The momentum of inclusive governance that began with India’s G20 presidency in 2023 has been carried forward by Brazil’s G20 presidency in Rio de Janeiro. It aligns closely with the human-centric approach of India’s presidency, focusing on social inclusion, hunger reduction, and sustainable development. In the G20 Troika with Brazil and South Africa, India continues to work for balanced global governance that serves the interests of developing nations.
| GS Paper | GS Paper II |
| Topics for UPSC Prelims | G20 summit in Rio de Janeiro, Social inclusion, Sustainable development, India-Middle East-Europe Economic Corridor, G20 presidency in 2023, Global Biofuel Alliance, LiFE (Lifestyle for Environment) initiative , International Solar Alliance, European Free Trade Association, Common Framework for Debt Treatment , Multilateral Development Banks |
| Topics for UPSC Mains | Key Challenges Undermining the Effectiveness of the G20, Role of G20 in Enhancing India’s Leadership Role |
Origin of the Article
This editorial is based on “Global South seeks to put its imprint on G20” published in Hindustan Times on 18/11/2024. This article discusses Brazil’s G20 presidency and its focus on social inclusion, hunger reduction, and sustainable development.
Relevance for UPSC Aspirants
Understanding the G20 Presidency of Brazil and the related priorities forms part of UPSC aspirant knowledge. The subject deals with the aspect of the syllabus regarding international relations, mainly at the level of bilateral and regional groupings and agreements. It gives knowledge regarding world governance and economic policies plus India’s strategic position worldwide, to help aspirants prepare both for Prelims and Mains.
Why in News?
The topic is important for the UPSC aspirant as it narrates Brazil’s G20 Presidency, which develops on India’s legacy of inclusive governance, hunger and poverty reduction, and sustainable development. This corresponds to some theme in GS Paper 2 regarding international relations and global governance, which appear frequently in an UPSC exam. This is a very necessary perspective in both Prelims and Mains.
How has India Leveraged G20 to Enhance its Global Leadership Role?
India used its G20 presidency strategically to further enhance global leadership through various diplomatic, economic, strategic, and cultural initiatives. It has created a position for India among the nations that bridge developed and developing countries.
Diplomatic Leadership
India’s G20 presidency in 2023 demonstrated diplomatic leadership by making the African Union a permanent member of the G20. The Delhi Declaration achieved under India’s leadership made it clear that India serves as a bridge between the developed and the developing world, despite how deep geopolitical divisions are.
Economic and Trade Opportunities
India used the G20 platform to influence global economic policies, which are crucial for its vision of becoming a $5 trillion economy. Initiatives such as the India-Middle East-Europe Economic Corridor and the endorsement of India’s digital public infrastructure, particularly UPI, highlight India as a major market and source of developmental solutions.
Strategic Autonomy
India’s G20 presidency therefore helped balance its strategic autonomy, which is a crucial enabler in the management of relations between the US-led Western bloc and the Russia-China axis. Initiatives such as the Global Biofuel Alliance and India’s handling of contentious issues, such as China’s territorial expansionism and the Russia-Ukraine conflict, indicated India’s maturity in diplomacy.
Sustainable Development and Climate Leadership
India used the G20 to advance its climate commitments without compromising the development rights of the Global South. The LiFE initiative and increased support to the International Solar Alliance stand as examples of India’s leadership in sustainable development and climate action.
Cultural and Soft Power Projection
India used the G20 to advance its climate commitments without compromising the development rights of the Global South. The LiFE initiative and increased support to the International Solar Alliance stand as examples of India’s leadership in sustainable development and climate action.
Key Challenges Undermining the Effectiveness of the G20
India used the G20 to advance its climate commitments without compromising the development rights of the Global South. The LiFE initiative and increased support to the International Solar Alliance stand as examples of India’s leadership in sustainable development and climate action.
Consensus Building and Decision Implementation
Geopolitical tensions, exemplified by the Russia-Ukraine conflict, make consensus-building within the G20 increasingly difficult. The gap in implementation, as seen in the Bali summit’s struggle to issue a joint communique, threatens the G20’s credibility as an effective global governance forum.
Global Economic Fragmentation
Economic fragmentation, encouraged by protectionism and growing blocks of economies such as the European Free Trade Association, works against global economic cooperation. Trade-restrictive measures, and US-China trade tensions, have led to a reorganization of supply chains and a decline in FDI worldwide.
Institutional Legitimacy and Representation
Despite the inclusion of the African Union, the G20 has been criticized as overrepresenting European countries and underrepresenting other regions such as Africa. Therefore, efficiency and inclusivity will remain a central challenge for the G20’s future relevance.
Climate Action and Development Trade-offs
The balancing of climate commitments with development needs remains one of the most challenging issues for G20 members. Although G20 countries are responsible for 80% of global emissions. But promised climate finance is not met. And development members face special challenges in balancing short-term development needs with long-term climate goals.
Debt Sustainability and Financial Stability
Global debt challenges coordination efforts of the G20 in economic coordination. The IMF reported that global debt increased to 238% of GDP in 2022, with developing members of the G20 exposed the most. The Common Framework for Debt Treatment has faced some challenges in implementation.
