2024 G20 Summit: Outcomes Challenges & India's Role

The G20 Summit 2024: Key Outcomes, Challenges, and Way Forward

The recently concluded G20 Summit in Rio de Janeiro brought global leaders together to discuss pressing global challenges, ranging from climate finance to taxation reforms, poverty alleviation, and geopolitical conflicts. The summit highlighted both achievements and gaps in addressing global inequalities and sustainable development.

• The theme for the 2024 G20 Summit was "Building a Just World and a Sustainable Planet".

G20 Troika:

• ·         The “troika” consists of the current, previous, and next G20 presidencies and the three members cooperate with one another in preparing for the G20 Summit.
• ·         During South Africa's presidency (2025), we will work closely together with Brazil (2024 presidency) and the US (2026 presidency).

 

Focus areas of G20:

Socio-economic issues such as agriculture, anti-corruption, climate, digital economy, education, employment, energy, environment, health, tourism, trade and investment. The Working Groups under this track include:

1. Agriculture Working Group
2. Anti-corruption Working Group
3. Culture Working Group
4. Development Working Group
5. Digital Economy Working Group
6. Disaster Risk Reduction Working Group
7. Education Working Group
8. Employment Working Group
9. Energy Transitions Working Group
10. Environment and Climate Sustainability Working Group
11. Health Working Group
12. Tourism Working Group
13. Trade and Investment Working Group

 

Why in the News?

The G20 Summit 2024 emphasized key areas such as:

• Taxation of Billionaires: Discussions on introducing global taxation for the ultra-rich.
• Energy Transition: Push for renewable energy while addressing fossil fuel subsidies.
• Climate Initiatives: Support for COP29 in Azerbaijan and COP30 in Brazil.
• Poverty Reduction: Formation of a Global Alliance Against Hunger and Poverty.

India's active participation showcased its role in promoting food security, poverty reduction, and equitable global development.

 

Inception and Evolution of the G20

• Founded in 1999 after the Asian financial crisis (1997–1998) as an informal forum for Finance Ministers and Central Bank Governors.
• Initially focused on macroeconomic issues but later expanded to include trade, climate change, sustainable development, health, agriculture, energy, environment, and anti-corruption.
• Membership: 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, UK, and the US) + European Union (EU) + African Union (AU).
• Global Representation: Accounts for 85% of global GDP, 75% of global trade, and two-thirds of the world population.

Elevation to Leaders' Level

• Upgraded in 2009 following the global economic crisis (2007–2008) to include Heads of State/Government for high-level crisis coordination.
• G20 Leaders now meet regularly, establishing it as the premier forum for international economic cooperation.

G20 Presidency: 

The G20 does not have a permanent secretariat or staff. Instead, the G20 Presidency rotates annually among the members.

 

Major Outcomes of G20 Summit 2024

1. Climate Finance Commitment:
   The G20 acknowledged the urgent need to scale up climate finance “from billions to trillions,” but failed to establish a concrete funding plan.
2. Taxation of Billionaires:
   Brazil led the push for a global tax on the super-rich, gaining partial support amidst concerns over sovereignty and implementation challenges.
3. Global Hunger and Poverty Alliance:
   This initiative, supported by 82 nations, aims to reduce hunger and poverty for 500 million people by 2030.
4. Energy Transition:
   The summit focused on investing in renewable energy but lacked consensus on phasing out fossil fuel subsidies.
5. Inclusion of SDG 18:
   A new Sustainable Development Goal (SDG) was introduced, emphasizing ethnic-racial equality to combat systemic discrimination.
6. Reforming Multilateral Development Banks (MDBs):
   Efforts were made to enhance MDB cooperation for mobilizing resources toward climate change and poverty alleviation.

 

India’s Leadership Role

India's role in the G20 Summit reinforced its position as a global leader in addressing key issues:

1. Championing Food Security:
• Promoted millets as climate-resilient crops to combat hunger.
• Advocated for resilient agricultural practices and efficient food supply chains.
2. Reforming Multilateral Platforms:
• Advocated for inclusive reforms in the UN, IMF, and World Bank.
• Pushed the G20 Roadmap for MDB reforms during its presidency.
3. Supporting the Global South:
• Amplified the concerns of developing nations on climate finance and equitable development.
• Promoted collaborative solutions in healthcare, education, and technology.
4. Strategic Partnerships:
• Engaged in bilateral discussions to explore trade, investment, and conflict resolution.

