Group of Twenty (G20)

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Group of Twenty (G20)

Group of Twenty (G20)

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G20 is the premier forum for international economic cooperation and it plays an important role in shaping and strengthening global architecture and governance on all major international economic issues.
The G20 Summit is held annually, under the leadership of a rotating Presidency.
Its decisions are not legally binding, and member countries are not required to implement them.
19th G20 Summit:The 19th Heads of State and Government Summit of the Group of 20 (G20) took place in November 2024 in Rio de Janeiro, Brazil.
Next G20 Summit:The 20th G20 Summit will take place in Johannesburg, South Africa, on November 22–23, 2025.
- The theme for South Africa’s G20 Presidency is Solidarity, Equality, Sustainability.

Historical Background

Inception of G20
- 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.
Elevation to Leader’s Level
- The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for international economic cooperation”.

Agenda

The G20 initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter-alia include trade, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption.

Presidency

The G20 does not have a permanent secretariat or staff. Instead, the G20 Presidency rotates annually among the members and is selected from a different regional grouping of countries.
The 19 member countries are therefore divided up into five groups comprising a maximum of four countries each. Most of the groups are formed on a regional basis, that is countries from the same region are usually put in the same group.
Each year another country from a different group assumes the G20 Presidency. The countries in a group are each equally entitled to take on the Presidency when it is their group’s turn, though.
The G20 Presidency is responsible for bringing together the G20 agenda in consultation with other members and in response to developments in the global economy. To ensure continuity, the Presidency is supported by a “troika” made up of the current, immediate past and next host countries

Members

The Group of Twenty (G20) comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom and United States) and two regional bodies: the European Union and the African Union
The G20 members represent around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.

G20 Structure


Sherpa Track	It is headed by Sherpa who is the representative of the Leader. Focus areas: Socio-economic issues such as agriculture, anti-corruption, climate
Finance Track	Headed by the Finance Ministers and Central Bank Governors, who generally meet four times a year, with two meetings being held on the side-lines of WB/IMF meetings. Focus areas: Fiscal and monetary policy issues such as the global economy, infrastructure, financial regulation, financial inclusion, international financial architecture, and international taxation.

Why does the G20 Summit matter?

While the G7 is made up of rich countries, the G20 manages to get leaders from both developed and emerging economies around the table, representing a far broader range of views. It has been credited with reaching important agreements such as the trillion-dollar pledge in 2009 to help struggling economies during the global financial crisis.

India and G20 Summit

India held the Presidency of the G20 from December 2022 to 30 November 2023. (18th G20 Summit )
The summit was the first time India hosted the G20 Leaders’ Summit.
The theme of the summit was “Vasudhaiva Kutumbakam”, which means “The world is one family”.
Inclusion of AU as G20 Member
- During its G20 Presidency, India proposed granting the African Union permanent membership in the Group of Twenty. This historic proposal received unanimous support from all member countries. As a result, the African Union was officially inducted as a permanent member of the G20, marking a significant step toward inclusive global governance and strengthening the voice of the Global South in international decision-making.

19th G20 Summit ,Brazil

19th G20 Summit was held in Rio de Janeiro, Brazil, under the theme Building a Just World and a Sustainable Planet.
Key Outcomes
Social Inclusion and the Fight Against Hunger and Poverty
- Global Alliance Against Hunger and Poverty:
  - A major initiative launched under India’s presidency to intensify efforts in eradicating global hunger and poverty. It emphasizes multilateral cooperation to address food insecurity and promote equitable development.
- Global Coalition for Local and Regional Production, Innovation, and Equitable Access:
  - This coalition aims to improve access to vaccines, diagnostics, and other health technologies—especially for neglected diseases and vulnerable populations in the Global South.
- Commitments on Basic Needs and Equality:
- For the first time, G20 nations committed to mobilizing resources for basic sanitation and drinking water, and combating racism and promoting racial equality. These steps aim to reduce systemic inequalities and ensure dignity for all.

Climate Action and Sustainable Development
- Task Force on Global Mobilization Against Climate Change:
  - A new task force has been established to identify and eliminate structural barriers that hinder private capital flows toward climate action, particularly in developing countries. This is a major step to enable a just, affordable, and inclusive energy transition.
Reform of Global Governance Institutions
- Strengthening Multilateral Development Banks (MDBs):
  - The G20 endorsed a roadmap to reform MDBs, aiming to make them bigger, better, and more effective in tackling global development challenges and meeting the needs of vulnerable nations.
Taxing the Ultra-Rich
- Global Dialogue on Taxing the Super-Rich:
  - For the first time, G20 leaders agreed to cooperate on measures to ensure that ultra-high-net-worth individuals are effectively taxed, highlighting the growing international momentum toward global tax equity.

Frequently Asked Questions (FAQs) on G20

1. What does the G20 stand for?

The G20 stands for the “Group of Twenty”, which includes the world’s major economies. It serves as the premier forum for international economic cooperation and decision-making.

2. What is the G20 Summit?

The G20 Summit is the annual meeting of the Heads of State or Government of G20 member countries. It is the culmination of a year-long series of meetings on economic, political, and global governance issues.

3. Why was the G20 Leaders’ Summit established?

The G20 Leaders’ Summit was created in response to the 2008 global financial crisis. It was elevated from a ministerial-level meeting to a summit of leaders to enable rapid and coordinated decision-making at the highest level.

4. Which countries and organisations participate in the G20?

The G20 includes 21 members:

Countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom, United States.
Regional bodies: European Union and African Union.
Others: Guest countries and international organisations (such as the UN, IMF, World Bank, and WHO) are also invited.

5. What is the significance of the G20?

The G20 countries represent:

Around 85% of global GDP
Over 75% of international trade
Roughly two-thirds of the global population
It plays a critical role in shaping global economic policies and addressing major international challenges.

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