New Delhi is set to host the G20 Heads of State and Government Summit on September 9-10, attracting leaders from the world's most influential nations.
This summit marks the culmination of India's year-long presidency of the G20. It will wrap up with the adoption of a G20 Leaders' Declaration, reflecting the leaders' dedication to the priorities discussed and agreed upon in various ministerial and working group meetings (we'll delve into those details shortly).
Let's dive into the world of the G20, from its origins and purpose to the upcoming New Delhi Summit.
What is the G20?
The G20, short for the Group of Twenty, brings together 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, and the United States) along with the European Union.
These member countries collectively represent a significant share of the world's economic landscape, contributing to about 85% of the global GDP, conducting over 75% of global trade, and encompassing roughly two-thirds of the world's population. Serving as a platform for international economic collaboration, the G20 plays a vital role in shaping and fortifying global systems and governance concerning key international economic matters.
Among its key goals are:
1. Coordinating policies among its members to achieve global economic stability and sustainable growth.
2. Advocating for financial regulations that mitigate risks and prevent future financial crises.
3. Working towards the establishment of a new international financial framework.
When did the G20 originate, and why?
The G20 emerged following the dissolution of the Soviet Union in 1991, coinciding with the end of the Cold War. This period also witnessed the rise of robust economies in the Global South, including nations like Brazil, China, and India. It became evident that a reform of global governance and international institutions was necessary in this changing global landscape. In simpler terms, existing forums like the G7 and international organizations like the World Bank were ill-equipped to address crises in this evolving global order.
Back in 1997, the Asian financial crisis shook up some of the swiftly developing East Asian economies, and it didn't stop there—it extended its reach to Latin America. In response to this turmoil, the G22 emerged in 1998 as the earliest version of what we now know as the G20. Originally intended as a one-time crisis-management gathering, things took a turn in early 1999 when two additional meetings were held, expanding the group to 33 members, referred to as the G33. These gatherings were convened to delve into discussions about global economic reforms and the international financial system.
