Daily Current Affairs : 5-September-2023
In recent news, the G20 has been making headlines, and it’s important to understand what this international forum is all about. The G20, or Group of Twenty, is a crucial gathering of leaders from the world’s major economies. In this essay, we will delve into the structure and significance of the G20, shedding light on its various tracks, including the Finance Track, Sherpa Track, and Engagement Groups.
18th G20 Summit in New Delhi
The 18th annual G20 Heads of State and Government Summit is set to take place at Bharat Mandapam, Pragati Maidan, in New Delhi. To grasp the significance of this event, let’s first understand the evolution of the G20.
Evolution of the G20
Established in 1999, the G20 initially operated at the level of finance ministers and central bank governors only. However, a pivotal moment occurred after the global financial and economic crisis of 2008 when it transformed into a leaders’ forum. The G20 Summit represents the culmination of various processes and meetings held throughout the year, engaging ministers, government officials, and civil society organizations from the host country.
Structure of the G20
The G20 operates through three major tracks, each with distinct purposes and roles.
Finance Track
The Finance Track is spearheaded by finance ministers and central bank governors. They convene four times a year, with two meetings coinciding with the World Bank and IMF gatherings. This track primarily focuses on fiscal and monetary policy issues, which include:
- The global economy
- Infrastructure development
- Financial regulation
- Financial inclusion
- International financial architecture
- International taxation
Within the Finance Track, there are various working groups that tackle specific issues, such as the Framework Working Group, Sustainable Finance Working Group, and International Taxation Issues group, among others.
Sherpa Track
The Sherpa Track was established following the G20’s transition into a leaders’ summit. Comprising representatives of heads of state, this track addresses critical socio-economic issues, including agriculture, anti-corruption, climate action, digital economy, and more. Each representative is referred to as a Sherpa, drawing inspiration from mountaineering, where Sherpas assist mountaineers with the heavy lifting. The Sherpa Track boasts 13 working groups, each dedicated to a specific area, such as Employment, Health, and Trade and Investment.
Engagement Groups
The unofficial track of the G20 consists of engagement groups or civil society groups. These groups play a vital role by formulating recommendations for G20 leaders, contributing to the policymaking process. The engagement groups encompass various sectors and perspectives, including business, civil society, labor, parliamentarians, science, startups, think tanks, urban development, women, and youth.
Significance of the G20
The G20 serves as a crucial platform for addressing global challenges and fostering international cooperation. By bringing together leaders and experts from diverse fields, the G20 aims to shape policies that can address issues ranging from economic stability to climate change.
Important Points:
Evolution of the G20
- The G20 was established in 1999, initially involving finance ministers and central bank governors.
- After the 2008 global financial crisis, it transformed into a leaders’ forum.
- The G20 Summit is the culmination of various meetings and processes throughout the year.
Structure of the G20
- The G20 operates through three major tracks:
- Finance Track: Led by finance ministers and central bank governors, focusing on fiscal and monetary policies.
- Sherpa Track: Comprising representatives of heads of state, addressing socio-economic issues.
- Engagement Groups: Unofficial civil society groups providing recommendations to G20 leaders.
Finance Track
- Finance ministers and central bank governors meet four times a year.
- Key areas of focus include the global economy, financial regulation, and international taxation.
- Various working groups exist within the Finance Track.
Sherpa Track
- Established after the G20 became a leaders’ summit.
- Addresses socio-economic issues like agriculture, climate, and digital economy.
- Each representative in this track is referred to as a Sherpa.
- Features 13 working groups, each dedicated to specific areas of concern.
Engagement Groups
- Unofficial track comprising civil society groups.
- Play a role in formulating recommendations for G20 leaders.
- Engagement groups encompass various sectors, including business, labor, science, and more.
Significance of the G20
- The G20 is a critical platform for addressing global challenges and fostering international cooperation.
- It brings together leaders and experts from diverse fields.
- Aims to shape policies addressing economic stability, climate change, and other pressing issues.
Why In News
The G20 operates through three primary tracks: The Sherpa Track and Finance Track constitute the official channels of engagement, while the Engagement groups play a pivotal role within the unofficial track. These diverse tracks enable the G20 to effectively address global economic challenges and promote international cooperation.
MCQs about Understanding the G20: Structure and Significance
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What was the initial scope of the G20 when it was established in 1999?
A. Leaders’ summit
B. Forum for central bank governors
C. Finance ministers’ gathering
D. Socio-economic platform
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Which track of the G20 focuses on fiscal and monetary policy issues, global economy, and financial regulation?
A. Finance Track
B. Sherpa Track
C. Engagement Groups
D. Sustainability Track
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What is the primary role of the Engagement Groups within the G20?
A. Setting global economic policies
B. Advising on central banking issues
C. Drafting recommendations for G20 leaders
D. Overseeing financial regulations
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