Echoes of the G20 Summit in India

Editor's note: On the occasion of the conclusion of the G20 Summit in New Delhi, Indian Ambassador to Vietnam Sandeep Arya wrote an article exclusively for TG&VN highlighting the results of this event.

Indian Prime Minister Narendra Modi speaks at the G20 Summit in New Delhi on September 9-10. (Source: AFP)

The Joint Statement of the leaders of the Group of 20 (G20) leading developed and emerging economies reflects the consensus of the Summit held in New Delhi, India on September 9-10.

In the context of a complex global environment, the unanimous adoption of a far-reaching and action-oriented declaration, which includes comprehensive decisions and policies on the international economy, is considered a success of the cooperative and comprehensive efforts under India's G20 Presidency. The outcome of this summit has implications for the entire world, including emerging economies like India and Vietnam.

Strong, balanced growth

Strong, sustainable, balanced and inclusive economic growth as envisioned by the G20, with appropriate macroeconomic policies, and cooperation and cohesion between countries and central banks on monetary and fiscal stances, will boost growth, reduce inequality and maintain financial stability.

On trade, the G20 joint statement stressed the importance of a level playing field, fair competition and discouraging market distortions. It also called for support for a fully operational World Trade Organization (WTO) dispute settlement system by 2024, principles for the digitalization of trade documents, a framework for building resilience through mapping global value chains and enhancing access to information for micro, small and medium-sized enterprises in international trade integration.

At the same time, the G20 Summit pledged to support multilateral development banks to become better, larger and more effective, as well as significantly strengthen their financial capacity.

Through the G20 Roadmap for Implementing the Capital Adequacy Framework for Multilateral Development Banks, the statement noted that these banks could provide an additional $200 billion in lending over the next decade. The G20 Summit welcomed the World Bank’s progress on its development roadmap.

This will be further highlighted at the G20 Summit next month on strengthening the financial capacity of multilateral development banks.

In addition to supporting domestic resource mobilization and innovation in financing by leveraging private capital, the G20’s endorsement of the principles for financing future cities will encourage financial institutions to support these efforts. The meeting supports the G20’s desire for a voluntary contribution of $100 billion, a commitment to provide $2.6 billion to poor countries, progress in strengthening confidence in growth and poverty reduction, and efforts to reform quotas and governance of the International Monetary Fund (IMF).

Sustainable Development

Recognizing that the world is off track to meet the 2030 sustainable development goals, the G20 Summit adopted a High-Level Principles and Action Plan to accelerate progress on the sustainable development goals.

Affordable, adequate and accessible financing for development in developing countries continues to be part of the discussion on multilateral banks, voluntary contributions and trust funds. The conference highlighted the role of tourism and culture in sustainable socio-economic development, and recognized the role of quality education, health financing, through the Deccan High Level Principles on Food Security and Nutrition and the need to replenish the resources of the International Fund for Agricultural Development.

G20 supports effective debt resolution by individual countries (Zambia, Ghana, Ethiopia, Sri Lanka) and encourages the Roundtable on Global Sovereign Debt co-chaired by India.

Climate finance was considered in detail at the G20 Summit, with the target of $100 billion in annual mobilization by developed countries expected to be achieved for the first time in 2023.

Quantifying climate finance needs of $5.8-5.9 trillion for developing countries by 2030, in addition to $4 trillion per year for clean energy technologies, would boost financing efforts through multilateral banks, funds and blended finance.

The G20 Summit affirmed specific targets to restore 30% of all degraded ecosystems, reverse biodiversity loss by 2030, and end plastic pollution. At the same time, the joint statement welcomed the negotiation of a legally binding instrument on the issue and endorsed the Chennai High-Level Principles on Sustainable and Resilient Blue Economy (Ocean-based Economy) that will address pressing environmental issues.

The summit also expanded support for tripling global renewable energy capacity, the G20 High-Level Voluntary Principles on Hydrogen, the establishment of the Global Biofuels Alliance, the Action Plan to Advance Renewable Energy, doubling the pace of energy efficiency, and accelerating the phase-out of coal power.

The joint statement endorsed the G20 framework for the development, deployment and governance of digital public infrastructure, high-level principles. From there, the bloc aims to support businesses to build resilience, security and trust in the digital economy, and harness data for development. The G20 also agreed with India's plan to build a global digital public infrastructure repository, achieving the goal of developing a coordinated policy and legal framework for cryptocurrencies.

Indian Ambassador to Vietnam Sandeep Arya. (Source: Embassy of India in Vietnam)

Progress through initiatives

In addition, the G20 Summit saw progress in addressing the challenges of the skills gap, disaster risks, international taxation, corruption, terrorism and cyber security.

These include initiatives such as mapping the global labor gap; developing an international reference framework for occupational classification; endorsing high-level principles on information sharing and international cooperation to enforce anti-corruption laws; a mechanism for recovering assets related to corruption; institutionalizing a new Working Group on Disaster Risk Reduction; rapidly implementing a two-pillar international tax package; and a comprehensive approach to effectively combating terrorism.

In particular, the G20 Summit once again demonstrated India's priority as the Chair in ensuring inclusiveness and full representation of the Global South.

This was demonstrated by Prime Minister Narendra Modi hosting the Voices of the South Summit in January 2023 to showcase the ideas and priorities of these countries, with Vietnamese President Vo Van Thuong attending and speaking. Five months later, Minister of Agriculture and Rural Development Le Minh Hoan attended the G20 Agriculture Ministers Meeting as a special guest. The admission of the African Union as a permanent member of the G20 at the New Delhi Summit would make the G20 more representative and inclusive.

The G20 leadership trio under the leadership of the Indian Presidency along with Indonesia as the previous Presidency and Brazil as the next G20 Presidency have worked effectively to bring the voice of the Global South into the G20 discussions.

It can be seen that the G20 New Delhi Summit was a great success. The joint statement of the leaders not only aimed at promoting international economic cooperation, but also contributed to managing political and security issues through diplomatic means. With the echoes of what just happened in New Delhi, now is the time for countries to preserve and nurture the spirit of one earth, one family, for a common future.

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(*) The article expresses the author's personal opinion.

Source: https://baoquocte.vn/nhung-du-am-cua-thuong-dinh-g20-o-an-do-242061.html