Thursday, 25 August 2011

India & G-20.

The emergence of G-20 group and  its continuous strengthening highlights the rise of multilateralism in the management of global financial and economic order. This goes well with the policy and position of India. India has been a founder member of G-20 groups. It has played an active role in the summit meetings and other deliberations of G-20. The membership of G-20 has enabled India to play a major role in the global financial and economic matters, which is commensurate with the sustained economic growth and size of the country. The participation of G-20 is likely to boost India’s global image as a responsible emerging power. However, one of the major achievements of G-20 is the reform of international financial institutions, which has been a longstanding demand of India for many years. India being a major developing country, has the opportunity to represent the interest of other developing and Least Developing Countries at the global level through its active participation in a global financial forum like G-20. The active role played by India is likely to strengthen its claim and opportunity to get effective representation in other international bodies like the UN Security Council. India can also utilise G-20 as an effective forum of North-South dialogue.

G-20 facts :

There are striking similarities between G-8 and G-20 as far as their origin is concerned—both originated in the wake of financial or economic crisis. It should be recalled that G-8 was originated in 1975 in the wake of oil crisis as an aftermath of Arab-Israel war, 1973. Similarly the G-20 was originated in 1999 in the wake of Asian financial crisis, 1997. Both were concerned with the management of emerging crisis.

The G-20 originated as a forum of Central Bank Governors and Finance Ministers of 20 emerging economies in 1999. Its first meeting was organised in Berlin (Germany) in December, 1999. These Governors and Ministers used to meet once in a year.

As the global financial crisis deepened in 2008, the G-8 was found inadequate to manage the crisis. Hence, G-20 ministerial meeting was elevated to summit format in 2008. G-20 summits are held twice in a year. The summit meetings so far held are give below:-

   No of Summit          Place                   Country             Date
Ist              Washington              U.S.A              Nov. 2008      
IInd                London                    U.K              April. 2009
IIIrd             Pittsburg               U.S.A             Sep. 2009
IVth               Toronto                Canada             June. 2010
Vth                  Seoul                   S.Korea             Nov. 2010

VIth and VIIth summits are to be held France(2011) and Mexico(2012).

It should be noted that from the year 2011 onwards, the G-20 summit shall be held at annual basis. During the IIIrd summit held at Pittsburg in Sept. 2009, it was decided that G-20 would replace G-8 as the main forum of global financial and  economic consultation.

The G-20 consists of 20 members. These are 19 countries and one regional organisation- European Union. It should be noted that by Lisbon treaty, 2007, the European Union has assumed a separate legal identity and is represented as single entity at various international forum. The 19 members countries of G-20 are:- Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States of America.

The G-20 has so far not evolved any formal organisational structure. However, the work is carried out through the following bodies.

Summits consists head of government of member countries. It is the highest decision-making body of G-20. The personal representative of leaders are known as ‘ Sherpas ’.

Meeting of Finance Ministers and Central Bank Governors of member countries. It meets once in a year and prepares agenda of summit meetings.

Working Groups and expert Groups. These groups are established when need to support the works of summit leaders, finance Ministers, central Bank Governors.

So far working groups and three Expert groups has been appointed to carry on the work of G-20.

The four working groups are :
On framework of strong, sustainable balanced growth.
On Anti-corruption (established by Toronto summit).
On Development (established by Toronto summit).
On International Monetary Fund Quota and Governance Reform.

The three expert groups are :- On Financial safety, On Financial inclusion and On Energy.

The work of G-20 is also supported by the key international financial and economic organisations such as World Bank, IMF, OECD (organisation of Economic and Development),  ILO (International Labour Organisation), WTO (World Trade Organisations) and United Nations. It should be noted that the representative of IMF and World Bank take part in the summit meetings of G-20.

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