G-20 Summit

G-20 Summit

Introduction:

·         G-20 summit is a forum for international cooperation between the most advanced and emerging economies.            ·         It is a meeting that concentrates on the most important aspects of international cooperation and financial agenda.

The Origins and Evolution of the G-20:

·         It was originated due to the financial crises occurred during 1990s in the emerging economies.            ·         In 1999, the financial ministers and the central bank governors of the developed and the emerging economies met in Berlin, Germany to discuss the key issues for global economic stability. This is then the finance ministers started meeting annually.            ·         In 2008, during economic global crisis the summit was held in the Washington D.C to discuss the causes of the global economic and financial crisis and to implement an action plan around three main objectives. 1.      Restoring global growth. 2.      Strengthening the international financial system. 3.      Reforming international financial institutions.

Who are the members of the G-20?

·         The G-20 includes 19 countries plus the European Union.           ·         These include both developed and the developing nations           ·         The summit is held for two main reasons that transform the international relations 1.      The role of the increasing influence of the emerging economies on the political and economic affairs. 2.      The collective response from all the members to find the innovative forms of cooperation to meet the new global challenges.           ·         The 19 countries are Argentina, France, Japan, South Africa, Australia, Germany,   Mexico, Turkey, Brazil, India, Republic of Korea, United Kingdom, Canada, Indonesia, Russia, United States, China, Italy, Saudi Arabia and the European Union.           ·         The G-20 contribution in the world economy is around 90% of global GDP, 80% of global trade and two-thirds of the world’s population.

What are the objectives of the G-20 Summit?

1.      The Policy coordination between the countries to achieve the global economic stability         and sustainable growth.              2.      Promote financial regulations that reduce risks and prevent future financial crises.              3.      To create a new international financial architecture.

Preparatory process of Summit:

·         The Preparatory process is conducted through the Sherpa and the Finance tracks which prepare and follow up on the issues and commitments adopted in the leaders’ summits.           ·         The Sherpa’s track focuses on the non-economic and non-financial issues (like development, terrorism, anti-corruption etc., ) and also addresses internal aspects of the summit like procedural rules for the G-20 process.           ·         The Financial track focuses on the economical and financial issues. These issues include providing economic solutions to the current economic problems, economic stabilization and structural reforms, increasing international coordination for crisis prevention, correction of external, fiscal and financial imbalances, providing resources to increase global liquidity and strengthening the international financial system.                o   The Financial Track system is organized as :                    1.      Framework for Strong, Sustainable and Balanced Growth Working Group (co-chaired by Canada and India).                    2.      Financial Regulation.                    3.      Financial Inclusion, Financial Education and Consumer Protection.                    4.      International Financial Architecture Working Group (co-chaired by Australia and Turkey).                    5.      Energy and Commodities Markets Working Group (co-chaired by Indonesia and UK).                        a.      Commodities Markets Subgroup (co-chaired by Brazil and UK)                        b.      Energy and Growth Subgroup (co-chaired by Korea and US)                    6.      Disaster Risk Management.                    7.      Climate Finance Study Group (co-chaired by France and South-Africa).            ·         In addition, agenda for the summit is discussed through the organization of the meetings such as meetings of the finance ministers, deputy-finance ministers and the governors of the Central Banks.

G-20 Summit 2012:

·         The Mexico hosted the Presidency of annual G-20 summit in 2012. This was the second emerging country and the first in Latin America to host the summit.            ·         Prior issues of the Mexican G-20 summit are:                        1.      Economic stabilization and Structural reforms as foundations for growth and employment.                        2.      Strengthen the financial system and foster financial inclusion to promote economic growth.                        3.      Improving the international financial architecture in an inter-connected world.                        4.      Enhancing food security and addressing commodity price volatility.                        5.      Promoting sustainable development, green growth and the fight against the climate change.             ·         The guest countries invited to the summit are: Spain(permanent member), Benin, Cambodia, Chile, Colombia, Ethiopia.             ·         The International Organizations that participated are: IMF (Permanent basis, International Labor Organization, The World Bank (Permanent member), The Organization of Economic Cooperation, The Financial Stability Board, The World Trade Organization, Food And Agricultural Organization, The United Nations.            ·         The Working Groups: 1.       The Sherpa’s Track of 2011-12 issues include: Employment and Social Dimension of Globalization, Food Security, Development, Anti-Corruption and Multi-lateral Trade. 2.      The Financial Track of 2011-12 issues include: Framework for Growth, Strengthening the International Financial  System, International Financial Architecture, Energy and Commodity Markets, Climate Finance,