Syllabus
GS Paper 2 – Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Context
G20 Leaders’ Summit 2023 concluded in Rio de Janeiro
Source
The Hindu| Editorial dated 30th November 2024
How Brazil exposed the G20 crisis
The G20 Leaders’ Summit 2023 concluded in Rio de Janeiro under Brazil’s presidency with a focus on building a just world and a sustainable planet. Despite a joint declaration, the summit revealed deeper challenges facing the G20, particularly the reluctance to genuinely integrate Africa into global decision-making, highlighted by the forum’s failure to rename itself to G21 after the African Union was included as a permanent member.
The summit also exposed diplomatic rifts over global issues like climate change, poverty, and inequality, calling into question the future cohesion and relevance of the forum.
Geopolitical and Diplomatic Tensions
- Absence of Key Leaders: The summit was marked by the absence of Russia’s President Vladimir Putin and Saudi Arabia’s Crown Prince Mohammed bin Salman. The Saudi Crown Prince’s cancellation fueled speculations about the lack of unity within the group.
- Ideological Differences: The final declaration of the summit faced opposition from Argentina due to President Javier Milei’s ideological opposition to the sustainable development agenda, as well as welfare spending and social media regulation.
- Criticism from Western Leaders:
- French President Emmanuel Macron voiced concerns about the G20’s effectiveness in addressing global crises.
- Germany, the UK, and Canada criticized the weak language on the Ukraine war, pointing to divergent geopolitical interests.
- Support for Palestine: The G20 affirmed Palestine’s right to self-determination and advocated for a two-state solution with Israel.
Launch of the Global Alliance Against Hunger and Poverty (GAAHP)
- Objective: One of the key outcomes of the summit was the launch of the Global Alliance Against Hunger and Poverty (GAAHP) , supported by 148 signatories, including 82 countries, international organizations, financial institutions, and philanthropic bodies.
- The initiative aims to lift 500 million people out of hunger and poverty by 2030 through targeted social protection measures.
- Key Initiatives:
- cash transfers,
- school meals,
- microfinance access, and
- water supply improvements.
- Concerns over Governance:
- NGOs like Oxfam have raised concerns about the transparency in the governance of GAAHP, especially regarding private-sector control over policy-making and the inclusion of civil society voices.
- The success of this initiative will largely depend on these factors.
- Broader Membership: The GAAHP is set to be an independent platform, open to broader membership beyond the G20.
Addressing Global Inequality and Progressive Taxation
- Commitment to Tackling Inequality:
- The G20 declaration acknowledged that inequality both within and between countries is at the heart of many global challenges.
- The declaration committed to addressing these inequalities through social, economic, and political inclusion of marginalized groups.
- Progressive Taxation:
- One of the standout proposals was the endorsement of progressive taxation to tax ultra-high-net-worth individuals.
- This was seen as a direct response to global demands for tackling extreme wealth concentration.
- Opposition to Wealth Tax:
- While anti-poverty activists celebrated the proposal as a historic move, Germany, the US, and Argentina opposed the wealth tax, indicating a divide between Western countries and emerging economies on addressing inequality.
- Global Support:
- Despite opposition from some countries, the proposal was lauded by activists and civil society organizations as an essential step toward reducing the global wealth gap, poverty, and environmental degradation.
Reform of Global Governance and Representation
- UNSC Reform: The G20 committed to transformative reforms in the United Nations Security Council (UNSC) to ensure greater representation of countries from the Global South, especially Africa, Asia-Pacific, Latin America, and the Caribbean.
- International Financial Institutions: The G20 also reiterated its support for reforming the international financial architecture, including institutions like the World Bank, Multilateral Development Banks, and the World Trade Organization (WTO) .
- These reforms are seen as necessary to address the growing demands of the Global South for fairer and more balanced governance.
- Long-standing Demand for Reform: The call for reform of global governance institutions has been a consistent demand from emerging economies, signaling their push for greater influence in decision-making processes.
Climate Finance and the Debt Crisis
- Commitment to Climate Finance:
- One of the most anticipated commitments was the G20’s pledge to increase climate finance from billions to trillions, aimed at helping developing countries tackle climate change.
- However, the lack of a clear roadmap and detailed funding commitments raised concerns about the effectiveness of this initiative.
- Debt Crisis: The G20 reaffirmed its commitment to addressing the debt crisis facing low- and middle-income countries through the existing Common Framework.
- However, as seen in the case of Zambia, this framework has often failed to provide meaningful relief, leaving countries in a cycle of economic instability.
- Flawed Debt Relief Mechanisms: The debt relief mechanisms endorsed by the G20 have been criticized for their limited effectiveness and inability to offer lasting solutions to the growing debt burden on developing countries.
Conclusion
The G20 Summit’s lack of coherence on key issues, such as the Ukraine war, climate finance, and debt relief, calls into question the long-term viability of the G20 as an effective forum for global governance. In a world of intersecting crises, it may be time to reassess the relevance and effectiveness of informal clubs like the G20 in shaping global policy and ensuring equitable representation for all nations.
Related PYQ
‘Virus of Conflict is affecting the functioning of the SCO’. In the light of the above statement point out the role of India in mitigating the problems. [ UPSC Civil Services Exam – Mains 2023]
Practice Question
Discuss the role of Global South in shaping contemporary global governance and its challenges in the current geopolitical landscape? [150 words]
Guidelines for Answering the Question
- Introduction:
- Define Global South: Countries in Africa, Latin America, Asia-Pacific, and parts of Eastern Europe that are generally less economically developed.
- Briefly mention the evolving role of the Global South in global governance, especially after the Cold War and the rise of emerging economies.
- Body:
- Highlight economic growth (e.g., BRICS, India, China) and political influence in organizations like UN and G20.
- Discuss the growing influence of the Global South in shaping global policies.
- Mention the need for reforms in global governance structures to ensure equitable representation.
- Conclusion:
- Conclude with the idea that multilateral cooperation and addressing challenges like inequality will enhance the Global South’s ability to shape the global order.