Dr. Arvind Kumar*
India’s G20 presidency has been regarded by experts across the world as an exceptional and unprecedented opportunity with immense scope and potential. With the motto of ‘Vasudhaiva Kutumbakam’, it has embarked on the year-long journey of the G20 presidency. Indeed, there is an immense opportunity for steering international coordination towards economic stability and prosperity, which is in general over-arching goal of the G20 organisation. For the Presidency, the country’s leadership has already committed itself to exploiting the linkages between economic growth, gender equality, peace, and security and the use of technological innovations for universal benefit. The bloc represents economies that account for over 80% of global GDP, about 75% of its commerce and 60% of the population. But tensions among the grouping’s members have been on the rise over the Ukraine conflict, trade disputes and soaring prices of food and fuel worldwide, among other problems.
The agenda of inclusive growth is well-manifested in the priorities set by India’s presidency. Discussions ranged from Green Development, Climate Finance & LiFE, Accelerated, Inclusive & Resilient Growth, Technological & Digital Public Infrastructure, Health, Business, Youth Multilateral Institutions for the 21st century, and Women-led Development. It inculcated the culture of collective action, coordination and consensus building while strengthening multilateralism. Therefore, democratizing the international institutions by bringing reforms in the WTO, WHO and other UN bodies is one of the top priorities for achieving multilateralism. India is deftly adjusting itself to the decline of the West and greeting the emerging multipolarity and multilateralism.
Next year there are elections in India; it’s also keen for a permanent seat in the United Nations Security Council, It wants to become the third largest economy in the world. Will India be able to take advantage of this presidency? Is there sufficient common ground among the world’s largest economies to allow for specific achievements? With all the appreciation and hoopla it is a pertinent question whether the G20 meetings was able to produce transformational results that measurably advance its members’ shared interests?
Polarisation of powers
In the historic transition underway in the world order, India views the Global South as its natural constituency. The rich nations promised an interconnected world, however now we actually see a world with higher walls. There are a host of unkept promises by the rich countries, the debris of which is lying all around — the burden of developing climate resilience, industrialisation without carbonising, for instance all at the same time, while managing disruptions and uncertainties in global supply chains. Whether it is the impact of the Covid pandemic, terrorism, ongoing conflicts, debt crises and the triple planetary crisis of climate change, biodiversity loss and pollution, search for solutions do not give due weight to the needs and aspirations of the Global South.
Therefore India ensured that its Presidency gathers that voice, the perspectives, the priorities of the Global South, and articulates that clearly in its debates. The elites were led to believe that its interests are best served by acting as a ‘bridge.’ But it has become crystal clear from Washington’s confrontation with Russia (and China) that there is no willingness for a broad-based equitable world order. G7 is once again imposing its diktat — even on the global oil market. Meanwhile, the epochal confrontation in Ukraine exposed that the ‘rules-based order’ in reality translates as the West’s hegemonic position in the world.
The G20 is taking place at very unprecedented times of polarisation. Ahead of the summit, US President Joe Biden and Chinese President Xi Jinping have been mobilizing their respective allies and partners in the international arena and regional blocs. America’s alliances are heavily built around militarization, while China’s alliances are focused on economics and trade. The competition between the two countries has evolved to feature a weave of overlapping alliances. Meanwhile, Russian President Vladimir Putin is preoccupied with his war in Ukraine and the fallout from the mutiny against him carried out by the commander of the Wagner Group mercenary forces, Yevgeny Prigozhin. PM Modi, meanwhile, is carefully and strategically weighing offers coming from the leaders of the world’s three major countries.
Apart from all the discussions on business, tourism, environment, youth, digital, culture, health etc. a very important issue was sorely missing from the G20 discussions barring one or two brief discussions-Water. As India wants the Delhi summit to concentrate on sustainable development,
Water is deemed a dealmaker for the implementation of Sustainable Development Goals (SDGs). Water runs across the entire 2030 agenda having a cross-sectoral impact. However, contrary to its centrality and importance for the well-being of people, planet, peace, and prosperity it was not given its deserving due importance at the G20 agenda and discussions. Power was centralized in few organizations and persons leading to exclusionary approach for multistakeholders instead of the inclusive approach India’s G 20 Presidency was based on.
The meetings of the various working groups concluded without reaching a tangible consensus. Developing countries in the G20 group demanded that the developed world should advance their net-zero targets by ten years, and commit themselves to become carbon neutral by 2040, again a demand that was not agreeable to all. Consensus eluded in the meeting of the finance working group as members failed to bridge their differences on Russia’s war in Ukraine.
Way Forward
The G20 should be restructured into a more effective policy cooperation group. For example, while the IMF and, in recent times, the ADB are the knowledge partners for the G20 finance track, the participation of OECD and the World Bank in the development track is much left to be desired, especially since climate policy governance and energy transition are key priorities that require changes in industrial and trade policies. The participation of the African Development Bank and other regional development banks can equally play an important role in shaping future discussions while simultaneously making G20 broad-based in its financial and development representation. The G20 remains a potent potential vehicle for progress because of the agenda’s cross-cutting nature. On the issues where the G20 can make a difference, India brings a weight to marshal and carry forward the discussion that few recent presidencies have had. Understandably, delivering structural solutions is not an easy challenge, as it necessitates consensus among G20 members on shared economic policy frameworks, as well as the consent of national parliaments for undertaking domestic policy reforms. All of these factors contribute to the expanding chasm between commitments and their implementation. Given the voluntary nature of G20 obligations, individual countries often do not implement necessary domestic policy reforms in accordance with their commitments. Given this harsh reality, there is an urgent need to moderate expectations of what has been achieved by the G20. It is of paramount importance that the promises made at the G20 are earnestly implemented and that the benefits reach the most vulnerable countries and communities. If the G20 does not offer innovative solutions to the world’s most pressing problems promptly, the rest of the world will continue to question its relevance and value.
*Editor, Focus Global Reporter
