue that the G20 does not adequately represent the global community, as it excludes many small and developing countries that may be affected by the decisions made by the group. Additionally, G20 does not include enough representation from the private sector, civil society, and non-state actors.
• Contrasting Interests of the Member Countries: Partner countries have contrasting interests, such as the USA vs Russia, India vs China, etc.
• Lack of Enforcement: G-20 decisions are non-binding in nature, and G-20 doesn’t have a permanent secretariat, thus reducing the group’s effectiveness. 
• Limited Effectiveness: Some argue that the G20 has not lived up to its potential in terms of addressing global economic issues and achieving meaningful results.