G20 Declaration recognises global challenges. Execution plans vital

The paragraph on Ukraine has distinguished itself from the Bali declaration by avoiding any mention of Russia at all. It calls for “a comprehensive just and lasting peace in Ukraine” while stressing that “all states must refrain from the threat or use of force to seize territories”. In other words, the reference to Russia is unmistakable but there is no overt citing of any specific country.

Deft Diplomacy

The wording may have been criticised by the Ukraine but, as the statement notes, the G20 is an international economic forum. It is not the platform to raise geopolitical and security issues. Clearly, the deft diplomacy used by India and other emerging markets convinced even western countries of this reality, leading to consensus on this delicate issue. Besides, the human suffering of the Ukraine war was highlighted in terms of the global impact on food and energy security, supply chains and inflation especially affecting low-income countries.

The declaration also welcomes the entry of the 55-member African Union into the G20 making it the second regional organisation after the European Union to become a permanent member. The participation of the AU sets right an imbalance in the G20 membership that had only South Africa as a representative from the world’s second largest continent. It will now be possible for African countries to have a strategic dialogue with others in the premier global economic community. It will be able to ensure that the diverse interests and requirements of the vast continent are kept in mind while crafting developmental policies for the world. While the entry has been supported by all members, it is seen as a personal triumph for Prime Minister Narendra Modi who initiated the move soon after taking over the India Presidency.

Commitments To Net Zero

One of the dominant themes of the declaration has been climate change with a special emphasis on financing to help in the energy transition for developing and least developed countries. It has set the need of developing countries at $5.8-5.9 trillion over the next six years till 2030 for implementing the target of carbon neutrality and net zero emissions. While these ambitious targets are laudable indeed, the reality is that the developed world has still not met the earlier commitment of $100 billon in climate finance based on the Paris Agreement.

On fossil fuels, the declaration has fallen short of climate activists’ pleas for phasing out and instead used the term “phasedown of unabated coal power in line with national circumstances.” The dilution is clearly in line with the needs of developing economies like India and China that are finding it difficult to easily dispense with coal-based power. At the same time, it has committed to phase out of inefficient fossil fuel subsidies.

Digital Infrastructure

It is in building digital infrastructure, however, that India’s mark is most evident. India’s plan to build and maintain a Global Digital Public Infrastructure Repository (GDPIR), a virtual repository of DPI has been highlighted in the declaration. A framework has been evolved for the development and governance of DPI along with the One Future Alliance (OFA), a voluntary initiative to help low- and middle-income countries in this sector.

The Declaration has been quite strident in its demand for reforming the international development finance system to enable it to support developing countries facing unprecedented shocks in recent times. These are not spelt out but the impact of the pandemic followed by the Ukraine war leading to inflationary pressures and collapse of supply chains has had a huge impact on many developing economies. It says the G20 is working to deliver bigger and more effective multilateral development banks (MDBs). It underscores the need to increase financing levels as well as raise the representation of emerging economies in MDBs. These proposals are welcome in view of the pain being felt by emerging economies in recent years.

The New Delhi Declaration has thus taken a comprehensive overview of the challenges facing both the Global North and South in light of the current geopolitical situation. The fact that there has been a harmonious agreement on an enormous number of issues – the list is too long to be enumerated in a single article – indicates the group is operating productively. Some proposals may not finally fructify but many like those related to the digital economy are set to become a reality. The Group of 20 – now 21 – needs to plan for the future to ensure effective implementation of all these commitments.

Sushma Ramachandran is a senior journalist based in Delhi. Views are personal, and do not represent the stand of this publication.