Group of Twenty (G20)

• The Group of Twenty, or the G20, is the premier forum for international economic cooperation. The G20 brings together the leaders of both developed and developing countries from every continent.
• Collectively, G20 members represent around 80% of the world’s economic output, two-thirds of the global population, and three-quarters of international trade. Throughout the year, representatives from G20 countries gather to discuss financial and socioeconomic issues.

The G20 Work

• The presidency of the G20 rotates between member countries every year.
• The presidency plays a leading role in setting the agenda and organizing the Leaders’ Summit, which is attended by the G20 Heads of State or Government.
• At the Summit, the leaders issued a declaration, or communiqué, based on policy discussions at meetings held throughout the year.
• In the run-up to the Summit, the presidency hosts several meetings featuring Ministers, senior government officials as well as civil society representatives.
• At the government level, the G20 work is organized around the Finance and Sherpa Tracks, while civil society assembles through Engagement Groups.
• Each G20 Presidency develops a theme for the year which is central to international discussion. This year’s theme is “Realizing Opportunities of the 21st Century for All”.

G20 Participants.

• The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, RepublicofKorea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union (EU).
• Spain is a permanent guest invitee to the G20 meetings. In 2020, Jordan, Singapore, and Switzerland are invited as guest countries.
• International Organizations that have historically contributed to the G20 work are invited as well. These include:
  • Food and Agriculture Organization (FAO),
  • The Financial Stability Board (FSB),
  • The International Labour Organization (ILO),
  • The International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the United Nations (UN),
  • The World Bank Group (WBG),
  • The World Health Organization (WHO)
  • the World Trade Organization (WTO).

Areas of concern for G20

• The G20 focuses on a broad agenda of issues of global importance, although, issues pertaining to the global economy dominate the agenda, additional items have become more important in recent years, like:
  • Financial markets
  • Tax and fiscal policy
  • Trade
  • Agriculture
  • Employment
  • Energy
  • Fight against corruption
  • Advancement of women in the job market
  • 2030 agenda for Sustainable development
  • Climate Change
  • Global Health
  • Anti-terrorism
  • Inclusive entrepreneurship
• In the news: Virtual G20 Leaders’ Summit was convened on 26 March 2020 to discuss the challenges posed by the outbreak of the COVID-19 pandemic and to forge a globally coordinated response.

Group of 7 (G7)

• The G7 (or Group of Seven) is an organization made up of the world’s seven largest so-called advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
• The group regards itself as “a community of values”, with freedom and human rights, democracy and the rule of law, and prosperity and sustainable development as its key principles.
• It used to be known as the G8 (Group of Eight) until 2014 when Russia was excluded because it annexed Crimea from Ukraine.
• Ministers and civil servants from the G7 countries meet throughout the year to discuss matters of mutual interest.
• Each member nation takes over the G7 presidency for a year on a rolling basis and hosts the annual center-piece two-day summit meeting.
• Energy policy, climate change, HIV/Aids, and global security are just some of the subjects discussed in past summits.
• At the end of the summit, a communiqué is issued, outlining what has been agreed upon.  Attendees include the G7 nations’ heads of government plus the president of the European Commission and the president of the European Council.

Significance

G7 is capable of setting the global agenda because decisions taken by these major economic powers have a real impact. Thus, decisions taken at the G7 are not legally binding but exert strong political influence.

G7 Summits

• Its first summit was held at Rambouillet, France, in 1975
• This year, the 45th G7 summit will be held on August 24-26, 2019, in Biarritz, France. It will focus on fighting income and gender inequality and protecting biodiversity.
• The 2019 G7 Summit, presided over by France, will focus on fighting inequality.
  • Following are the five objectives for the 2019 Summit:
  • Fighting inequality of opportunity, promoting in particular gender equality, access to education and high-quality health services;
  • Reducing environmental inequality by protecting our planet through climate finance and a fair ecological transition, preserving biodiversity and the oceans;
  • Strengthening the social dimension of globalization through more fair and equitable trade, tax and development policies;
  • Aking action for peace against security threats and terrorism which weaken the foundations of our societies; and
  • Tapping into the opportunities created by digital technology and artificial intelligence (AI).

Criticism of the group

• Criticized as “an artifact of a bygone era”.
• It has no representative from any African, Russian, or Middle Eastern nation – is completely outdated.
• G7 leaders are creating a wide gap between the ‘haves’ and the ‘have-nots’ both in their countries as well as across the globe, according to a new report published by non-profit Oxfam International.

Group of 4 (G4)

• G-4 is a group of four countries i.e. Brazil, Germany, India, and Japan which support each other’s bids for permanent seats on the United Nations Security Council (UNSC).
• Each of these four countries has figured among the elected non-permanent members of the council since the UN’s establishment.
• Their economic and political influence has grown significantly in the last decades, reaching a scope comparable to the permanent members (P5).
• G4 campaigns for U.N. Reforms, including more representation for developing countries, both in the permanent and non-permanent categories, in the UNSC.
• G4’s bids are often opposed by Uniting for Consensus movement or Coffee Club (ground 12 countries including Pakistan led by Italy) and particularly their economic competitors or political rivals.

The Finance Track

Meetings of G20 Finance Ministers and Central Bank Governors, as well as their Deputies, focus on fiscal and monetary policy issues such as the global economy, infrastructure, financial regulation, financial inclusion, international financial architecture, and international taxation.

The Sherpa Track.

Meetings of Ministers and relevant senior officials, which focus on socioeconomic issues such as agriculture, anti-corruption, climate, digital economy, education, employment, energy, environment, health, tourism, trade, and investment.

Engagement Groups

• Represent civil society and develop recommendations that are submitted to G20 Leaders for their consideration. Engagement Groups include Business 20, Youth 20, Labour 20, Think 20, Civil 20, Women 20, Science 20, and Urban 20.
• Note: The group has no permanent staff of its own, so every year in December, a G20 country from a rotating region takes on the presidency.

In News:

• Virtual G20 Leaders’ Summit was convened on 26 March 2020 to discuss the challenges posed by the outbreak of the COVID-19 pandemic and to forge a globally coordinated response.
• At the G20 (Group of Twenty) summit held virtually, India called for a “New Global Index” for the post-Corona world.

New Global Index will be based on 4 pillars of

1. Talent,
2. Technology,
3. Transparency and
4. Trusteeship towards the planet.