Why in the news?

• The G20 summit begins at  South Africa’s Johannesburg without the presence of the US President.

G20 Grouping

• Origins and Membership: Established in 1999, includes 19 countries and the EU
• Purpose: Addresses global economic and financial issues, international economic cooperation, market stability, and sustainable development.
• Annual Summit: Rotating annual summit hosted by member nations for high-level discussions on trade, debt, energy security, and more. India hosted in 2023.
• Association with Other Organisation: It is representative of the International Monetary Fund(IMF) and the World Bank.
• Headquarters: It does not have permanent headquarters.
• Members: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the EU.
• Significance:
  • Represents about 80% of global GDP, 75% of global trade, and two-thirds of the world’s population
  • Balances interests of both advanced and emerging economies
  • Coordinates macroeconomic policies and manages global economic crises
  • Influences global institutions and standards (e.g., IMF, World Bank)
  • Expands its agenda to include climate change, sustainable development, and energy security
• Challenges:
  • Diverse membership with conflicting national interests
  • Informal structure with non-binding commitments, affecting policy implementation
  • Rapidly changing global economic and geopolitical landscape
  • Issues with transparency, accountability, and stakeholder engagement

Source: The Hindu