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27 Jul 2023
GS Paper 2
International Relations
Day 10: Despite being a global organization, G20 is yet to be an inclusive and efficient organization. What reforms need to be taken in the functioning and structure of G20 to make it more relevant for the time? (250 words)
- In Introduction write about G20 and its presidency in India.
- Elucidate how the G20 organization has yet to be inclusive with representation with the emerging economies like Africa and suggest ways to make it more efficient and inclusive.
- Conclude suitably.
Answer:
The G20 was founded in 1999 after the Asian financial crisis of 1997-98 as an informal forum for the Finance Ministers and Central Bank Governors of the most important industrialized and developing economies to discuss international economic and financial stability.
The G20 Summit is held annually, under the leadership of a rotating Presidency. The forum initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter-alia include trade, climate change, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption.
- India holds the Presidency of the G20 from 1st December 2022 to 30th November 2023.
However, there is a growing recognition that the G20 needs reforms to enhance its inclusiveness and efficiency in order to address the complex challenges of the modern world. Several key reforms can be considered to make the G20 more relevant for the current times.
- Enhance the inclusiveness of the G20: The organization represents the world's major economies, but it does not adequately include smaller and developing nations, which are often affected by the decisions made by the G20. To address this, the G20 should establish a more structured and formalized mechanism for engaging with non-member countries and international organizations. E.g., Countries from Africa.
- Strengthen the institutional framework and governance of the G20: The G20 operates as an informal forum that relies on consensus and voluntary compliance. While this allows for flexibility and adaptability, it also limits the accountability and legitimacy of the G20. It should have a more formal structure and rules, such as a permanent secretariat, a charter, a dispute settlement mechanism, and a monitoring and evaluation system. These could enhance the coordination, implementation, and follow-up of the G20 decisions and commitments.
- Focus on the most pressing and relevant global issues. The G20 was established in response to the 2008 financial crisis, and mainly focused on financial regulation and stability. Since then, the G20 has expanded its scope to cover a wide range of topics. However, this also means that the G20 risks losing its focus and effectiveness by trying to address too many issues at once. G20 should prioritize the most urgent and common challenges that require collective action and multilateral cooperation.
- Broader Engagement: The G20 should enhance its engagement with civil society and non-governmental organizations (NGOs). Inclusion of diverse perspectives from civil society can provide valuable insights and expertise to inform the G20's decision-making process. Creating platforms for dialogue and consultation with NGOs and civil society organizations can help ensure that the G20's actions are aligned with the interests and aspirations of the broader global community.
The G20 needs to undertake significant reforms to become a more relevant and effective organization for the current times. By enhancing its inclusiveness, accountability, sustainability focus, and engagement with civil society, the G20 can better address the complex challenges facing the world and ensure that its decisions have a positive impact on the global community.
