The Group of Twenty (G20) is the premier forum for international economic cooperation. It plays an important role in shaping and strengthening global architecture and governance on all major international economic issues. India held the Presidency of the G20 from 1 December 2022 to 30 November 2023.
Inception of G20
The G20 was founded in 1999 after the Asian financial crisis as a forum. Initially it is meant for the Finance Ministers and Central Bank Governors to discuss global economic and financial issues. Later it is elevated to leadership level. The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for international economic cooperation”.
G20 Summit is held annually, under the leadership of a rotating Presidency. It initially focuses largely on broad macroeconomic issues. But it has since expanded its agenda to inter-alia include trade, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption. The G20 Presidency is responsible for bringing together the G20 agenda in consultation with other members.
In 2023 during India’s Presidency our PM put fourth the proposal for inclusion of African Union as a new permanent member.
G20 Members
The Group of Twenty (G20) comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom and United States). It also includes two regional bodies: the European Union and the African Union (as of 2023). The members represent around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.
How G20 Works?
The Presidency is responsible for guiding the G20 agenda for one year and hosting the Summit.
The G20 process is coordinated by Sherpas, who are personal representatives of the Leaders, and Finance Ministers and Central Bank Governors. The process includes thematically oriented working groups with representatives from relevant ministries, invited/guest countries, and international organizations.
The Finance Track is primarily led by the Ministry of Finance. Working groups under this track meet regularly during each Presidency. Sherpas oversee negotiations throughout the year, discussing Summit agenda items and coordinating the G20’s substantive work.
Additionally, Engagement Groups bring together civil societies, parliamentarians, think tanks, women, youth, labor, businesses, and researchers from G20 countries.
The G20 does not have a permanent secretariat. The Presidency is supported by the Troika, consisting of the previous, current, and incoming Presidencies. For example, during India’s Presidency, the troika comprised Indonesia, India, and Brazil, respectively. During the Brazilian Presidency, the troika will comprise India, Brazil, and South Africa.
Let’s summaries it in the table given below:
| G20 Presidency | The Presidency steers the G20 agenda for one year and hosts the Summit. |
|---|---|
| Tracks | The G20 consists of two parallel tracks: the Finance Track and the Sherpa Track. |
| Theme | “Vasudhaiva Kutumbakam” or “One Earth · One Family · One Future” – was drawn from the ancient Sanskrit text of the Maha Upanishad. Essentially, the theme affirms the value of all life – human, animal, plant, and microorganisms – and their interconnectedness on the planet Earth and in the wider universe. |
| Leadership | Finance Ministers and Central Bank Governors lead the Finance Track, while Sherpas lead the Sherpa Track. |
| Coordination | The G20 process from the Sherpa side is coordinated by the Sherpas of member countries, who are personal emissaries of the Leaders. Finance Track is led by Finance Ministers and Central Bank Governors of the member countries. |
| Working Groups | There are thematically oriented working groups within each track, where representatives from relevant ministries, invited/guest countries, and international organisations participate. |
| Finance Track | Led by the Ministry of Finance, with working groups meeting regularly throughout the Presidency. |
| Sherpas’ Role | Sherpas oversee negotiations, discussing agenda items for the Summit and coordinating the substantive work of the G20. |
| Engagement Groups | These groups bring together civil societies, parliamentarians, think tanks, women, youth, labour, businesses, and researchers from the G20 countries. |
| Secretariat | The Group does not have a permanent secretariat but is supported by the Troika – previous, current, and incoming Presidency. |
| Troika | During India’s Presidency, the troika comprised Indonesia, India, and Brazil, respectively. During the Brazilian Presidency, the troika will comprise India, Brazil, and South Africa. |
Outcomes of the G20 Leaders summit
India’s G20 Presidency successfully championed both the climate and development agendas. The New Delhi Leaders’ Declaration (NDLD) was signed by all, comprising 83 paragraphs. This document signifies global consensus and underscores the power of unity. It represents a shift from conflict to cooperation, focusing on development. India showcased leadership in enhancing policy coherence among G20 countries and fostering trade. India pushed for climate action and inclusive development.
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