Context - 

The Indonesian G20 president recently held the 17th annual G-20 meeting in Bali with the theme 'Recover Together, Recover Stronger.'

India now has the G20 presidency, and the 18th summit will be held in India in 2023.

What are the Summit's Findings?

Condemning Russian Aggression:

  • Member nations issued a statement condemning Russia's intervention in Ukraine "in the harshest terms" and urging that it quit unconditionally.
  • They also acknowledged that, while most members denounced the Ukrainian war, "there were various points of view and differing appraisals of the situation and sanctions."

Concentration on the Global Economy:

In their communiqué, the G20 nations agreed to carefully manage interest rate hikes to minimise spillovers and warned of "increasing volatility" in currency swings, a stark contrast to last year's focus on healing the wounds of the Covid-19 epidemic.

Food Security:

The leaders agreed to work together to address food security issues and praised the Black Sea grains effort.

Changes in the Climate:

G20 leaders decided to pursue measures to limit global temperature rise to 1.5 degrees Celsius, reaffirming their commitment to the 2015 Paris Agreement on climate change.

Transformation to digital:

  • Leaders recognise the significance of digital transformation in achieving Sustainable Development Goals.
  • They advocated worldwide collaboration to enhance digital skills and literacy further to capitalise on digital transformation's good effects, particularly for women, girls, and persons in vulnerable situations.

Health: 

  • Leaders also reaffirmed their ongoing commitment to fostering a healthy and sustainable recovery that contributes to achieving and maintaining universal health care.
  • They praised the World Bank's creation of a new financial intermediary fund for pandemic prevention, preparedness, and response (the "Pandemic Fund").
  • Leaders reiterated their commitment to strengthening global health governance, with the World Health Organization (WHO) leading and coordinating, and with the cooperation of other international organisations.

What are the G-20 Member Countries' Challenges?

The Following are the consequences of Russia's invasion of Ukraine:

  • Russia's invasion of Ukraine has not only caused substantial geopolitical instability but has also caused worldwide inflation to skyrocket.
  • The sanctions imposed by the West have exacerbated the situation.
  • Inflation has been persistently high, reaching historic highs in numerous nations, eroding buying power and weighing down economic development.

The Effects of Rising Inflation:

  • In reaction to soaring inflation, central banks throughout the world boosted interest rates, dampening economic activity even further.
  • Some of the world's largest economies, such as the United States and the United Kingdom, are expected to enter a recession, while others, such as those in the eurozone, are expected to slow to a crawl.

Major Economies Slowing:

China, one of the world's primary development engines, is experiencing a dramatic slowdown as it deals with a real estate crisis.

Rising Geopolitical Rifts:

The global economy is grappling with geopolitical schisms such as tensions between the world's two largest economies, the United States and China, or the drop in trade between the United Kingdom and the eurozone following the Brexit referendum.

The Future Perspectives -

  • The G-20 countries' first task is to bring rising inflation under control.
  • At the same time, governments must find measures to assist the disadvantaged without increasing debt levels. In this sense, it is critical to ensure that external threats are constantly monitored.
  • A robust, lasting, balanced, and inclusive recovery necessitates G-20 collaboration, and this type of collaboration necessitates establishing peace in Ukraine and "helping avoid future division."
  • On trade, the G20 leaders must advocate for "more open, stable, and transparent rules-based commerce" to help overcome global goods shortages.
  • Improving the robustness of global value networks would protect against future shocks.

Source: TH