Relevance: GS-2 (Global Governance, International Groupings)

• Source: G20 Secretariat; recent global commentary

G20 Facing Challenges in a Fragmented Global Order

Amid global geopolitical tensions and declining cooperation between major powers, analysts argue that the G20’s ability to deliver collective decisions is weakening. The upcoming summits face challenges in forging consensus on conflicts, climate finance, and global economic stability.

What is the G20 & Why It Matters?

• Grouping of 19 countries + European Union, representing 85% of global GDP, 75% of global trade, and two-thirds of humanity.
• Established in 1999 to bring emerging and advanced economies together for financial stability, global growth, and crisis response.
• Major successes include:
  • Post-2008 financial coordination
  • Pandemic recovery dialogue
  • Global minimum tax framework
  • India’s 2023 Delhi Declaration

Why Concerns Are Rising?

Declining Cooperation

• Sharp divisions over Ukraine conflict, Middle East crisis, and U.S.–China rivalry hinder joint statements.
• Absence of leaders in recent summits signals lower political prioritisation.

Fragmented Global Governance

• Rise of parallel blocs (BRICS+, Quad) shifts focus away from the G20.
• Climate finance commitments repeatedly delayed.

Consensus Fatigue

• Increasing membership diversity makes universal agreement harder.

Way Ahead

• Strengthen issue-based coalitions within G20 (digital economy, health, climate tech).
• Institutionalise the G20 Secretariat for continuity across presidencies.
• Prioritise deliverables over declarations, focusing on debt restructuring, digital public infrastructure, and resilient supply chains.
• Promote balanced representation, including Global South priorities.

Exam Hook – Prelims Question

Q. Which of the following statements about G20 is correct?

1. It accounts for more than half of the world’s population.
2. The G20 was created after the 2008 financial crisis.

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (a)
(It was created in 1999, much before the 2008 crisis.)