G20 Common Framework and G20 Members UPSC pre 2022 , 2020

 G20-based question in UPSC pre 2020, 2022.

 

Question on G20 was expected because India was about to become the president of G20 on 1st December 2022.

 

But the question asked in 2022 was random and tough.

 

On the other hand, the question asked on G20 pre-2020 was a medium-level question based on member countries. We will see that question and in the end, I will tell you a trick to remember member countries of G7 and G20.

 

With reference to the “G20 Common Framework”, consider the following statements:

1. It is an initiative endorsed by the G20 together with the Paris Club.

2. It is an initiative to support Low-Income Countries with unsustainable debt.

Which of the statements given above is/are correct?

(a)        1 only

(b)        2 only

(c)        Both 1 and 2

(d)        Neither 1 nor 2

 

Solution -

C

 

What is G20 Common Framework?

It is an initiative endorsed by the G20 and the Paris Club to support Low-Income Countries[LIC] with unsustainable debt.

 

Why the G20 Common framework?

 It is a way to temporarily ease the financing constraints for LIC and free up scarce money that they can instead use to mitigate the human and economic impact of the COVID-19 crisis.

 

 

Basic fact about G20

 

What is G20?

An informal group of 19 countries and the European Union, with representatives of the International Monetary Fund and the World Bank.

 

Why is G20 important?

 

It represents

World GDP	>80%
International trade	75%
world population	60%

 

When and why was G20 formed?

It was formed in 1999.

 

In 1997-1999 ASIAN Financial Crisis- Which sowed the seeds for G20.

Amid the 2008 Financial Crisis-It was decided that the G20 leaders would begin meeting once annually.

 

Who are G20 Members?

 

Here I will not only give you a list of members. along with it I will give you a trick and question asked in UPSC pre 2020 to help you understand the requirement.

 

 

It has 19 countries and the 1 European Union namely,

- Argentina, Australia, Brazil, Canada, China, France, Germany, India,

Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia,

South Africa, Turkey, UK, USA, EU

 

In which one of the following groups are all the four countries members of G20 ? [2020]

 

(a) Argentina, Mexico, South Africa and Turkey

(b) Australia, Canada, Malaysia and New Zealand

(c) Brazil, Saudi Arabia and Vietnam

(d) Indonesia, Japan, Singapore and South Korea

 

Solution - A

 

Trick to remember G7 and G20 member

G 7 & G 20 member

 

G8 - GJ FABRIC +EU          

G20 = G8 + BRICS + India ke bhai + Pakistan ke bhai

 

G- Germany                    

J- Japan                        

F- France                       

A-America

B-Britain(UK)

R-Russia

I-Italy

C-Canada

 

G7= UK, Canada, France, Germany, Italy, Japan, the USA, EU.

Earlier it was G8 but Russia was expelled after Annexation of Crimea from Ukraine. 

BRICS - brazil, Russia, India, China, South Africa

Pakistan ke bhai - Turkey + Saudi Arabia + Indonesia----Pakistan is not a member

India ke bhai - Mexico + S.Korea + Australia + Argentina

G20 Meetings

2019- Osaka, Japan- Cross border flow of data - India not signed Osaka declaration

2020- Saudi Arabia

2021- Italy

2022- Indonesia

2023- Delhi

 

Old but potential topic for tough questions in Mains and pre

 

G20 Osaka declaration - The main issue with the declaration was Cross border flow of Data.

 

Japanese PM Shinzo Abe called this initiative ‘Data Free Flow with Trust’ (DFFT)

 

Why India refused to sign Osaka Declaration?

 

Tip - Use the below point to defend India's view on the data localization issue.

 

1. India believes that all countries must individually manage data.

 

Otherwise, MNCs might use data for their commercial benefits, harming the privacy of citizens and the sovereign interests of the States. (e.g. certain Chinese apps Banned by Govt.)

 

 

2. Such free flow of data may be misused for influencing public opinion through targeted advertisements and articles on social media. (e.g. The alleged Russian hand in Trump's election.)

 

3. Data is a new form of wealth. 

The US opposes data localization policies so, this entire matter should be discussed within WTO and not outside of it.

 

Memorise the conclusion or at least use the keyword for mains answer

 

While India understands and appreciates the role of  Information and Communication Technology (ICT) in economic development and good governance.

 

The issue of data flow requires wider global cooperation without undermining an individual’s privacy or a State’s sovereign interests.

Considering these facets, India has refused to sign the Osaka declaration on cross-border data flow.

 

How G20 Works?

 

The work of G20 is divided into two tracks:

What is the Finance track and Sherpa track in G20 means?

 

The finance track comprises all meetings with G20 finance ministers and central bank governors and their deputies.

 

Its focuses on monetary and fiscal issues, financial regulations, etc.

 

The Sherpa track focuses on broader issues such as political engagement, anti-corruption, development, energy, etc.

 

Each member country is represented by its Sherpa; who plans, guides, implements, etc. on behalf of the leader of their respective country.

 

How G20 president decided?

 

Presidency rotates annually according to a system that ensures a regional balance over time.

 

For the selection of the presidency, the 19 countries are divided into 5 groups, each having no more than 4 countries.

 

How does G20 function?

 

G20 does not have a permanent secretariat or Headquarters.---Important for pre.

 

Instead, the G20 president is responsible for bringing together the G20 agenda in consultation with other members and in response to developments in the global economy.

 

What is TROIKA?---Pre

 

TROIKA: Every year when a new country takes on the presidency, it works hand in hand with the previous presidency and the next presidency and this is collectively known as TROIKA.

 

This ensures continuity and consistency of the group’s agenda.

 

 

What is Financial Stability Board[FSB], 2009 [HQ: BASEL]?

- FSB is a brainchild of G20.

 

- It main focus on Financial monitoring at global level, Coordination between national financial regulators bodies.

 

FSB is known for its Legal Entity Identifier (LEI) Number.

 

What is LEI?

LEI is 20-digit alphanumeric code.

It is like a global “Aadhar card” number for companies.

 

WHY is LEI needed?

 

Even if a company is blacklisted by Indian banks, it could apply for loans overseas, and those overseas bankers may not be aware of the company’s history.

 

LEI’s Indian agent: Clearing Corporation of India.

Lets revise the concept using Question