The G20 summit offered little, in terms of immediate action on major issues facing the world.
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- The story: Like each year, leaders of the world's twenty major economies gathered in Italy's Rome for a two-day summit centred on the issues of climate change, Covid-19 and economic recovery. There were high hopes that this powerful but informal grouping would take some major decisions.
- G20 summit 2021: The activity of the Italian Presidency is based on three interconnected pillars of action – People, Planet and Prosperity.
- The agenda included the biggest issues facing the global community, including the COVID-19 pandemic, climate change, a major tax agreement, and steps to address concerns regarding global economic growth and stability.
- At the end of two days of working sessions and side events, the G20 Leaders adopted the Rome Declaration.
- Rome Declaration: It was a long one, with the core issues being
- Global economy – Rising inflation, increased energy prices, and supply chain bottlenecks are affecting the world economy which is still reeling from Covid-related disruptions. The leaders assured not to withdraw the national support measures, and pledged to remain vigilant to the global challenges such as disruptions in supply chains.
- Health - To mitigate the pandemic, the focus was on vaccine production and distribution. The members assures support to WHO’s target of inoculating 40% or more of the global population against COVID-19 by 2021, and at least 70% by mid-2022. The leaders were committed to boost the supply of vaccines in developing countries to overcome supply and financing constraint.
- Climate Change - The Group leaders recommitted their nations to providing $100 billion a year toward adaptation, mitigation, and green technologies, focusing on the needs of developing countries. Leaders for the first time acknowledged the use of carbon pricing mechanisms and incentives” as a possible tool against climate change.
- Global finance - The G20 leadership agreed to impose multinationals with a minimum 15% tax to create a more stable and fairer international tax system. This OECD-led reform enjoys the support of 136 countries, which account for more than 90% of global GDP, and is likely to enter into force in 2023 or after. Nations such as the U.S. are divided as it would impact the tech titans of Silicon Valleyon and it might face implementation delays.
- Development aid - Leaders set a new target of channelling $100bn towards poorest nations, coming from the $650bn pot made available by IMF. The timely, effective and coordinated action across major nations will be a ray of hope for global recovery.
- The G20: It is an international forum that brings together the world's 20 leading industrialised and emerging economies including India. Members account for more than 80% of world GDP, 75% of global trade and 60% of the population of the planet. The forum meets every year since 1999 and includes, since 2008, a yearly Summit, with the participation of the respective Heads of State and Government. Ministerial meetings, Sherpa meetings (in charge of carrying out negotiations and building consensus among Leaders), working groups and special events are organized throughout the year.
- The G20 does not have a permanent secretariat, and its agenda and activities are established by the rotating Presidencies, in cooperation with the membership.
- A “Troika”, represented by the country that holds the Presidency, its predecessor and its successor, works to ensure continuity within the G20. The Troika countries are currently Saudi Arabia, Italy and Indonesia.
- Final output: No time-bound agreements were reached as leaders of the world’s top economies ended the summit in Rome, recommitting to providing $100 billion a year to counter climate change, and pushing for greater vaccine equality to fight the COVID pandemic. G20 countries also committed to ending international financing for all new coal plants by the end of 2021, but made no mention of domestic commitments on ending coal power generation. UN Secretary General Antonio Guterres said the failure of the G20 summit to set a specific date for countries to achieve “Net Zero” carbon emissions, and on reducing global warming, had left his hopes “unfulfilled” but “not buried”, as the joint communique set the stage for tough negotiations at the COP26 Climate Change summit in Glasgow that begins on Monday.
- EXAM QUESTIONS: (1) Explain the relevance, or lack of it, of the G20 grouping in battling Covid pandemic worldwide. (2) What is the trajectory that China is taking, as part of the G20? Analyse.
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