India Presidency: Everything You Need To Know About G20

The G20 summit is here and with all the buzz around it, there's a lot more information you must know about the agendas it's setting especially now that India holds the presidency this year. G20 is a group of 20 nations coming together to discuss international economic issues, advancement, and finance. However, in the later years post the inception of G20, it extended its domain inter alia outside of finance to health, food security, climate change, disaster management, corruption, development, trade, tourism, and education. 

This time around, India holds the Presidency of G20 which commenced on December 1, 2022, and will extensively go on until November 30, 2023. 

What is G20?: Structure 

The G20 was founded for the first time post the Asian financial crisis in 1999. The forum welcomed Central Bank Governors and Finance Ministers to discuss the global financial and economic challenges.

The 2007 global financial crisis saw G20 being elevated to a new stature. It opened itself up to welcome Heads of Government from different nations to its discussions.

In 2009 it earned the label of being a premier forum for the purpose of international economic cooperation.

The G20 consists of 19 nations and the European Union. The 19 nations are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the UK, and the USA. These are the permanent member nations of the G20.

Not all nations of the world get to be a part of G20. Nations with the most significant global economic impact form the permanent member nations of the G20. The G20 countries contribute to 85% of the world's GDP, 75 percent of the world's trade, and represent two-thirds of the global population.

Every year the country with the G20 Presidency decides on a list of guest countries who attend as participants at the G20. This year India has invited Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain, and UAE as its guests.

The country with the Presidency also has the opportunity of inviting Guest International Organisations. This year Asian Development Bank (ADB), Coalition For Disaster Resilient Infrastructure (CDRI), and International Solar Alliance (ISA) has been invited by India as its Guest IOs. The regular IO attendees are the UN, WHO, WTO, IMF, WB, ILO, FSB, and OECD. Additionally, this also includes the Chairs of Regional Organisations such as AUDA-NEPAD, ASEAN, and AU.

How Does The G20 Work? 

The country with the Presidency leads the G20. However, it is supported by two other nations. One of the two nations must have had the Presidency last year and the other nation is expected to assume Presidency the following year. This arrangement is called the Troika. The G20 each year is governed by the troika. This year's troika consists of Indonesia, India, and Brazil.

The country with the G20 Presidency is selected on a rotational basis and depends on the consensus of other member nations for the nomination of a member for the G20 Presidency.

The country with the Presidency leads the G20 Summit for a year before passing it on to the next nation assuming the Presidency.

The G20 begins deliberations on two of its most important workstreams. They are the Finance Track and the Sherpa Track. A third workstream called Engagement Group is led by non-government participants who contribute to policy making and the G20 Leaders.

The Engagement Group works with think tanks, civil societies, youth, businesses, women, labour, etc that contribute to the G20 Summit.

The Finance Track is led by the Ministry of Finance of Nations composed of the  Central Bank Governors and Finance Ministers. The Finance Track of the G20 discusses globally significant macroeconomic issues such as debts, financial architecture, taxation, financial reforms, inclusion, etc.

The Sherpa Track is led by Sherpas of the respective member nations. The Sherpas directly report to the Heads of the States of their respective nations. The Sherpa Track is mostly concerned with non-financial discussions revolving around agriculture, anti-corruption, culture, development, education energy, trade, tourism, health, digital economy, etc.

The Sherpas oversee G20 negotiations and coordinate the G20 Summit.

The Working Groups of both the Sherpa and the Financial Track see participation from guest countries and international organisations along with ministries from the permanent nations.

Suggested reading: What Is G20 summit in Bali And What Is Agenda For Summit?