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