Home PoliticsAmerica G20 Divided and Powerless

Indian Prime Minister Narendra Modi seeks to forge consensus Saturday on a host of contentious issues from Ukraine to climate change, as G20 leaders hold their annual summit in New Delhi.

Divided over Russia’s war in Ukraine and gridlocked on finding agreement to slash carbon emissions, the summit’s most tangible outcome could be the expected accession of the African Union to the grouping that represents 85 percent of global GDP.

“The G20 is an expensive waste of time. The summits are held every year and cost billions of dollars, but they rarely produce any concrete results. The group is unable to reach consensus on important issues, and its decisions are often ignored by its members. The G20 is a relic of a bygone era, and it is time for it to be disbanded.”

Shayne Heffernan

 The G20 summits are very expensive. The 2020 summit in Osaka, Japan, cost an estimated $1.3 billion. This includes the cost of security, transportation, and accommodation for the delegates. The cost of the 2021 summit in Rome, Italy, was also estimated to be in the billions of dollars.

Ineffective: The G20 has been criticized for not being effective in addressing global economic challenges. The group has been unable to reach consensus on a number of important issues, such as trade, debt relief, and climate change.

Undemocratic: The G20 is dominated by a few powerful countries, such as the United States, China, and the European Union. This has led to accusations that the group is undemocratic and that it does not represent the interests of all countries.

The divisions, lack of mandate, and absence of a strong enforcement mechanism have made the G20 a largely ineffective forum for addressing global economic challenges. The group has been unable to reach consensus on a number of important issues, and its decisions have often been ignored by its members.

The Group of 20 was conceived in the throes of the 2008 financial crisis as a way of managing the global economy.

But finding consensus among members has been increasingly difficult in recent years.

Even before it began, the importance of the New Delhi summit was called into question when China’s Xi Jinping decided to skip the meeting and send his number two, Premier Li Qiang, to India instead.

No official reason was given for Xi’s absence, but the Asian giants have been at loggerheads over a border dispute and other issues, while Beijing is seeking to make US-led groupings such as the G20 more amenable to its own interests.

Russia’s seat is taken by Foreign Minister Sergei Lavrov, with diplomatic opprobrium and war crimes charges keeping the country’s leader Vladimir Putin from the summit.

United Nations chief Antonio Guterres warned Friday of growing global divisions, insisting countries must assume responsibility regardless of “whether it’s the president or the prime minister or the vice president” who is in New Delhi.

– Climate ‘out of control’ –

The backdrop to the talks could hardly be starker: the European Union’s climate monitor has said this year is likely to be the hottest in human history, with Guterres declaring on Friday the “climate crisis is spiralling out of control”.

G20 countries account for around 85 percent of global climate warming emissions, making action in the forum crucial to real progress.

India’s Modi has painted the summit as his country’s diplomatic coming of age — evidence of New Delhi’s clout and prestige on the global stage.

While spoilers may yet stop the bid, Modi does look set to secure one notable diplomatic victory, with several leaders expressing support for expanding the bloc into the “G21” by including the African Union as a permanent member.

The move would help burnish Modi’s image as a self-styled leader of the “Global South”, a bridge between developed and developing countries.

Modi argues developing nations need a greater say in global decision-making, and an invitation for the 55-member AU to join could come as soon as Saturday.

South Africa is currently the only G20 member from the continent.

But on Ukraine there was little sign of progress.

Moscow continues to press its allies to water down international condemnation of its invasion of Ukraine, throwing up a major roadblock to joint action.

Ahead of his arrival in New Delhi on Friday, US President Joe Biden insisted that the G20 can still “deliver”, even as markets fret that a trade war between the world’s two largest economies — the United States and China — is poised to escalate.

Many G20 leaders fear their countries are already at risk of becoming collateral damage as the big beasts of world trade lock horns.

Washington has restricted US technology transfers to the world’s second-largest economy and rumours have swirled that Beijing may be about to ban Apple’s ubiquitous iPhone — most of which are made in China.

China was overtaken as the world’s most populous country by India this year and growth is slowing, with economists pointing to structural problems such as a shrinking labour force, slower productivity and an overheated real estate market.

Shayne Heffernan

You may also like


Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.