India prepares to assume the Presidency of G20 on December 1 and the Presidency will set the agenda amidst the ongoing Russia-Ukraine war, looming energy crisis and food crisis. The G20 will deliberate on the financial assistance as the way to embrace the climate target. Nageswaran elaborated on how critical is climate finance for a judicious balance between the growth aspirations of poor and developing nations, and climate considerations.
The G20 holds a multi-year mandate to ensure institutional continuity. As it will continue addressing the challenges and the need for collective action which is led by Indonesia under the current Presidency.
United Nations Secretary General António Guterres also expressed hope that India’s G20 presidency will allow for the creation of effective systems of debt restructuring, warning that the developing countries are facing as a result of the impact of the pandemic and increased food and fuel prices due to the Ukraine conflict.
How the G20 works
The G20 2022 Presidency is focused on three main pillars as the result of pandemic: Global Health Architecture, Sustainable Energy Transition, and Digital Transformation. Through these pillars, Indonesia will continue to take the lead on ensuring equitable access to Covid-19 vaccines, promoting sustainable and inclusive economic development through MSMEs participation and digital economy.
Since 2011, the G20 Summit has been held annually, under the leadership of a rotating Presidency. The G20 does not have a charter or a secretariat. The G20 process is led by the Sherpas of member countries. The sherpas represent as the emissaries of the Leaders. Primarily, the Sherpas are involved in the discussion of the agenda items for the Summit which are broadly defined. The sherpas are also responsible for coordinating the substantive work of the G20.
The foundation of G20 was laid in 1999 as a response mechanism in the aftermath of the Asian financial crisis. G20, as a forum conceptualized for the Finance Ministers and Central Bank Governors to discuss global economic and financial issues. It was later upgraded to the level of Heads of State and Government and was designated the ‘premier forum for international economic cooperation’.
The work is divided into two tracks: the Finance Track and the Sherpa Track. Within the two tracks, there are thematically oriented working groups in which representatives from the relevant ministries of the members as well as from guest countries and various international organisations participate. The working groups meet regularly throughout the term of each Presidency.
The G20 initially focused largely on broad macroeconomic policy, but it has since expanded its ambit to include trade, climate change, sustainable development, energy, environment, climate change, anti-corruption. The agenda is also influenced by current economic developments as well as by the tasks and goals agreed upon in previous years.