India's G20 Goals: What's the Big Plan?

 

On September 9, members of the Group of 20 (G20), an intergovernmental forum of the world’s largest economies that aims to address issues related to the global economy, will gather in New Delhi for their annual Leaders’ Summit. As this year’s G20 president and host, Indian Prime Minister Narendra Modi has been cannily using the events leading up to the summit both to promote India’s position on the world stage and to increase his own domestic clout. Furthermore, Modi sees the G20 presidency as an opportunity to showcase India’s credentials as a bridge between Global South countries and the West. The summit will therefore be the capstone to India’s chairmanship this past year. But what is the G20, why is this year’s summit important, and what should we expect from New Delhi?

The G20 was founded in 1999 in response to the Asian Financial Crisis. The crisis triggered the already-established Group of Seven (G7) to create a dialogue with other major economic powers that would address global economic challenges. The grouping initially began with 22 members in 1997, grew briefly to 33 in early 1999, and then assumed its final form comprised of 19 countries and the European Union in September of that year. Together, member nations now form about 80 percent of the world’s economic output.

During the 2008 financial crisis, the G20 emerged as an institution that facilitated crucial cooperation between the central banks and finance ministers of member countries. Since then, the grouping has had limited success in accomplishing broad policy objectives such as trade liberalization, but more success in implementing microeconomic changes like strengthening domestic financial systems and combatting terrorist financing.

Thus, the G20 Leaders’ Summit presents India with a risk and an opportunity. India will need to carefully navigate its existing partnerships in order to produce cooperation and any modicum of consensus on a diplomatic and development agenda that aligns with India’s professed position as a mediator between the Global North and the Global South. If Modi can pull this off, it will certainly cement India’s declared position. If not, India’s claims may ring hollow in the future. After all, it is easier to achieve consensus in the absence of crisis. Doing so during conflict takes skillful leadership.