G20, The Group of Twenty, or G20, is the premier forum for international cooperation on the most important aspects of the international economic and financial agenda. It brings together the world’s major advanced and emerging economies. The G20 comprises Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK and USA. The G20 Countries together represent around 90% of global GDP, 80% of global trade, and two-thirds of the world’s population
Evolution of G20
In December 1999, the Finance Ministers and Central Bank Governors of advanced and emerging countries of systemic importance met for the first time in Berlin, Germany, for an informal dialogue on key issues for global economic stability. Since then, Finance Ministers and Central Bank Governors have met annually. India hosted a meeting of G20 finance ministers and central bank governors in 2002. G20 was raised to the Summit level in 2008 to address the global financial and economic crisis of 2008.
Organizational Structure of G20, The G-20 operates without a permanent secretariat or staff. The chair rotates annually among the members and is selected from a different regional grouping of countries The chair is part of a revolving three-member management group of past, present, and future chairs referred to as the Troika.
The preparatory process for the G20 Summit is conducted through the established Sherpa and Finance tracks that prepare and follow up on the issues and commitments adopted at the Summits. The Sherpas’ Track focuses on non-economic and financial issues, such as development, anti-corruption, and food security, while addressing internal aspects such as procedural rules of the G20 process Sherpas carry out important planning, negotiation, and implementation tasks continuously.
The Finance Track focuses on economic and financial issues. The Sherpa and Finance tracks both rely on the technical and substantive work of a series of expert working groups additionally, the thematic agenda is developed through the organization of several Ministerial Meetings, such as the Joint Meeting of Finance and Development Ministers, and the Labour, Agriculture, and Tourism Ministerial meeting.
This article traces the development of the ‘G’ system and its evolution towards the Leaders’ G20, when it was successful in preventing a 1930s-type depression in 2008. Since then, it has begun the needed transition from global crisis responder to modern diplomacy’s steering committee.
A case study addresses some of the issues the G20 must resolve to succeed in this latter Endeavour. The fundamental issues faced today are the breathtaking speed and spread of contagion – financial contagion, climate change contagion, pandemic disease, transnational crime, and so on. No nation can deal with these alone, and in the multipolar world, the catalyst responding to the spread of global risk will be the G20
Begins with a brief history of the ‘G’ system and its evolution towards the Leaders’ G20, when in 2008. it was successful in preventing a 1930s-type depression. Since then, it has begun the needed transition from global crisis responder to modern diplomacy’s steering committee case study addresses some of the issues the G20 must resolve in order to succeed in this latter endeavor
Conditions precedent to the G20’s success as a global steering committee are to be found in its ability to respond to two challenges: first, can it improve the way globalization works for everyone whether they are at the G20 table or not? Second, can it limit the contagion that appears to be the inevitable consequence of the interdependence of nations?
The absence of the newly emerging economies at the table began to call into question the ability of the G7 Finance Ministers to perform the role of global economic steering committee which it had assumed. Accordingly, the finance ministers moved ahead of their leaders in 1999 and created a parallel and more broadly based organization—the Finance Ministers’ and Central Bankers’ G20 (the Finance Ministers’ G20).
The Finance Ministers’ G20. The first attempt at creating the Finance Ministers’ G20 followed the Mexican financial crisis of 1993–1994
Poverty rates soared, currencies plummeted, output declined, and inflation and unemployment ratcheted up The first meeting was held in Berlin in 1999, the second in Montreal in 2000, and then an unplanned meeting in Ottawa in 2001.
The reason the group came into being was because the G8 without China, India, Mexico, and others at the table was no longer able to function as the world’s steering committee. Thus, as the G8’s role becomes more and more limited, there can be no issue of global concern that is not within the G20’s purview Financial including Issues that range from the threat of pandemic disease to cybercrime, from endemic poverty to climate change.
They will also include issues that none of us can predict, such as the possible need to help re-establish devastated economies if the Arab Spring is to bloom second issue for the G20 is the need for it to consult beyond its immediate membership. G20 multilateralism must mean more than a camouflaged concern only for a restricted group of countries’ narrow national interests.
The Multipolar World and the G20, At the close of WW2, the economic and military might of the United States meant that it had no peer in the free world and, following the break-up of the Soviet Union in the 1990s, it was confirmed as the world’s only superpower Today, however, the ‘unipolar era’ is drawing to a close and so is the ease with which the United States can provide a sense of direction.