India will take over the presidency of G20 on December 1. India will hold the presidency of the G20 from December 2022 to November 2023 next year. Around 200 meetings are going to be held in 32 sectors during India’s presidency of G20. Union Finance Minister Nirmala Sitharaman told Dhanam Magazine that the G20 presidency is a good example of the country moving forward in the economic field.
The center is planning to organize programs in all states as part of the G20 summit. The finance minister also pointed out that this is an opportunity for the states to showcase their commercial and trade potential at the global level. Vasudaiva Kudumbakam or One Earth One Family One Future is the theme of this year’s G20.
G20 led by superpowers
After the Second World War, many organizations were formed as part of international cooperation. G20 can be described as one of the last such organizations. The G20 began with the G7 or Group of Seven, a group of economic powers that includes Canada, France, Germany, Italy, Japan, the UK, and the USA.
The idea of an association of countries in different parts of the world beyond the G7 was put forward in the early 90s when Paul Martin, who held the position of Prime Minister of Canada, was the Minister of Finance. Paul Martin pointed out the importance of a larger organization in anticipation of the economic crisis that occurred in 1994 in Mexico, which is not a member of the G7, which affected Canada. But then he did not get enough support from the G7.
But the economic problems in Asian countries in 1997 and the consequences of the Russian financial crisis in 1998 became enough reasons for the G7 countries to feel fond of Paul Martin’s idea. Paul Martin reintroduces the idea to then US Treasury Secretary Lawrence Summers. Paul Martin later said that the two of them wrote the names of the G20 countries on a piece of white paper. With the approval of the G7 countries, the G20 was formed in Berlin in 1999. The first meeting of G20 was held on 15-16 December 1999. Paul Martin was the first president.
G20 that supported the economy
Coming to the G20 members, the G20 consists of 19 countries and the European Union. These 19 countries are Australia, Canada, Saudi, US, India, Russia, South Africa, Turkey, Argentina, Brazil, Mexico, France, Germany, Italy, UK, China, Indonesia, Japan, South Korea. Apart from them, 11 permanent guests like African Union, ASEAN, Spain, World Bank, UN and others are part of G20. Nigeria, an African country, was supposed to become the 20th member of the G20. But due to internal problems, Nigeria could not become a part of the alliance. In an interview given three years ago, Paul Martin said that he regretted not being able to make Nigeria part of the G20. He also pointed out that Africa does not have enough representation in the organization. South Africa is the only country from Africa to join the G20.
Although formed in 1999, the G20 emerged as an important group at the international level only after 2008. Initially, the G20 functioned as an economic deal-making body of finance ministers and central bank governors. After the economic recession of 2008, under the leadership of US President George W. Bush, it became the group of world leaders that we see today. The G20 group then played a major role in keeping the protectionism adopted by countries to protect their own economies from turning into a depression following the economic recession. In 2009, the heads of the G20 countries met in London with the goals of stability-growth-jobs in mind.
After that, the G20 summit is held continuously here. Each year the chairmanship rotates according to the order of member states. The G20 does not have a permanent secretariat. The agenda of the G20 summits will depend on the countries holding the presidency. In 2002, India hosted the G20 Finance Ministers and Governors meeting.
If we talk about the influence of G20 on the global level, it will probably be more than the United Nations. If the G20 countries join, it will account for two-thirds of the world’s population. The G20 countries control 75 percent of global trade and contribute three-quarters of global GDP.