G-20 Summit in Rome- Relevance for UPSC Exam
- GS Paper 2: International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
G-20 Summit in Rome- Context
- Recently, the leaders of the G20 met in Rome, Italy for the first in-person meeting in two years after COVID-19 Pandemic.
G20 Summit in Rome- Key Points
- G-20 Leaders discussed the biggest issues facing the global community today, including-
- COVID-19 pandemic,
- Climate change,
- A major tax agreement, and
- Steps to address concerns regarding global economic growth and stability.
G20 Summit in Rome- On Covid-19
- The focus was on vaccine production and distribution with assurances of support to WHO’s target of-
- Vaccinating 40% or more of the global population against COVID-19 by 2021, and
- Vaccination of at least 70% by mid-2022.
- Cooperation among G-20 countries to overcome supply and financing constraints. This is expected to boost the supply of vaccines in developing countries.
G20 Summit in Rome- On climate change
- G20 leaders recommitted their nations to provide $100 billion a year toward adaptation, mitigation, and green technologies, focusing on the needs of developing countries.
- G20 leaders committed to limiting global warming to 1.5° C and identified sustainable and responsible consumption and production as “critical enablers”.
G20 Summit in Rome- On post-covid economic recovery
- Issues: Post covid-9, countries are facing rising inflation, spiking energy prices, and alarming supply chain bottlenecks, etc.
- G20 leaders affirm that national stimulus policies would not be removed prematurely.
- it would remain a challenge to walk the tightrope between preserving financial stability and fiscal sustainability.
G20 Summit in Rome- Global tax agreement
- G20 leadership agreed to slap multinationals with a minimum 15% tax to create “a more stable and fairer international tax system”.
- Impact: This would impact the tech titans of Silicon Valley, as this initiative would make it harder for such companies to benefit from locating themselves in relatively lower-tax jurisdictions.
- Background: This OECD-led reform enjoys the support of 136 countries, which account for more than 90% of global GDP, and is likely to enter into force in 2023 or after.
- Associated challenge: Nations such as the U.S. are divided on whether to approve this proposal domestically and unless there is unanimity amongst the discussants, the initiative risks facing implementation delays.
G-20 Summit in Rome- Conclusion
- The G20 meeting has come at a critical moment for the global political economy. If it results in timely, effective, coordinated action across major nations, hope for recovery will remain afloat.