A new global vision for G20

Source: The post is based on the article “A new global vision for G20” published in The Hindu on 11^th August 2022.

Syllabus: GS 2 – Important International institutions, agencies and fora- their structure, mandate.

Relevance: About the necessary reforms for G20.

News: The role of the G20 themes and focus areas lacks vision.

About the role of G20

The primary role of the G20 accounts for 95% of the world’s patents, 85% of global GDP, 75% of international trade and 65% of the world population.

The G20 plays an important role such as, a) Shaping and strengthening global architecture and governance on all major international economic issues, b) recognising that global prosperity is interdependent and economic opportunities and challenges are interlinked.

What does India want to change in G20?

According to the Ministry of External Affairs, India will strengthen international support for priorities of vital importance to developing countries in diverse social and economic sectors. This range from energy, agriculture, trade, digital economy, health and environment to employment, tourism, anti-corruption and women empowerment, including in focus areas that impact the most vulnerable and disadvantaged.

What are the challenges faced by multilateral organisations?

1) Multilateral commitments on aid and trade are faltering, 2) The role of the United Nations and the World Trade Organization in securing cooperation between donor and recipient country groups is losing centrality. 3) There are now three socio-economic systems the G7, China-Russia, and India and others, 4) The Ukraine crisis is expanding the influence of the trade and value chains dominated by the U.S. and China.

What are the opportunities the G20 can utilise?

1) The G20 can harness the potential of the digital-information-technology revolution by redefining digital access as a “universal service.”

2) The world can build on the global consensus in the Vienna Declaration on Human Rights 1993. There is a growing recognition of economic and social rights. So, ensuring adequate food, housing, education, health, water and sanitation and work for all should guide international cooperation.

3) The global agenda has been tilted towards investment, whereas science and technology are the driving force for economic diversification. This can be corrected.

4) Space is the next frontier for finding solutions to problems of natural resource management. Open access to geospatial data, data products and services and lower costs of geospatial information technology facilities do not require huge financial resources.

What reforms are needed to make G20 fully functional?

Firstly, G20 needs a new conceptual model seeking agreement on an agenda limited to principles rather than long negotiated moderating text. For instance, the Rio Declaration of 1992 is an appropriate model which incorporated three major priorities as part of a global agenda.

Secondly, India should seek collaboration on limited focus areas around science and technology, building on resolutions of the United Nations General Assembly (UNGA) and other multilateral bodies.

Thirdly, the presumed equality, recognised in the case of climate change, needs to be expanded to other areas with a global impact redefining ‘common concerns’.

Fourthly, emerging economies are no longer to be considered the source of problems needing external solutions but the source of solutions to shared problems.

Lastly, a Global Financial Transaction Tax, considered by the G20 in 2011, needs to be revived to be paid to a Green Technology Fund for Least Developed Countries.