 

Challenges Faced by the G20

1. Global Hunger and Food Crisis:
• Geopolitical conflicts, especially the Russia-Ukraine war, have exacerbated food and fertilizer shortages.
2. Geopolitical Rivalries:
• Conflicts between key members, such as the U.S., China, and Russia, hinder consensus-building.
3. Divergent Priorities:
• Differences between developed and developing nations on climate financing and economic growth.
4. Weak Enforcement Mechanisms:
• Lack of accountability in implementing agreements and pledges.
5. Inadequate Representation of Global South:
• Smaller nations remain underrepresented in G20 decision-making.

 

Way Forward

1. Addressing Hunger and Fertilizer Crisis:
• Enhance collaboration with international organizations to ensure sustainable food supply and promote alternative fertilizers.
2. Inclusive Dialogues:
• Balance economic growth with climate goals, ensuring equitable resource allocation.
3. Strengthening Enforcement Mechanisms:
• Establish monitoring bodies to ensure the implementation of climate finance and debt relief.
4. Enhancing Global South Representation:
• Broaden G20 membership and include advisory roles for underrepresented nations.
5. Diplomatic Engagement:
• Foster multilateral dialogue to address geopolitical conflicts and humanitarian crises.

 

Frequently Asked Questions (FAQs)

1. What is the G20 Summit?
   The G20 Summit is an annual gathering of the world’s largest economies to discuss global economic, political, and environmental challenges.
2. What are the major outcomes of the 2024 G20 Summit?
   Key outcomes include taxation of billionaires, climate finance discussions, and the formation of a Global Hunger and Poverty Alliance.
3. Why is India’s role in G20 significant?
   India has championed food security, supported the Global South, and pushed for reforms in multilateral platforms.
4. What is the Global Hunger and Poverty Alliance?
   It is an initiative aimed at reducing hunger and poverty for 500 million people by 2030.
5. What is SDG 18?
   SDG 18 focuses on ethnic-racial equality, addressing systemic discrimination, and promoting social inclusion.
6. What were the climate finance commitments at the summit?
   The G20 emphasized scaling up climate finance but failed to outline a concrete funding mechanism.
7. What challenges does the G20 face?
   Challenges include geopolitical rivalries, inadequate representation of the Global South, and weak enforcement mechanisms.
8. How does the G20 address global hunger?
   Through initiatives like the Millet Initiative and the Global Hunger and Poverty Alliance, the G20 promotes sustainable agriculture and food security.
9. What is India’s Millet Initiative?
   It is an effort to promote millets as climate-resilient crops to address global hunger and malnutrition.
10. How does the G20 support the Global South?
    By advocating for equitable climate finance, vaccine distribution, and sustainable development initiatives.
11. What are the recommendations for improving G20 effectiveness?
    Recommendations include strengthening enforcement mechanisms, enhancing representation of the Global South, and fostering inclusive dialogues.

 

By emphasizing collaborative approaches, equitable development, and sustainability, the G20 can play a pivotal role in addressing global challenges. India’s leadership and initiatives continue to contribute significantly to the group’s agenda.

 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

UPSC Prelims: 

Q. In which one of the following groups are all the four countries members of G20? (2020)

(a) Argentina, Mexico, South Africa and Turkey 

(b) Australia, Canada, Malaysia and New Zealand 

(c) Brazil, Iran, Saudi Arabia and Vietnam 

(d) Indonesia, Japan, Singapore and South Korea 

Answer: (a)

Q. With reference to the “G20 Common Framework”, consider the following statements (2022)

1. It is an initiative endorsed by the G20 together with the Paris Club. 
2. It is an initiative to support Low Income Countries with unsustainable debt. 

Which of the statements given above is/are correct? 

(a) 1 only 

(b) 2 only 

(c) Both 1 and 2 

(d) Neither 1 nor 2 

Answer: (c)

 

Source: G20.org, UPSC