Why in news?

The G20 summit began at Rio de Janeiro’s Modern Art Museum, hosted by Brazilian President Luiz Inácio Lula da Silva. Key leaders, including India’s Prime Minister Narendra Modi, US President Joe Biden, and China’s Xi Jinping, are participating in discussions on trade, climate change, and international security.

PM also addressed the opening session of the G 20 Summit on ‘Social Inclusion and the Fight against Hunger and Poverty’.

What’s in today’s article?

• G20
• Key highlights of the speech delivered by PM Modi
• G20 Summit in Rio begins

G20

• Overview
  • G-20, is a group of finance ministers and central bank governors from 19 individual countries and European Union. It was established in 1999.
  • It was elevated to a forum of Heads of State/Government in 2008 to effectively respond to the global financial crisis of 2008.
  • It is a forum, not a legislative body, its agreements and decisions have no legal impact, but they do influence countries' policies and global cooperation.
• Members
  • It consists of 19 countries and the European Union (EU):
    • Countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, and United States.
  • Special Invitees: Guest nations and organizations, including the United Nations and the World Bank, participate in G20 summits.
• Aims/Objectives
  • Economic Stability: Foster global economic growth and financial stability.
  • Sustainable Development: Promote policies addressing climate change and equitable development.
  • Crisis Management: Coordinate responses to financial and health crises (e.g., COVID-19).
  • Global Collaboration: Strengthen multilateral cooperation on trade, investment, and innovation.
  • Inclusivity: Represent voices of both advanced and emerging economies, including the Global South.
• Achievements (Examples)
  • Financial Crisis Mitigation (2008): Coordinated response to the global financial crisis, preventing deeper recession.
  • Paris Agreement Support (2015): Played a key role in fostering international consensus on climate change goals.
  • Debt Relief for Developing Nations (2020): Launched the Debt Service Suspension Initiative (DSSI) during the pandemic to aid vulnerable countries.
  • COVID-19 Pandemic: Facilitated vaccine distribution and economic recovery plans through global cooperation.
    • In March 2020, G20 leaders pledged to inject $5 trillion into the global economy to reduce the economic impact of the coronavirus pandemic.
  • Digital Transformation (2023): India’s G20 presidency focused on fostering digital public infrastructure to bridge the global digital divide.

Key Highlights of PM Modi’s Speech at the G20 Summit

• Focus on Sustainable Development Goals (SDGs)
  • Praised Brazil’s agenda for emphasizing SDGs and Global South concerns.
  • Recognized continuity from India’s G20 presidency theme: “One Earth, One Family, One Future.”
• India’s Achievements in Poverty Alleviation and Food Security
  • Pulled 250 million people out of poverty in the last decade.
  • Distributes free foodgrains to 800 million citizens.
  • 550 million people benefit from the world’s largest health insurance scheme.
  • Advocates a ‘Back to Basics and March to Future’ approach for tackling food security.
• Global Contributions and Collaboration
  • Strengthened food security in Africa, providing humanitarian aid to Malawi, Zambia, and Zimbabwe.
  • Welcomed Brazil’s proposal to establish a ‘Global Alliance against Hunger and Poverty.’
• Support for the Global South
  • Emphasized prioritizing Global South concerns, particularly food, fuel, and fertilizer crises caused by global conflicts.
• Women-Led Development and Nutrition
  • Highlighted India’s initiatives for women-led development.
  • Focused on nutrition as part of food security efforts.

G20 Summit in Rio begins

• Contentious Ukraine War Discussions
  • Drafting a joint statement has been challenging, particularly over the Ukraine war.
  • European leaders sought stronger language following a recent Russian airstrike, while Biden announced the US would lift restrictions on Ukraine’s use of US-made weapons for strikes inside Russia.
• Brazil’s G20 Agenda
  • Brazil’s agenda emphasized sustainable development, taxing the super-rich, combating poverty, and reforming global financial institutions.
  • However, potential resistance is anticipated with US President-elect Donald Trump’s administration, especially concerning taxation reforms.
• Climate and Energy Commitments
  • US President Biden pledged funds to the World Bank’s International Development Association and launched a clean energy partnership with Brazil.
  • Meanwhile, Xi Jinping promoted the Belt & Road initiative, despite Brazil’s refusal to join.
• Trade Tensions and Economic Policies
  • Trade talks were overshadowed by fears of an escalating US-China trade war, with Trump planning new tariffs.
  • Efforts to include a tax on the super-rich faced opposition, notably from Argentina.