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11th G-20 Summit Concludes
Sep 07, 2016

The recently concluded 2016 Hangzhou summit was the 11th meeting of the G-20. It was held on 4–5 September in the city of Hangzhou, Zhejiang province in China.  It was the first ever G-20 summit hosted in China and the second Asian country after 2010 G-20 Seoul summit was hosted in South Korea.

  • The main item on the agenda was the health of the global economy.
  • China is lauding its successful hosting of the G-20 summit with open confrontation largely avoided and broad consensus reached over the fragile state of the global economy and the need for a wide range of policies to fix it.
  • There was a joint announcement by China and United States that they would ratify the Paris climate change agreement, a significant step for the world’s two biggest emitters of greenhouse gases.
  • Disputes over tax policy and trade, notably cheap steal from China, and boosting economic growth dominated the discussions.
  • But scratch beneath the surface and the gathering of the world’s most powerful leaders was not all plain sailing–from the distraction of a North Korean missile test to the failure of the United States and Russia to reach agreement over Syria.

B-20 Summit: The Business 20 (B-20) summit, which was attended by business leaders and officials including those from the Group of 20 (G-20) economies, came to an end with many consensuses and results, especially a policy recommendation report.

  • The two-day event, which was scheduled ahead of the G-20 summit, attracted more than 1,100 business leaders to discuss hot topics and difficulties for the world economy.
  • The summit issued the B-20 2016 Policy Recommendations report to the G-20, raising 20 important aspects of recommendations and 76 concrete measures.
  • The report offers some suggestions for the first time, such as an Electronic World Trade Platform initiative, a SMART innovation initiative to encourage entrepreneurship and innovation, as well as developing green finance and investment market.
  • Leaders of Argentina, South Africa, Australia and Canada as well as heads of the International Monetary Fund, World Bank and the other multilateral organisations participated in the meeting and discussed with business leaders.
  • They agreed that G-20 members should strengthen cooperation with an open attitude, advance reform and promote growth.

With good interaction between government and companies, sound environment for investors, investment in education and technology development, all sides should make joint efforts toward an innovative, invigorated, interconnected and inclusive world economy, the participants agreed.
They held the view that it is necessary to break a new path for global economic growth, increase high-quality and "bankable" projects, and promote innovation in financial tools for infrastructure investment.

The participants also agreed to facilitate private sectors' investment in infrastructure, promote the development of green finance and investment market, and develop inclusive finance.

India-China Meet: India and China must be sensitive to each other’s concerns’, Prime Minister Narendra Modi told Chinese President Xi Jinping, when the two leaders met on the sidelines of the G-20 summit in an attempt to reboot troubled ties between the two countries.

  • During the 35 minute meeting, Narendra Modi raised several concerns, including ‘terrorism emerging’ from the area covered by the China-Pakistan Economic Corridor (CPEC)—the $46 billion connectivity project that India has objected to.
  • Without naming Pakistan, the Prime Minister said, “Our response to terrorism must not be motivated by political considerations.”
  • In response, President Xi said that China is willing to work with India to maintain their hard-won sound relations and further advance cooperation.
  • President Xi suggested that “China and India should continue dialogues at various levels and in various areas, and frequently exchange views on major issues of common interest to enhance understanding and trust.”

Informal BRICS Summit: At the informal BRICS (Brazil-Russia-India-China-South Africa) summit Narendra Modi said that terror groups in South Asia and for that matter anywhere do not own banks and factories.

Clearly someone funds and arms them and the BRICS must intensify joint efforts not only to fight terror, but coordinate actions to isolate those who are supporters and sponsors of terror.

Narendra  Modi said, supply chains (of terrorism) and reach are global, (and) abuse of social media to promote radical ideology is a growing dimension of this threat.

All contentious issues, including the NSG, China’s reservations in sanctioning Jaish-e-Mohammad chief Masood Azhar and India’s problems with the CPEC, will now be discussed openly and frankly at the newly formed dialogue mechanism between the Foreign Secretary and the Vice-Foreign Minister from China. The forum was established during last month’s visit of Chinese foreign minister Wang Yi to India.

The Area of India’s Focus: India's focus at the G-20 summit was on global structural reforms to generate jobs, spur inclusive growth and to discuss issues relating to the $100 billion climate financing committed by developed nations.

India said the BRICS summit in Goa in October will discuss a proposal to set up a rating agency for the five-member bloc on the lines of US-based rating agencies.

The main thrust of India at the G-20 summit was the implementation of structural reforms by the member-countries to spur job growth.

The other important aspect was Prime Minister Narendra Modi's bilateral meetings with various world leaders on the sidelines of the G-20 summit.

What is G-20?

  • The Group of Twenty (G-20) is the premier forum for its members' international economic cooperation and decision-making. It comprises 19 countries plus the European Union.
  • G-20 leaders meet annually; additionally, during the year, Finance Ministers and Central Bank Governors meet regularly to discuss ways to strengthen the global economy, reform international financial institutions, improve financial regulation, and discuss the key economic reforms that are needed in each of the member countries.
  • Underpinning these meetings is a year-long program of meetings between senior officials and of working groups coordinating policy on specific issues.
  • The G-20 started in 1999 as a meeting of Finance Ministers and Central Bank Governors in the aftermath of the Asian financial crisis.
  • In 2008, the first G-20 Leaders' Summit was held, and the group played a key role in responding to the global financial crisis. Its decisive and coordinated actions boosted consumer and business confidence and supported the first stages of economic recovery.
  • The G-20 Summit continues to focus on measures to support global economic growth, with a strong emphasis on promoting job creation and open trade.
  • Each G-20 President invites a number of guest countries each year.
  • The G-20 works closely with international organizations including the Financial Stability Board, the International Labour Organization, the International Monetary Fund, the Organization for Economic Co- operation and Development, the United Nations, the World Bank and the World Trade Organization.
  • These and a number of other organizations are invited to attend key G-20 meetings.
  • Engagement groups such as B-20, L-20, T-20 and W-20 also convene to prepare policy recommendations for the G20 Summit during the year.

G20 Members: The members of the G20 are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States, and European Union.


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