It was established in 1999 to promote discussions and cooperation on global economic stability and growth.
Who is in the G20?
The G20 member countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States, along with the European Union.
What does the G20 do?
The primary focus of the G20 is to address international financial and economic issues. This includes topics such as fiscal and monetary policies, trade, and development. The leaders of these nations, including their heads of state or government, finance ministers, and central bank governors, meet annually at the G20 Summit to discuss and coordinate policies that can impact the global economy.
Why is the G20 so important?
The G20 Summit holds immense importance on the global stage for several compelling reasons:
- Economic Powerhouses: The G20 comprises the world’s largest economies, representing over 85% of global GDP and two-thirds of the world’s population. As a forum for economic cooperation, decisions made here have significant repercussions on the global economy.
- Global Economic Stability: The G20 plays a crucial role in promoting economic stability and growth. Member nations collaborate to address financial crises, trade imbalances, and economic challenges, fostering a more secure and prosperous global environment.
- Policy Coordination: The summit serves as a platform for policymakers and leaders to discuss and coordinate economic policies, trade agreements, and monetary strategies. This cooperation is essential for preventing financial volatility and market disruptions.
- Global Challenges: Beyond economics, the G20 addresses pressing global issues like climate change, public health crises (as witnessed during the COVID-19 pandemic), and sustainable development. Leaders use this platform to develop collective solutions to shared challenges.
- International Trade: The G20 promotes fair trade practices, reduces trade barriers, and encourages open markets. Resolving trade disputes and fostering international trade relationships are pivotal for global economic health.
- Diplomacy and Geopolitics: The summit provides an opportunity for world leaders to engage in diplomatic discussions and address geopolitical tensions. It often serves as a venue for leaders to build trust and resolve international conflicts.
- Development Aid: The G20 members contribute significantly to international development efforts. Discussions at the summit can influence aid policies and strategies,. Ultimately shaping the global approach to alleviating poverty and promoting sustainable development.
In essence, the G20 Summit is vital for fostering economic stability, addressing global challenges, and promoting cooperation among the world’s major economies. Its decisions and agreements have far-reaching consequences that impact not only member nations but also the entire world, making it a critical forum for international collaboration and progress.
G20 view on the Ukraine war
The hosts of this year’s G20 summit is in New Delhi, India.
The Group of 20 adopted a consensus declaration at a summit on Saturday that avoided condemning Russia for the war in Ukraine but called on all states not to use force to grab territory.
Indian Prime Minister Narendra Modi announced that the Leaders’ Declaration had been adopted on the first day of the weekend G20 summit in New Delhi.
“On the back of the hard work of all the teams, we have received consensus on the G20 Leaders Summit Declaration. I announce the adoption of this declaration,” Modi told the leaders, including U.S. President Joe Biden and heads of government and state from across the world.
The consensus came as a surprise as G20 is deeply divided over the war in Ukraine, with Western nations earlier pushing for strong condemnation of Russia in the Leaders’ Declaration, while others demanded a focus on broader economic issues.
“We call on all states to uphold the principles of international law including territorial integrity and sovereignty, international humanitarian law, and the multilateral system that safeguards peace and stability,” the declaration said.
Ukraine’s foreign ministry said the declaration was “nothing to be proud of”, adding that a Ukrainian presence would have given participants a better understanding of the situation.