Learning with The Times: What’s G20’s role in the global order?

TNN / Updated: Dec 3, 2018, 11:25 IST

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Founded in 1999, initially G20 or the Group of Twenty was a forum of Finance Ministers and Central Bank Governors of industrialized and developing economies to discuss key issues in the global economy.

Learning with The Times: What’s G20’s role in the global order?

Key Highlights

The G20 is a group comprising of world’s 20 major economies, which account for 85 per cent of world GDP and two-thirds of its population
One of the major achievements of the G20 include quick deployment of emergency funding during the 2008 global financial crisis

NEW DELHI: Founded in 1999, initially G20 or the Group of Twenty was a forum of Finance Ministers and Central Bank Governors of industrialized and developing economies to discuss key issues in the global economy. The group has expanded its agenda since 2008 and head of government and states along with their finance and foreign ministers often meet at the summits. Here's more:
WHO CONSTITUTES THE G20?
Although the group has 19 of the world’s largest economies as its members but it asserts of not having any formal criteria for membership.

Apart from the G7 industrialised nations G20 also includes emerging economies. The 20th member is the European Union, which is represented by whichever country holds the EU presidency. The IMF and the World Bank also attend G20 meetings. The group had its first meeting in 1999 and the chairmanship rotates every year.
HOW BIG IS THE G20?

The G20 countries comprise an overwhelming chunk of global GDP, population and trade.

WHAT DOES IT DO?
The official website states that the G20 convenes its members, guests countries, international organisations and engagement groups for dialogue on global affairs. Over many specialised meetings, which focus on a variety of issues, it builds consensus to develop global policies that address the challenges faced by humanity.

WHAT HAVE BEEN ITS MAJOR ACHIEVEMENTS?
Major achievements of the G20 include quick deployment of emergency funding during the 2008 global financial crisis. It also works for reforms in international financial institutions by improving oversight of national financial institutions. Over the past few years G20 has also become a platform to discuss nearly all issues that affects the world.
WHAT DO THE CRITICS SAY?
The exclusivity of its membership has attracted criticism. The group represents a massive share of global economy and its decisions can impact non-member countries. Critics also point at disproportionate representation of African countries. In 2010, Norwegian foreign minister called the G20 “one of the greatest setbacks since the World War II”.

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