G20 UPSC

G20 (Group 20)

What is G20 ?

G20 is an international forum that brings together the world's leading industrialised and emerging economies.

Origin of G20

1997-1999 Asian Financial Crisis :-

This was a ministerial-level forum which emerged after G7 invited both developed and developing economies. The finance ministers and central bank governors began meeting in 1999.

Amid 2008 Financial Crisis :-

The world saw the need for a new consensus building at the highest political level. It was decided that the G20 leaders would begin meeting once annually.

To help prepare these summits, the G20 finance ministers and central bank governors continue to meet on their own twice a year. They meet at the same time as the International Monetary Fund and The World Bank.

Who are members of G20 ?

1) Canada,

2) USA,

3) France,

4) Germany,

5) Italy,

6) United Kingdom,

7) Argentina,

8) Brazil,

9) Mexico,

10) Turkey,

11) Australia,

12) Japan,

13) Saudi Arabia,

14) Russia,

15) China,

16) India,

17) South Africa,

18) South Korea,

19) Indonesia,

20) European Union.

Note :- 

The members are divided into 5 groups consisting of a maximum of 4 states for choosing president.

1) Group 1 

(Australia , Canada , USA , Saudi Arabia)

2) Group 2 

(India , Russia , South Africa , Turkey)

3) Group 3 

(Argentina , Brazil , Mexico)

4) Group 4 

(France , Germany , Italy , United Kingdom)

5) Group 5 

(China , Indonesia , Japan , South Korea)

About G20 :

• It act as a forum for the government and central banks governors from 20 countries.
• G20 does not have permanent office or employees.
• It is an informal Group

Structure and Functioning of G20 :

G20 presidency rotates annually (The presidency rotates between each 5 groups).

There are 2 working channels of G20 :-

1) Finance Channel

It covers meeting between Finance ministers and central bank presidents.

2) The Sherpas Channel

It covers non-financial issue's such as political commitment , the fight against corruption , development , gender equality , trade and energy.

Quick Notes :-

• 15th G20 Summit was held in Nov 21-22 , 2020 in Saudi Arabia capital city 'Riyadh'.

• 14th G20 Summit was held in Osaka (Japan)
• Osaka track on digital economy (rejected by India) aims to legitimise the informal plurilateral negotiations on digital trade that were never approved at WTO.

• 1st time India will host G20 summit in 2022.