Why in the News?

The 18th G20 Summit was held in Rio de Janeiro, Brazil, under the theme Building a Just World and a Sustainable Planet.

About G20 Rio de Janeiro 

• The Rio summit marked the first time the African Union (AU) participated as a full member.
• Hosted by Brazil, the third Global South host after Indonesia (2022) and India (2023).
  • The next G-20 is to be in South Africa. Brazil, India & South Africa together forms the troika of G20. These countries representing the Global South and are also part of IBSA and BRICS grouping.

Key takeaways from the summit: The G20 Rio de Janeiro Leaders' Declaration

• Social inclusion and the fight against hunger and poverty
  • Global Alliance against Hunger and Poverty: Launched to eradicate poverty and hunger (refer Box)
  • Global Coalition for Local and Regional Production, Innovation and Equitable Access: Launched to promote access to vaccines, diagnostics, and other health technologies for neglected diseases and vulnerable persons.
  • Commitments on Basic Needs and Equality: For the first time, G20 committed to mobilising resources for basic sanitation, drinking water, combating racism, and promoting racial equality to reduce inequalities.
  • Sustainable development, energy transitions and climate action: Establishment of Task Force on a Global Mobilization against Climate Change to identify & address structural barriers to foster private capital flows for climate action, particularly for developing countries.
  • Reform of global governance institutions: Endorsed the G20 roadmap for better, bigger and more effective multilateral development banks (MDBs).
• Tax on the super-rich: Leaders agreed for the first time to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed.

About the Global Alliance against Hunger and Poverty  Need: By 2030, an estimated 622 million people will live in extreme poverty ($2.15/day), and 582 million will face hunger—similar to 2015 levels. Aim: Accelerate global efforts to eradicate hunger and poverty.  Goals: Reach 500 million people with cash transfer programs in low-income countries by 2030. Provide high-quality school meals to 150 million additional children in vulnerable countries.  Approach: Operates globally through voluntary partnerships and commitments. Members: 148 (82 countries, African Union, EU, etc.), including India. Funding: No dedicated fund; instead, it connects countries with donors and technical support.

Group of 20 (G20) Genesis: Founded in 1999, following the Asian financial crisis, as a forum for finance ministers and Central Bank Governors to discuss global economic and financial issues. The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007. Purpose: Plays an important role in shaping and strengthening global architecture and governance on all major international economic issues. Annual summit: G20 Summit held annually, under the leadership of a rotating Presidency. Presidency is supported by the Troika previous, current and incoming Presidency. Importance:  The G20 represents around 85% of global GDP and 75% of global trade, as well as two-thirds of the world's population, prior to the AU joining.

G20 at a Crossroads: It reveals limitations as a global governance architecture

• Representational inequity: Reluctance to rename the forum as "G21" after the African Union's inclusion demonstrates persistent barriers to genuine global representation. 
• Diplomatic Fragmentation:
  •  Key leaders' absences at the recent summit, like the Russian President and Saudi Crown Prince, highlight divisions within the G20.
  • Also, Argentina's opposition to sustainable development and welfare spending underscores significant differences among members.
  • Major economies like the US, Germany, and Argentina resist wealth tax and progressive taxation proposals, impeding efforts to reduce global disparities.
• Unrealized Goals in Governance Overhaul: 
  • Global institutional reforms: Calls for reforming global institutions like the UN Security Council and World Bank remain unaddressed, limiting the G20's impact on global governance.
  • Climate Commitments: Despite coinciding with COP29, the summit failed to advance climate goals beyond previous declarations. 
• Structural and Operational Weaknesses: G20 decisions are non-binding, reducing their enforceability. Also, it operates without a formal charter, limiting accountability and public scrutiny.
• Competition from Other Institutions: Growing influence of organizations like BRICS and the Shanghai Cooperation Organisation (SCO) poses challenges to a divided G20.

Enhancing the Effectiveness of G20 Summits

• Permanent Secretariat: Establish a secretariat with research and policy capabilities to ensure policy continuity and strategic insights between summits.
• Clear Division of Labour 
  • Focus for G20: Global public goods like monetary stability, trade openness, poverty reduction, and pandemic control. 
  • Focus for G7: Geopolitical issues
• Empowering Middle-Income Members: Enable countries like Argentina, Brazil, India, and South Africa to take active diplomatic roles.
• Accountability Framework: Introduce mechanisms to track commitments, monitor implementation, and provide transparent annual performance reviews.
• Strategic Coordination with UN Agencies: Collaborate with organizations like WHO, UNEP, and UNDP to avoid to duplication of efforts and maximize public goods delivery.
• Addressing Global South Priorities: Advocate for equitable global governance, reducing G7 dominance (e.g., G7 represents 13% of the population but controls 59% of IMF and World Bank voting rights).

Conclusion

In a world grappling with overlapping crises—conflicts, hunger, rising inequalities, forced migration, health emergencies, debt burdens, and the climate crisis- to remain effective and legitimate, the G20 must evolve into a more inclusive, accountable, and action-oriented platform that truly represents the diverse needs and priorities of a rapidly changing world.