India’s G20 Presidency, which started on December 1, 2022, is special as for the first time the ‘Troika’ will comprise only developing countries that will set the agenda for two-thirds of the world population, representing around 85 per cent of the global GDP and over 75 per cent of the global trade.
The Troika is the format in which the G20 Presidency works, it comprises the country which is currently holding the Presidency, the country holding the Presidency earlier, and the country which will be the upcoming Presidency holder. This time India (current President), Indonesia (previous President), and Brazil (upcoming President) will form the Troika. As developing countries continue to face several challenges, G20 will look to shape the world’s agenda and lead toward global peace and stability.
India’s participation in the G20 process stems from the realisation that as a major developing economy India has a vital stake in the stability of the international economic and financial system. India has been actively involved in the G20 preparatory process both at the Sherpas Track and the Financial Track since its inception.
Some of the key challenges developing countries face are climate change and food crisis.
Numerous meetings, summits, talks, and conferences have taken place to resolve the climate change issues, and there is considerable progress as well. However, the issue of burdening emerging economies with environmental goals still prevails. Striking a balance between economic growth and measures to cope with adverse climatic conditions, is one of the primary hindrances before emerging economies.
In the recently organized COP 27, in which the delegates agreed to establish a ‘Loss and Damage’ fund to compensate countries most vulnerable to climate change. Loss and Damage refer to the cost incurred from climate-induced weather extremes. India has welcomed the decision and has long supported the initiative. This fund will further help the most vulnerable countries to minimise the effects of climate change.
Coming to the food crisis, food prices have hit record levels in 2022 and have led to a global challenge of food security, especially for people in developing countries.
According to a report by UNCTAD the combination of high food prices and a strong dollar is a “double burden” that many people in developing countries cannot bear, forcing them to make even harder choices – such as skipping meals or removing their children from school – to make ends meet.
The Group of Twenty, or G20, is the premier forum for international cooperation on the most important aspects of the international economic and financial agenda. It brings together the world’s major advanced and emerging economies.
The G20 comprises Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK and US.
The G20 Countries together represent around 90 per cent of global GDP, 80 per cent of global trade, and two-thirds of the world’s population.
The objectives of the G20 are a) Policy coordination between its members in order to achieve global economic stability, sustainable growth; b) To promote financial regulations that reduce risks and prevent future financial crises; and c) To create a new international financial architecture.
The G-20 operates without a permanent secretariat or staff. The chair rotates annually among the members and is selected from a different regional grouping of countries. The chair is part of a revolving three-member management group of past, present and future chairs referred to as the Troika. (ANI)
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