G20: All You Need to Know

The Group of Twenty, or G20, has emerged as a critical forum for international cooperation and decision-making in an increasingly interconnected world.

From its inception in 1999, the G20 has successfully managed to steer the global economy through turbulent waters. The group was pivotal in stabilizing the global financial system during the 2008 financial crisis, coordinating stimulus measures and reforms that helped prevent a complete economic meltdown.

One of the Group of 20's greatest strengths is its diplomatic charm. Unlike formal international organizations, the Group of Twenty Finance Ministers and Central Bank Governors operate informally, permitting frank dialogue and consensus-building among leaders. This format enables the group to exert significant influence on global affairs without the weight of binding commitments. Its ability to convene leaders from diverse cultures and political systems amplifies its influence, making it a key player in shaping global agendas.

Sputnik sheds light on the group’s modus operandi, how they interface with other multilateral organizations, and the main facts about the forthcoming G20 summit in New Delhi, India.

The G20 is a multinational forum consisting of what were originally the 19 countries with the world's largest economies plus the European Union; it operates as a global platform that encompasses the leading developed and emerging economies worldwide.

This group of 19 member nations collectively account for 85% of the world's GDP, manages 75% of international trade, and are home to two-thirds of the global population.

The G20 was established in 1999 in response to the 1997-98 Asian financial crisis, serving as a platform for Finance Ministers and Central Bank Governors to deliberate on worldwide economic and financial matters.

Recognized as the exclusive club for transnational economic partnership, the Group of Twenty plays a crucial role in shaping and reinforcing the global structure and governance regarding all critical international economic challenges.

The G20 operates without a permanent secretariat or staff. Instead, the G20 Presidency changes annually among its members and is selected from diverse regional clusters of countries. Hence, the 19 member nations are split into 5 groups, with 4 countries in each group.

The majority of these groupings are structured regionally, with countries from the same geographic area typically placed in the same group.

The first and second groups do not follow the regional grouping norm.

As the 20th member, the EU is not affiliated with these regional clusters.

Invitees include Spain, the United Nations, the African Union (the chair and a representative of New Partnership for Africa’s Development), and the chair of the Association of Southeast Asian Nations.

The G20 Presidency rotates annually among countries from diverse groups. Within each group, member states have an equal chance to assume the Presidency during their group's allotted term. Currently, India, a member of Group 2, holds the G20 Presidency from December 1, 2022, to November 30, 2023.

The responsibilities of the G20 Presidency ensure the consolidation of the G20 agenda through consultations with fellow member nations in response to global economic shifts. To maintain a seamless transition, the Presidency receives support from a "Troika," ("Triad") consisting of the current, immediate past, and future host countries. During India's tenure as the present G20 Presidency, the "Troika" comprises Indonesia, India, and Brazil.

The rotational G20 Presidency oversees the G20 agenda for a year and organizes the Annual G-20 Summit.

The G20 comprises two separate paths:

Additionally, there are Engagement Groups that convene representatives from think tanks, civil society organizations, labor unions, women groups, parliamentarians, youth organizations, local and international corporations, and researchers from the G20 member countries. The objective is to enable a robust collaborative discourse, fostering broader inclusion and participation in the design of global solutions.

The G20 convenes yearly, under its formal title "Summit on Financial Markets and the World Economy," an annual gathering of finance ministers and heads of state representing member countries. India, the nation holding the rotating presidency, is responsible for hosting the annual summit meeting.

The leaders' goal is to establish harmony for collective action, with their attention centered on several core issues.

The aim is to wrap up the two-day assembly with a joint statement that binds all participants to a shared course of action, even though this statement lacks legal enforceability. However, individual meetings can sometimes take precedence over formal proceedings.

In 2023, under India's leadership, the G20 will focus on the theme: "Vasudhaiva Kutumbakam" – a Sanskrit phrase, that means "The Earth is one family."

The 2023 G20 Summit is on the horizon, as it's scheduled to be held on September 9 and 10 at 'Bharat Mandapam,' situated within the ITPO Convention Centre, Pragati Maidan in New Delhi.

At the behest of each Presidency, prominent international organizations contribute to G20 gatherings by offering substantial insights and enhancing the discourse.

In every G20 Working Group gathering, international multilateral organizations have engaged productively as participants, helping with data delivery and offering proposals on crucial issues.