Syllabus: Important International institutions, agencies and fora — their structure, mandate.
Context
- The 2025 G20 Summit concluded in Johannesburg, the first-ever held on African soil.
- A Leaders’ Declaration was adopted despite a U.S. boycott, marking a significant diplomatic outcome.
About the G20
- The G20 is the premier platform for international economic cooperation, representing 85% of global GDP, 75% of world trade, and two-thirds of global population.
- Comprises 19 major economies, the EU, and the African Union.
Evolution
- 1999: Formed after the Asian Financial Crisis for macroeconomic stability.
- 2008–09: Upgraded to Leaders’ Summit during the global financial crisis.
- Later expanded to issues such as health, climate, energy, development, and anti-corruption.
- Presidency rotates annually and is guided by the Troika (previous, current, next presidencies).
Functions
- Ensure macroeconomic stability and coordinated policy responses.
- Shape global norms on trade, finance, taxation, digital public goods, and energy.
- Mobilise finance for Sustainable Development Goals (Agenda 2030).
- Coordinate action on climate, debt relief, green transitions, and global inequality.
- Act as a forum bridging developed and developing economies.
Key Outcomes of the Johannesburg Summit
- Declaration adopted despite U.S. absence, reaffirming multilateral cooperation, climate commitments, and sustainable development.
- Strong focus on climate adaptation finance, renewable energy, and support for climate-vulnerable countries.
- Emphasis on debt restructuring and affordable financing, aligning with Africa’s and the Global South’s development agenda.
- Launch of the ACITI Partnership (Australia–Canada–India Technology & Innovation) for cooperation on AI, critical technologies, and clean energy.
- India’s proposals accepted: Traditional Knowledge Repository, Africa Skills Multiplier, Satellite Data Partnership, Health Response Team, and Drug–Terror Nexus Initiative.
- 2025–26 Troika: Brazil (past), South Africa (current), United States (incoming).
Challenges
- U.S. boycott highlighted geopolitical strains with South Africa.
- Disagreement on fossil-fuel phase-out, mirroring divides seen at COP30.
- Persistent divergence over the Ukraine war, weakening consensus.
- Developing countries flagged inequities in global financial architecture, high debt burdens, and insufficient climate finance.
- A protocol dispute over presidency handover underscored diplomatic sensitivities.
India’s Position
- Emphasised human-centric and equitable development, aligned with “Integral Humanism”.
- Positioned India as a leader in emerging technologies through the ACITI framework.
- Prioritised Global South needs, focusing on climate finance, traditional knowledge, skills, and digital public goods.
- Highlighted security concerns with a Drug–Terror Nexus Initiative targeting synthetic narcotics.
- Proposed Satellite Data Partnership and Critical Minerals Circularity for sustainable development.
Way Forward
- Strengthen multilateral consensus-building insulated from major-power rivalry.
- Prioritise climate finance, adaptation, loss-and-damage, and debt relief for developing nations.
- Institutionalise Africa’s voice within the G20 decision framework.
- Advance financial architecture reforms to ensure equitable representation and transparent debt systems.
Conclusion
- The summit demonstrated that effective multilateralism remains possible despite geopolitical tensions.
- A sustained focus on climate justice, equitable growth, and Global South priorities is crucial to preserve the G20’s relevance in shaping global stability and sustainable development.