PRESIDENTSHIP OF G 20

 India is assuming the presidentship of G 20 from Indonesia for the one year period of oo December 1st 2022 to November 30th 2023. The G20 or group of twenty is an intergovernmental forum founded on September 26th 1999 concieved by G7 In response to the series of  crises that occurred across emerging markets like Mexico, Brazil,Argentina, Russia and East Asia in 1990s. G 20 comprised of 19 countries and the European Union.(Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States and European union). Together they account for 85 percent  of global GDP, 75 percent of international trade and two- thirds of the world population. It works to focus major issues related to the world economy, such as international financial stability, climate change mitigation and sustainable development. India as G20 President will be inviting Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and UAE as guest countries. During the Presidency of India,Indonesia and Brazil would constitute the troika consisting of current, previous and upcoming presidents together playing a constructive and vibrantrole on key priorities comprising of Inclusive, equitable and sustainable growth, LIFE (life style for environment),women empowerment, digital public infrastructure and tech enabled development in areas ranging from health, agriculture and education to Commerce. Skill mapping, culture and tourism, climate financing circular economy, global food security, energy security, green hydrogen, disaster risk reduction and resilience.The developmental cooperation will also ensure fight against economic crime and reform of multilateral institutions. 

The entire idea of  presideny is to make consensus based solution to global issues and trans border challenges like regulation of virtual assets, dealing with cross border remittances, issue of global capital flows and how to create buffers and safety nets for developing countries that get affected by spillovers. On November 1st  India's finance minister emphasised climate finance and Crypto regulation as key G 20 agenda along with climate and sustainable development financing, multilateral institution reforms, regulation of digital assets, the spillover effects on developing economies from actions of western central banks, energy and food security in the backdrop of war in Ukraine and sanctions on Russia and their impact on the global economy are main agenda items that India will take up as president of G 20.The organisation intend to strengthen multilateral institutions in terms of Governance, capital and resources inorder to address emerging global challenges. G 20's Agenda and work are coordinated by the representatives of member countries known as Sherpas.In India former NITIAyog's CEO Ampitabh Kant is coordinating the activities as Sherpa who work together with finance ministers and Central bank Governors of member countries.Within one year India has to host more than 200 G 20 meetings across the country starting from December itself, need to prepare issue notes and eventually chart out programs to tackle them.

Despite developed  countries increasing presence in the G 20 grouleepp     emerging economies had played a strong role  in steering the world economy out of global financial crisis of 2008-10. Unfortunately in 2020s it could not effectively fight against either the covid19 pandemic or the global economic impact and spillovers triggered by geopolitical tensions mainly associated with the Russia Ukraine conflict.  According to former RBI Governor D SubhaRao recent developments threatened the world to split practically into " two trade blocks, two financial systems, two currency blocks, two payment systems and two separate world wide webs". Developing countries should not be forced to choose between the two systems. The troika should adopt detailed deliberations on how countries can cope up with the adverse spillover effects of the global turmoil. The biggest spillover concerns are on food security of poorer countries, affecting 345 million people who have been affected by the Covid19 pandemic and crop failures due to climate change and the Russian invasion of Ukraine. Another fall out is the prospect of large outflows of foreign capital from emerging economies due to monetary tightening in countries like USA.Other important agenda of India as the president of G 20 are regulating regulating the crypto currencies and reform of multilateral institutions like IMF, World Bank and United Nations Organisation. 

Focusing on high energy prices India has been championing the case for a global electricity Grid plan- One Sun One World One Grid (OSOWOG) that seeks to transfer solar power generated in one region to feed the electricity demand of others. Already an Energy Transition Working Group (ETWG) has been set up, to focus and give priority to energy security and diversified supply chains which is shared by union ministries of power and, new and renewable energy Central Electricity Authority. Similarly spectacular breakthroughs have been achieved by India in tremendous opportunities rolled out through Digitalisation, digital public infrastructure and other innovations emerging in digital and information technology which can be very well imparted to other G20 members and the world. With regard to work for achieving financial stability good number of initiatives have been undertaken by institutions like IMF OECD and Bank of International Settlement. As G20 President in collaboration with above institutions and member countries mechanisms to regulate virtual assets, cross border remittances, global capital flows and to create buffers for developing and low income countries need to be developed. With regard to regulation of crypto assets in the absence of efficacy of single country effort concerted collective global action is required especially when such assets are diverted to drug trafficking, terrorism and smuggling activities. However at the national level legislative measures including comprehensive personal and non personal data protection laws are expected to infuse competition in the digital space. Majority of the global corporations are taking loopholes in the international tax system. They adopt Base Erosion and Profit Shifting (BEPS) strategy to shift profits from higher tax jurisdiction to lower tax jurisdiction, thereby eroding the tax base of higher tax jurisdiction. Strikingly Income from intangible sources like software, drug patents and royalties from intellectual property flowed to these jurisdictions. Under the OECD/G20 inclusive framework  on BEPS 139 countries and jurisdictions are collaborating to put an end to tax avoidance. UN Secretary General Antonio Guterres 'very strongly' hopes that India's G20 Presidency will allow for the creation of effective systems of debt restructuring and debt relief amid the impact of the pandemic and increased food and fuel prices leading to a perfect storm in developing countries. Against this background Guterres also called for reform of international economic and financial system, adding that for this G20 leadership will be essential. Climate finance refers to local national or global financing- drawn from publc,private and alternative sources of financing that seeks to support mitigation and adaptation actions that will address climate change. Although developed countries promised $100billion a decade ago only small fraction has been recieved by developing countries so far. At the forthcoming  COP 27 progress of initiatives related to emission reduction targets climate change and climate finance are expected along with more clarity pertaining to the definition of climate finance for developing countries. The goal of$100 billion per year of climate finance by 2020 and every year thereafter till 2025 still remains a distant possibility to be achieved. 

Significantly in India's upcoming presidency concerted and collective action as G20 President, troika and members should create true partnership in which developed countries contribute with financial resources and technological support along with support of major developing countries like China and India as per their competitiveness in manufacturing, Digitalisation and new and renewable energy etc which can buttress emerging economies in their transition.Globally we have to reduce emissions on a warfooting   at the earliest otherwise we will lose the war on climate change with devastating consequences for the entire planet. Above all shortage of covid vaccines, mounting debt burden and food crisis of low income countries require immediate action with specific priority treatment or package.