India in the G20

Rule-taker to Rule-maker

Manjeet Kripalani, Manjeet Kripalani

• Publisher: Routledge India
• Year: 2021
• ISBN:
  9781000516494
• Edition: 1
• Topic: Politics & International Relations
• Subtopic: Trade & Tariffs
• Index: Politics & International Relations

This book analyses the importance of the G20 to India, its role so far, and how it can leverage its presidency year to be an influential author of new global rules.

In 2023, India will be the President of the G20 Summit, the world's most influential multilateral economic forum. For countries like India, the G20 is a unique global institution, where developed and developing countries have equal stature. This creates opportunities to showcase their global political, economic and intellectual leadership, have a significant impact on the global economic governance agenda and make it more inclusive. This volume discusses how the Presidency year gives India the opportunity to '… hold the pen, write the rules' and lead the G20 year intellectually, financially, managerially and administratively. It provides a ringside view of India's path to the G20 Presidency and examines issues such as the core agenda of the G20; explains the significance of forums like T20, B20, and their proliferations; India's journey as a marginal player in the G20 to its current status; issue of dedicated leadership and management; and India's Agenda for 2023.

Topical, timely, important and lucidly written, this book in The Gateway House Guide to India in the 2020s series will be key reading for scholars and researchers of economics, multilaterals, global governance, strategic studies, defence studies, SAARC, UN Studies, foreign policy, international relations, international economics and international trade, as well as interest to policymakers, diplomats, career bureaucrats, and professionals working with think tanks, academia and multilateral agencies, and business.

1What is the G20, and why it is important

DOI: 10.4324/9781003152903-1

1.1 The core agenda of the G20

The Group of Twenty, or G20, was conceptualised during the Asian financial crisis of 1997. It comprises 19 countries plus one bloc, the European Union. The finance ministers and central bank governors of member countries met in Germany in 1999 for a broad-based discussion on containing the effects of the crisis through collective measures by developed and developing countries.

When the trans-Atlantic crisis hit Western economies in 2008, the forum was upgraded to a head of state summit. Pushed by the affected Western economies, the G20 took collective decisions to stabilise the world economy and came to be acknowledged as the worlds “premier economic governance platform.”¹ India and China gained prominence during this time for their generous contributions in helping to bail out affected countries.

Today, the G20 is the world’s most powerful economic body. Its members combine over 80% of world GDP, 75% of global trade and 60% of the population. Its core agenda is the world economy and global economic leadership. Post 2008, it is also focused on creating rules and institutions that will prevent another financial crisis. Now, with the existing multilateral order like the United Nations (UN) and the World Trade Organization (WTO) weakening and its authority contested, other pressing global issues are also discussed at the G20.

As the Organisation of Economic Co-operation and Development (OECD) describes it, “the G20 has organically evolved, transforming itself from a global firefighter into a unique international forum to address long-term structural challenges.”²

Emerging economies like India describe the G20’s role in clearly financial and futuristic terms. The Ministry of External Affairs, India, says the objective of the G20 is “to create a new international financial structure,” coordinate policy between members to “achieve global economic stability, sustainable growth” and “promote financial regulations that reduce risks and prevent future financial crises.”³

The G20 has no secretariat and functions through a revolving presidency chosen through rotating regional groups. The closest to a secretariat of the G20 is the OECD, which refers to itself as “an active partner and strategic advisor” to the G20.⁴ It contributes significantly, by

helping to define the agenda and developing narratives, providing policy options and preparing evidence-based analysis and reports, forging consensus across the membership around Presidency’s priorities, strengthening the global governance by setting global standard on key issues, ensuring that legacies and commitments from previous Presidencies are monitored and delivered.⁵

Related entities, like the Inter-Agency Group on Economic and Financial Statistics Non-government bodies, also study, prepare, analyse and record the G20’s confabulations. Outside of the OECD, the other institution that significantly does this is the G20 Information Centre at the University of Toronto.⁶

Each country assigns a “Sherpa” to represent itself in the G20 collaborations that lead up to the leaders’ summit. The OECD has its own permanent G20 “Sherpa” or representative to the G20.

Currently, the leadership of the G20 is managed under a “troika” system made up of the immediate past, current president and next host countries. In 2021, the troika will be Saudi Arabia (immediate past president), Italy (current president) and Indonesia (next host).

Countries define the priorities of their presidency early, usually a year in advance. In defining their agendas, countries work closely with their chambers of commerce, enterprise forums, businesses, academic institutions and policymakers. Research papers are circulated a year in advance. The G20 chairs create catchy phrases and often highlight some of their domestic agendas.

For instance, Turkey defined the priorities of its presidency on the principles of Inclusiveness, Implementation and Investment. It included the development of Micro, Small and Medium Enterprises (MSME) through Low-Income Developing Countries (LIDC) participation in global supply chains.⁷ This is Turkey’s strength. Turkish MSMEs contribute over 50% to the country’s GDP and provide over 70% of employment, making the sector a significant player in the country’s economic agenda.⁸

Germany’s preoccupation with the issue of economic and political migrants – it accepted an estimated 1 million refugees⁹ from across Syria, Iraq and Africa in 2015 – resulted in a focus on migration and refugee flows from Africa.¹⁰ It became the G20’s Compact with Africa¹¹

In 2021, Italy’s agenda is People, Planet and Prosperity.¹² It will carry forward a new agenda item for the G20, i.e. culture or the Cultural Economy, which was discussed on the side lines of the November 4 meeting¹³ hosted by past president of Saudi Arabia. It reflects the Saudi Kingdom’s on-going opening up of its society and country to the world, as also Italy’s dominant economic sector, tourism, on which it will depend for growth and employment, as the pandemic recedes.

The G20 Presidency year closes with the annual leaders’ summit – a prestigious event where the leaders of the G20 countries and their entourage including ministers, central bankers and diplomats – descend on the host country for a giant, high-profile family meeting of consensus seekers.

Table 1.1 List of G20 presidents and summit venues since 2008

Year	Date	G20 Presidency	Summit Venue
2008	14–15 November	Brazil	Washington, DC, USA
2009	1–2 April	United Kingdom	London, UK
24–25 September	United Kingdom	Pittsburgh, Pennsylvania, USA
2010	26–27 June	Republic of Korea	Toronto, Canada
11–12 November	Republic of Korea	Seoul, Korea
2011	3–4 November	France	Cannes, France
2012	18–19 June	Mexico	Los Cabos, Mexico
2013	5–6 September	Russia	St Petersburg, Russia
2014	15–16 November	Australia	Brisbane, Australia
2015	15–16 November	Turkey	Antalya, Turkey
2016	4–5 September	China	Hangzhou, China
2017	7–8 July	Germany	Hamburg, Germany
2018	30 November–1 December	Argentina	Buenos Aires, Argentina
2019	28–29 June	Japan	Osaka, Japan
2020	21–22 November	Saudi Arabia	Virtual Summit
2021	30–31 October	Italy	Rome, Italy
2022	October	Republic of Indonesia

Source: Collated by Gateway House from various sources.

1.2 Who leads the G20

Within countries, three ministries are central to G20 participation. The head of government – the Prime Minister’s/President’s office – actively leads the global economic go...