Measures to Enhance the Effectiveness of G20
Strengthening the implementation mechanism will boost the effectiveness of the G20, along with reforms in the decision-making process, financial architecture, and crisis management. Such initiatives will make the G20 a vital platform to address global challenges.
Strengthening Implementation Mechanisms
Strengthening implementation mechanisms by creating a permanent G20 secretariat, introducing legally binding commitments. And also by developing an automated tracking system with financial incentives and penalties, besides establishing a peer review mechanism for major commitments.
Reforming Decision-Making Process
Implementing a two-tier voting system, crisis resolution protocols. Specialized technical committees on complex policy areas will enhance the G20 decision-making process. The success in achieving consensus of key issues by Brazil 2024 will further strengthen the process.
Enhancing Financial Architecture
Dedicated funding mechanisms for climate finance, reforming Multilateral Development Banks, and developing innovative financing instruments for developing nations will enhance the G20’s financial architecture. Scaling up climate finance from billions to trillions is indispensable.
Strengthening Climate Action
Creating binding commitments for climate finance, establishing technology transfer mechanisms. And developing standardized emissions tracking systems will strengthen the G20’s climate action commitments. Instituting compliance monitoring will ensure accountability.
Improving Crisis Management
Permanent emergency response coordination centers, standardized protocols for each type of crisis. And also mechanisms to fund rapid responses would help the G20 improve its capacity in crisis management. Crisis-specific task forces will have well-defined mandates.
Tackling Global Economic Fragmentation
The promotion of initiatives, such as the Global Supply Chain Resilience Forum to facilitate dialogue on reducing protectionist policies. A G20 framework for FDI in green and digital technologies will address global economic fragmentation.
Enhancing Institutional Legitimacy and Representation
Expanding its representation with voices from areas less represented, and fostering increased engagement between non-G20 nations and civil society groups will serve to strengthen G20 institutional legitimacy and the level of representation. Capturing diverse global perspectives remains crucial to the process.
Ensuring Debt Sustainability and Financial Stability
Debt sustainability and financial stability will be ensured through reforming the Common Framework for Debt Treatment, promoting debt-for-climate investments, and establishing a permanent debt observatory. Monitoring vulnerabilities and providing early warnings will help maintain global financial stability.
PESTEL Analysis
| Political Factors: Geopolitical tensions, such as the Russia-Ukraine conflict, challenge the G20’s consensus-building efforts. Brazil, following India’s leadership, will work to balance interests between the Global South and North, ensuring inclusive governance. Expanding the G20’s legitimacy, as India did with the African Union, will be essential for global representation. Economic Factors: Global economic fragmentation, driven by protectionism and trade disputes, poses challenges to the G20’s effectiveness. Brazil will work to reduce trade barriers and foster cooperation in sectors like digital technology and green economy. Addressing global debt issues and promoting sustainable investment are crucial for economic stability and growth. Social Factors: Brazil’s focus on social inclusion, poverty alleviation, and equity will align with G20 goals. Following India’s example, Brazil can leverage cultural diplomacy to enhance its soft power. Additionally, expanding digital public infrastructure and financial inclusion will be central to improving social welfare in developing nations during Brazil’s leadership. Technological Factors: Brazil’s G20 leadership will emphasize technological advancement for economic growth and social inclusion, building on India’s digital infrastructure models. Promoting green technologies and digital economy solutions, Brazil will drive innovation in sustainable development. Technological solutions for financial inclusion and e-commerce will be central to Brazil’s economic diplomacy and global leadership. Environmental Factors: Brazil will prioritize climate action and sustainable development, addressing global emissions and deforestation concerns. Expanding renewable energy and green technology cooperation will align with India’s environmental agenda. Legal Factors: Legal reforms for institutional legitimacy and inclusivity will be key under Brazil’s G20 leadership. Ensuring balanced representation, particularly for Africa and the Global South, is crucial. Brazil will advocate for stronger debt restructuring mechanisms and binding climate finance agreements, ensuring that developing nations meet sustainable development goals through equitable legal frameworks. |
Conclusion
Debt sustainability and financial stability will be ensured through reforming the Common Framework for Debt Treatment, promoting debt-for-climate investments, and establishing a permanent debt observatory. Monitoring vulnerabilities and providing early warnings will help maintain global financial stability.
| UPSC Civil Services Examination, Previous Year Questions (PYQs) Mains Q. The G20 forum plays a significant role in shaping global economic and political governance. Discuss the challenges faced by G20 in effectively addressing global economic crises and in achieving long-term sustainable development, especially in light of India’s priorities during its G20 presidency. (UPSC Mains 2022, GS Paper II) Q. The G20 summit hosted in Rio de Janeiro by Brazil focused on social inclusion, sustainable development, and hunger reduction, aligning with the themes championed during India’s G20 presidency in 2023. Critically assess the key challenges the G20 faces in achieving its goals of inclusive growth and global social inclusion. How can the India-Middle East-Europe Economic Corridor contribute to these objectives? |
