The G20 (or Group of Twenty) is an international forum for the governments and central bank governors from 19 countries and the European Union. The EU is represented by the European Commission and by the European Central Bank. Founded in 1999 with the aim to discuss policy pertaining to the promotion of international financial stability, the G20 has expanded its agenda since 2008 and heads of government or heads of state, as well as finance ministers and foreign ministers, have periodically conferred at summits ever since. It seeks to address issues that go beyond the responsibilities of any one organization. In 2008, the first G20 Leaders’ Summit was held in Washington DC, US. Prior to this, it was merely forum for meeting of Finance Ministers and Central Bank Governors. The group has played key role in responding to the global nancial crisis.
The heads of the G20 nations met semi-annually at G20 summits between 2009 and 2010. Since the November 2011 Cannes summit, all G20 summits have been held annually
The G20 membership comprises a mix of the world’s advanced and emerging economies, representing about two-thirds of the world’s population, 84 per cent of global gross domestic product and over 79 per cent of global trade.
The G20’s primary focus has been governance of the global economy. The issues that are discussed in G-20 summits include domestic reforms to achieve “sustained growth”, global energy and resource commodity markets, reform of the World Bank and IMF, and the impact of demographic changes due to an aging world population.
The work of G20 members is supported by several international organisations that provide policy advice. The G20 also regularly engages with non-government sectors.
India will host G20 Summit In 2022, when it celebrates its 75th year of Independence. It was announced by Prime Minister Narendra Modi during the G20 meet of international grouping in Buenos Aires, Argentina. This comes after Italy accepted India’s formal request to host this summit in 2021 as earlier it was going to host it in 2022. During the Buenos Aires G20 meet, India presented a nine-point agenda to the G20 countries calling for strong and active cooperation among them to comprehensively deal with fugitive economic offenders
G-20 meetings are usually the site of protests against the G-20 agenda. They claim the group focuses too much on financial interests and globalization. Protesters want the G-20 leaders to focus on one or more of these issues:
China and the United States have agreed to halt additional tariffs as both countries engage in new trade negotiations with the goal of reaching an agreement within 90 days. The breakthrough came after a dinner meeting between President Donald Trump and Chinese leader Xi Jinping at the Group of 20 summit in Buenos Aires. Trump agreed not to boost tariffs on $200bn of Chinese goods to 25 percent on January 1 as previously announced, while Beijing agreed to buy an unspecified but “very substantial” amount of agricultural, energy, industrial and other products.
India has also called for a pro-active role from the Financial Action Task Force (FATF) regarding establishment of an international cooperation.
The G20 Digital Economy Ministerial Meeting was held in Salta, Argentina from 23 to 24 August, 2018. The theme of the meeting was ‘Building consensus for fair and sustainable development‘. It concluded with adaptation of declaration that reflects G20’s commitment towards promoting policies and actions that catalyze digital transformations.
After the global financial crisis in 2008, consensus emerged on the need for a better regulatory structure to deal with risks stemming from financial fragility. Regulatory institutions in general play catch-up with financial markets, creating underlying risk. The Financial Stability Board, which works under the auspices of G20, has issued several recommendations to the G20 members to combat systemic risk and to strengthen the international financial system. A number of regulatory reforms like Basel III, over-the-counter (OTC) derivatives market, changes affecting the regulatory and accounting framework for institutional investors, policy measures for globally systemically important financial institutions (G-SIFIs) are being implemented. G20 has played an important role in pushing improvement in financial regulatory structure not only in the case of member countries but also for multilateral institutions. During the 12th Summit in Germany, G20 members highlighted that efforts will be made to complete quota reforms at the IMF by 2019. Can the world drive a grand bargain between emerging and developed economies on fashioning more representative, effective and legitimate global institutions? Only time will tell.