This month saw the grand finalé of the G20 2023 summits under India’s presidency. New Delhi, India’s capital was suitably sanitized, beautified and locked down – for a 3-day holiday – so that leaders of the world’s most economically powerful countries as well as heads of multilateral institutions who had descended upon the city could meet, confer and deliberate on a host of critical issues facing the world.
Two of the world leaders were not in attendance. Does this mean India’s G20 is derailed, asked the media? China and Russia sent their next highest representatives and the meeting was on. The next big question on everyone’s minds was will they all be able to reach a consensus and issue a final statement? Because several of the smaller G20 meetings could not conclude with a common statement – owing to China and Russia’s objection to the wording on the conflict in Ukraine – this was a legitimate concern.
However, with the theme of Vasudhaiva Kutumbakam (a Sanskrit phrase that means the world as one family), our Indian government went in quite confident of achieving an agreement. And sure enough, on the second day of the G20 deliberations, prime minister, Narendra Modi announced that agreement on the Delhi declaration had been reached. After the initial excitement and euphoria died down, it was reported that the wording of the statement on the conflict in Ukraine did not mention Russia and was milder than the statement issued in Bali at the end of the G20 summit last year.
From reading the news and watching it on TV, including interviews with foreign minister, S Jaishankar and Amitabh Kant (G20 Sherpa) who were closely involved with the negotiations during the Summit, I could only sense great relief that consensus was reached. The compromise on the language of the statement was defended on the grounds that they had included text on the importance of respecting territorial integrity and sovereignty, under the UN Charter, as well as the impact that the Ukraine conflict is having on the rest of the developing world through energy and food crises and prices.
That China and Russia had come around to accepting the statement was seen as a great achievement and India claimed the Summit was successful. It is true that China and Russia, who often vote at the UN Security Council as a bloc to veto many resolutions, are also on the same side in the Ukraine conflict. Even though China has remained neutral on Ukraine and is expected to talk sense to Russia to end the conflict. Unfortunately, thanks to anti-China trade policies being pursued in recent years by western powers, Russia and China are being pushed even closer. This, along with all the sanctions against Russia – which might not be achieving very much – is exacerbating the west vs east problem.
It puts India in a very awkward position, though I am glad to see us still adopt a non-aligned stance. How long we will manage this tightrope walk, is anybody’s guess. But I think that India managed to pull it off during this G20 Summit, because we championed the cause of the Global South. Taking up the cause of poor and developing nations and sustainable development goals is not something any world power can be seen to be opposing. On the contrary, it tends to unite minds and helps them focus on critical economic challenges facing the world.
In this context, African Union was included in the G20 group of nations. About time, I would say, that the African continent was represented at G20. If we recognize the fact that the world’s greatest economic powers all have significant interests in African countries – mainly for natural resources and to fight terrorism – it is only fair that the continent has a voice at the high table. I also think that the continent and its various countries’ governments should be allowed to decide their own future without the rest of the world interfering. Recent instances of democracy being crushed by military juntas in many African countries doesn’t inspire confidence, but that doesn’t mean we give up on them. The world must continue to help them in their journeys to becoming fully functional democratic nations and prosperous economies.
This brings me to the other piece of important news emerging from the BRICS summit 2023 held in South Africa, just prior to the G20 finalé. The BRICS group of countries have decided to admit more member countries. BRICS owes its existence to an investment bank that coined BRIC to mean a group of four emerging economies that had similar economic profiles and were good investment opportunities. Since then, BRICS (with South Africa included later) has acquired a life of its own and has grown into a club of countries that represent the second rung of fast-growing, emerging economies in the world economic order. It doesn’t have much influence on its own, though it has managed to create development banks and trade financing mechanisms that do not depend as heavily on the US dollar. And that is what China is hoping to achieve more of, with the expansion of BRICS.
So far, so good. However, if one looks at the kinds of countries being admitted to the BRICS grouping, there is no doubt that this will turn into a pro-China, anti-West group of countries. Perhaps that is why there was reported to be some reluctance on the part of Brazil and India to agree to the expansion. From all reports, both have relented and so we are on our way to a new, expanded BRICS. I will not hazard a guess as to what it will now be called!
I think that this too might have helped India negotiate better on the G20 summit statement, a consensus between a much larger group of countries that account for most of the world’s GDP. No doubt there was deft diplomacy and negotiation, but the ultimate success of a summit ought to be judged on how much of what was discussed is implemented. We will have to wait and see how much of the climate change finance decisions, reform of MDBs, digital public infrastructure, and other important decisions are implemented and by when. The world is still waiting for the minimum alternate corporate tax that was mooted by US Treasury Secretary, Janet Yellen, to be implemented. Why the delay, when most G20 countries are said to have agreed to it in principle is not known. I am also disappointed that we are approaching the start of EU’s CBAM policy which takes effect next month, and we haven’t been able to persuade EU to modify it, so all G20 countries can adopt it, as I have been writing on my blog.
So, yes, for now it appears the world of at least G20 countries is united. Considering an inclusive growth agenda is always a good idea. However, at the same time, we are seeing restrictive, protectionist policies being adopted by world powers who are also members of the G20. Whether the current mood – and mode – is expansionary or expansive, and whether it will prevail, time will tell.
The animated owl gif that forms the featured image and title of the Owleye column is by animatedimages.org and I am thankful to them.
Peripatetic Perch 