The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU).
It works to address major issues related to the global economy, such as international financial stability, climate change mitigation, and sustainable development.
The G20 is composed of most of the world's largest economies, including both industrialized and developing nations, and accounts for around 80% of gross world product (GWP), 59–77% of international trade, two-thirds of the global population, and constitutes 60% of the world's land area.
The G20 was founded in 1999 in response to several world economic crises. Canadian finance minister Paul Martin was chosen as the first chairman and German finance minister Hans Eichel hosted the inaugural meeting.
Starting in 1999 as a meeting for the finance minister and central bank governors, the G20 has evolved into a yearly summit involving the Head of State and Government.
In addition to that, the Sherpa meetings (in charge of carrying out negotiations and building consensus among Leaders), working groups, and special events are also organized throughout the year.
Since 2008 [First meeting in Washington], it has convened at least once a year, with summits involving each member's head of government or state, or finance minister, or foreign minister, and other high-ranking officials; the EU is represented by the European Commission and the European Central Bank.
Other countries, international organizations, and nongovernmental organizations are invited to attend the summits, some on a permanent basis.
At its 2009 summit, the G20 declared itself the primary venue for international economic and financial cooperation.
The group's stature has risen during the subsequent decade, and it is recognized by analysts as exercising considerable global influence; it is also criticized for its limited membership,lack of enforcement powers, and for the alleged undermining of existing international institutions.
Summits are often met with protests, particularly by anti-globalization groups
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 is also invited as a permanent guest.
In addition, each year, the G20's guests include Spain;[41] the Chair of ASEAN; two African countries (the chair of the African Union and a representative of the New Partnership for Africa's Development (NEPAD) and a country (sometimes more than one) invited by the presidency, usually from its own region
To decide which member nation gets to chair the G20 leaders' meeting for a given year, all members, except the European Union, are assigned to one of five different groupings, with all but one group having four members, the other having three.
Nations from the same region are placed in the same group, except Group 1 and Group 2.
All countries within a group are eligible to take over the G20 Presidency when it is their group's turn.
Therefore, the states within the relevant group need to negotiate among themselves to select the next G20 President.
Each year, a different G20 member country assumes the presidency starting from 1 December until 30 November.
The presidency of the G20 rotates every year among its members, with the country that holds the presidency working together with its predecessor and successor, also known as Troika, to ensure the continuity of the agenda.
Currently Italy, Indonesia, and India are the Troika countries.
The G20 has no permanent secretariat.
Agenda and the work coordination is completed by G20 leaders’ personal representatives, known as sherpas together with finance ministers and central bank governors.
The pinnacle of the G20 work in each cycle is a communiqué expressing members’ commitments and vision for the future, drafted from the chosen recommendations and deliverables from ministerial meetings and other work streams.
Understanding the challenges and the need for collective action, Indonesia will focus on three main pillars for its G20 2022 Presidency namely: Global Health Architecture, Sustainable Energy Transition, and Digital Transformation.
Through the sherpa tracks, 11 working groups, 1 initiative group, and 10 engagement groups meets to discuss and provides recommendation on the G20 agenda and priorities
FINANCE TRACK The focus of the issues discussed in this stream are economics and finance, such as: fiscal, monetary and real policies, infrastructure investment, financial regulation, financial inclusion, and international taxation.
The discussion is carried out by the Minister of Finance and the Governor of the Central Bank of each member country.
10 Engagement Groups of private sector/civil society/independent bodies (Business 20, Civil 20, Labour 20, Parliament 20, Science 20, Supreme Audit Institutions 20, Think 20, Urban 20, Women 20 and Youth 20).
It does not reflect exactly the 20 largest economies of the world in any given year; as the organization states:
In a forum such as the G20, it is particularly important for the number of countries involved to be restricted and fixed to ensure the effectiveness and continuity of its activity.
There are no formal criteria for G20 membership and the composition of the group has remained unchanged since it was established.
In view of the objectives of the G20, it was considered important that countries and regions of systemic significance for the international financial system be included.
Aspects such as geographical balance and population representation also played a major part.
PM Modi on Tuesday unveiled the logo, theme and website of India’s G20 Presidency for the Summit 2023.
The logo bears a lotus and the message of ‘Vasudhaiva Kutumbakam — One Earth, One Family, One Future’. the theme of India’s G20 presidency is very much an assertion of PM Modi’s foreign policy – “Vasudhaiva Kutumbakam” or “One Earth-One Family-One Future.”
India will assume the G20 Presidency from December 1, 2022. The logo is based on the theme of lotus.
The seven petals of the lotus in the logo are also significant. They represent the seven continents. Seven is also the number of notes in the universal language of music.
In music, when the seven notes come together, they create a perfect harmony. But each note has its own uniqueness.
Similarly, the G20 aims to bring the world together in harmony while respecting diversity.
India’s mantra of One Earth, One Family, One Future in G20 will pave path for global welfare: PM Modi
India has invited Bangladesh, Egypt, Mauritius, the Netherlands, Nigeria, Oman, Singapore, Spain and the UAE as guest countries for the summit in 2023.
Roadmap for Greener India 'Panchamrit'
Reach non-fossil energy capacity of 500GW by 2030
Fulfil 50% energy requirements via Renewable Energy by 2030
Reduce 1 billion carbon emissions by 2030
Reduce carbon intensity below 45% by 2030
India will achieve the target of Net-Zero by 2070
As India takes on its presidency, it has to iron out the differences and lead from the front.
India has to chalk out an agenda that has the unanimity of all the members. Internal governance reform is the need of the hour and India has to give thrust to inclusiveness and unity.
This will help in thrashing out a consensus that will go a long way in setting a pragmatic, substantive agenda for the forum.
Climate financing is another area that India has to work on with the affluent nations. The developed countries have to be prodded for transfer of clean technologies and renewable energies to medium and low-income countries. India should showcase its exceptional solar energy record while doing so.
The global economy is in the doldrums and there's financial instability across the world. India has to chalk out a roadmap to deal with the situation by teaming up with the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), World Trade Organisation (WTO), and the Financial Stability Board.
Other challenges include taking measures to ensure global food security and a clear-cut G20 policy on the Russia-Ukraine war. At a time when there are mounting calls to expel Russia from the forum
India has to talk tough on a "code of conduct" for all G20 members and see to it that it is enforced.