African Union and the G20: Africa on the high table

Source– The post is based on the article “African Union and the G20: Africa on the high table” published in “The Indian Express” on 13th September 2023.

Syllabus: GS2- Regional and global groupings

Relevance- G20

News– Recently, the African Union was included as the new member of G20.

What is the significance of the inclusion of the African Union in G20?

The G20 now encompasses almost 80% of the global population, comprising 97 out of the United Nations’ 193 member countries. It also represents 88% of the world’s GDP and accounts for 79% of global trade.

This expansion effectively balances the existing grouping of 27 developed countries within the EU. It elevates the status and credibility of the G20.

It enhances the G20’s representativeness without making it cumbersome, as the AU will be represented by a single leader.

Africa is also abundantly rich in resources, including arable land, minerals, rare earth metals, and a youthful workforce.

It has been steadily growing and achieving economic and political integration. In 2018, it launched a Free Trade Area and adopted “Agenda 2063: The Africa We Want,” a comprehensive plan to transform the continent into a global powerhouse.

Why is inclusion in G20 beneficial for the African Union?

This inclusion provides Africa with a voice, participation, and leadership on the global stage. Its developmental, financial, economic, and environmental challenges and solutions can be frequently discussed.

Africans now have the opportunity to shape the agenda and outcomes.

Importantly, Africa is home to 33 out of 46 Least Developed Countries. It grapples with widespread poverty, conflict, political instability, climate challenges, environmental degradation, and financial instability.

Africa can seek support from the G20 in terms of global public goods, such as finance, technology, investment, and capacity-building.

Why admission of the African Union in G20 is a strategic masterstroke for India?

This decision had been pending for the past six years. Prime Minister Modi has earned the gratitude of Africa and has gained their trust.

This achievement will yield substantial benefits for India in terms of strengthening its partnership with Africa on multiple fronts. It includes strategic, political, economic, technological, trade, and people-to-people relations.

The inclusion of the AU in the G20 will facilitate closer partnerships and coordination within international bodies like the United Nations (UN), World Trade Organization (WTO), World Bank, and International Monetary Fund (IMF).

This is especially important in countering China’s efforts to influence African countries away from India’s proposed UN Security Council reform.

What is the importance of G20?

The G20 plays a vital role in the establishment of rules-based, orderly, and equitable economic, financial, and monetary systems, and strengthening multilateral institutions.

The G20 is committed to creating a more equitable playing field within multilateral systems for developing countries. It also initiates affirmative actions and measures to assist the most disadvantaged developing nations in overcoming their challenges.

Key components include the reform and funding of Multilateral Development Banks and the IMF, ambitious replenishment of the International Development Association (IDA), support for achieving SDGs.

It is also working for effective mobilization and provision of adequate concessional financing to low and middle-income countries, the Green Development Pact with commitments to green technologies, and financing for climate and a just transition to clean energy.