Importance of International Current Affair can be seen in the Previous Year Question Paper of UPSC IAS Exam. Here we provide the latest G20 Summit 2016 details and India’s Perspective.
It is very well evident that India’s role in world trade and politics is dynamically increasing given its consistent economic growth. Hence all the relevant topics of Global Current affairs should be prepared in-depth having an analytical approach towards the subject. A good command on international affairs is necessary for both UPSC IAS Prelims and Mains.
What is G20?
G20 or group of twenty is an international forum of the Heads of States of 19 leading industrialized economies and the EU for international cooperation on global economic and financial issues. The group comprises of two-thirds of world’s population and 85 per cent of world’s GDP.
• Ensuring international policy cooperation in a comprehensive manner that is in sync with the contextual business cycles of state.
• Strengthening the international financial architecture system in an era of globalization to prevent a global financial crisis or depression to take place.
• Promoting inclusive and equitable economic growth and sustainable development by addressing the ongoing economic and financial issues and initiating reform actions.
Emerging Role of India:
Since introduction of globalization and liberalization policies in 1991, India has increasingly integrated with the rest of the world and plays an important role in maintaining global economic balance. At the same time adverse developments like global financial crisis and euro zone crisis impact India's growth prospect significantly.
On the forum of G20, India have voiced it’s concerns regarding rebalancing global governance by reforming Quota system in global financial institutions, reframing of global tax structure to combat money Laundering, widening of G20 agenda to include development issues, and monitoring global economic trade imbalances etc.
Before 2008, G20 meetings consisted of Finance Ministers and Central Bank Governors of member states.G20 rose to prominence during the global finance crisis of 2008 and now it is the premier forum for international economic cooperation.
G20 presidency is selected on a rotational basis among the regional groups of member countries and one member from a group is selected as host for a specific year. The grouping is as follows:
For example: China is selected from group 5 to be the host for G20 summit 2016.
The Presidency of G20 invites non-member countries and institutions to attend the Leaders' summit. Invitation is extended to give voice to certain global concerns and an equitable geographical representation to non-members. Countries presiding over regional forums are invited such as ASEAN, African Union etc.
Map of all the countries who attended the G20 summit 2016:
Pink-->Represents the guest countries at G20 summit 2016
Purple-->Represents the member countries of G20
Brief summary of summits: Evolution of G20 objectives:-
A common understanding of the chronic causes of the global crisis and actions taken to address the immediate crisis was developed.
An agreement on common principles for reforming the financial markets was concluded by mutual assessment of all G20 countries.
(a.)Established a new Financial Stability Board (FSB), to collaborate with the IMF to provide early warning of financial risks and the actions needed to address them.
Theme- “Framework for Strong, Sustainable and Balanced Growth”
(a.)A decision to reform the IFIs by changing IMF’s quota share to emerging market economies to under-represented countries.
(b.)A dynamic formula for the World Bank to increase at least 3% voting power for developing and transition countries that are under-represented.
Theme-“Recovery and New Beginnings”
(a.) An agreement formulated on differentiated approach to consolidating growth and recovery versus exit strategies.
(b.)“Development” was introduced for the first time on the G20 objectives and a high Level Development Working Group was created.
Theme-“Shared Growth Beyond Crisis”
Launching of the G20 Development Agenda for the nine development pillars:
(ii) human resource development;
(iv) Private investment and job creation;
(v) Food Security;
(vi) Growth with resilience;
(vii) Domestic resource mobilization;
(viii) Knowledge sharing; and
(ix) Financial inclusion.
Theme-“Building our Common Future: Renewed Collective Action for the Benefit of All”
(a.) Regulation of commodity derivative markets,
(b.) increasing transparency of energy markets, and
(c.) Supporting the recommendations of the High Level Panel on infrastructure.
San José del Cabo, Los Cabos,
|(a.)Adoption of the Los Cabos Growth and Jobs Action Plan and measures that will contribute to strong, sustainable and balanced growth.
(b.)Other key issues of discussion were development policy, green growth, and trade and employment.
Strelna, Saint Petersburg,
A balanced growth, coupled with an Accountability Assessment describing progress made on past commitments of G20.
(a.)Expanding the G20’s commitment not to introduce new trade protectionist measures until the end of 2016.
Key Issues of G20 summit 2016 and India’s perceptions:
Theme: “TOWARDS AN INNOVATIVE, INVIGORATED, INTERCONNECTED AND INCLUSIVE WORLD ECONOMY”
1. Excess capacity in industrial sector (especially steel industry) was recognized as a global issue. It imposes trade related problems, one of them being faulty practice of dumping cheap steel imports into domestic markets of growing economies.
-->Indian economy was also hampered by excess steel capacity in China resulting in a flood of cheap imports in market. So, India strongly voiced in favor of anti-dumping duties.
2. Support for modern and integrated tax system was reiterated. Leaders called for a widespread implementation of base erosion and profit sharing framework formed by joined efforts of G20 and OECD.
3. Efforts to promote international cooperation to combat corruption in relation with G20 two year action plan was India’s top agenda.G20 is the right global forum to recommend transparency standards for the purpose of combating money laundering, tax evasion and terrorist financing.
-->India being one of the pioneers in anti-corruption campaign strongly welcomed this move and called for a more effective and efficient global financial and monetary governance. It also proposes elimination of safe heavens for tax evasion offenders.
4.To stimulate trade growth, all member countries will make efforts to rectify the WTO Trade Facilitation Agreement by the given deadline of December 2016.To accelerate efforts to reduce carbon emissions, strong momentum on climate action was maintained. With US and China ratifying the Paris agreement, the fight against global warming was strengthened.
-->India’s role in climate change fight has been instrumental .India is the founding member to International Solar Alliance to support clean energy efficiency and it is one of the first countries to integrate the Intended Nationally Determined Contributions in its global agenda.
5.Additional efforts to achieve the common goal of strong, sustainable, balanced, and inclusive growth were to be made :
-->To encourage a integrated digital economic system by emphasizing on free flow of data, internet access and cyber security.
-->Promotion to sustainable development by advancing global health security& food security agendas and mobilizing domestic resources for developments.
Way ahead for India:
India being an emerging transitional economy has a proactive role to play in all the international forums including G20.India is an important partner in global cooperation to eliminate issues plaguing the world economy today.
Using the platform of G20, India can easily give voice to its most critical global concerns like
-->Repatriation of black money and combating money laundering.
-->To end excessive bank secrecy and protectionist measures against tax invaders.
-->Equitable quota reforms in multinational financial institutions like IMF.
-->Growing forces of global terrorism and radical ideologies.
India has always emphasized on innovation–driven development coupled with inclusive growth and G20 has forged major concrete actions to reduce
imbalances in global development. This summit concluded with India integrating its concerns with world’s view seeking greater dynamism in global cooperation.