What is G20

The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigation, and sustainable development.

The G20 is composed of most of the world's largest economies, including both industrialized and developing nations, and accounts for around 90% of gross world product (GWP), 75–80% of international trade, two-thirds of the global population, and roughly half the world's land area.

The G20 was founded in 1999 in response to several world economic crises. Since 2008, it has convened at least once a year, with summits involving each member's head of government or state, finance minister, foreign minister, and other high-ranking officials; the EU is represented by the European Commission and the European Central Bank. Other countries, international organizations, and non-governmental organizations are invited to attend the summits, some on a permanent basis. At its 2009 summit, the G20 declared itself the primary venue for international economic and financial cooperation.The group's stature has risen during the subsequent decade, and it is recognized by analysts as exercising considerable global influence; it is also criticized for its limited membership, lack of enforcement powers, and for the alleged undermining of existing international institutions. Summits are often met with protests, particularly by anti-globalization groups.

History

Established in 1999, the G20 brings together advanced and developing economies to overcome crises together, particularly in Asia, Russia and Latin America. The goal of the G20 is to create and maintain solid, sustainable, balanced and inclusive global growth.

Initially, the G20 was a meeting between Finance Ministers and Central Bank Governors. Since 2008, the G20 has hosted Heads of State at the annual Summit, with development sector discussions commencing in 2010. Since then, the G20 has consisted of the Finance Track and Sherpa Track. Fun Fact: Named after the nomadic people of Nepal who serve as guides, the G20 Sherpa Meetings lead the way to the Summit by carrying out negations and building consensus among leaders.

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Role

Handling of Global Financial Crisis 2008

One of the G20’s largest successes was overcoming the global financial crisis in 2008. The G20 has helped to change the face of global financial governance by issuing a massive coordinated fiscal and monetary stimulus package. The G20 has also increased IMF lending capacity along with that of several major development banks. Furthermore, the G20 is acknowledged for helping the world regain its footing on the growth path, while pushing important financial sector reforms.

Tax policy

G20 has urged OECD to increase the exchange of information concerning taxation. In 2012, the G20 pioneered the Base Erosion and Profit Sharing (BEPS) international collaboration issued by the OECD to end tax avoidance, which was finalised in 2015. Through BEPS, 139 member countries and jurisdictions are cooperating to end tax avoidance.

Contribution to Covid-19 pandemic containment

G20 initiatives to contain the pandemic include the deferral of foreign debt repayments among low-income countries, a USD5 trillion injection for Covid-19 containment efforts (Riyadh Declaration), reduction/removal of import duties and taxes as well as lower import duties on vaccines, hand sanitisers, disinfectants, medical equipment and medicaments.

Other issues

In addition, the G20 also plays an important role in other international issues, including trade, climate change and development. In 2016, collective principles were applied to international investment. The G20 also supports the political movements that established the Paris Agreement on Climate Change in 2015 and the 2030 Agenda for Sustainable Development.

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