G20 Summit 2023: Presiding over G20 summit is a big challenge before India: IMF Chief Economist

Posted on 13th Oct 2022 by rohit kumar

IMF Chief Economist Pierre-Olivier Gourinches said it would be difficult for India, which will chair the G20 summit next year, to bring countries together on some of the world's biggest challenges.

 

Gourinchas told PTI in an interview, "As we have seen, a challenge for the G20 (G20 Summit in India) right now is how to deal with the geo-economic fragmentation and the fragmentation of the geo-economy only reflects this fact. Shows that we have seen great tension after the Russian invasion of Ukraine.

 

This challenge will be for India in G-20

 

Replying to a question, the Speaker said, in the present environment, due to all the tensions related to geopolitical considerations, to some extent, the G20 (G20 Summit) finds it difficult to have such discussions around common objects. Thus India will face a daunting task, but one of the most important objectives will be to bring all countries together, to continue discussions, and maintain progress on important issues.

 

Great progress can be made from the G20

Describing the G-20 (India Host G20 Summit) as a very important institution, Mr. Gowrynchas said that the grouping is a place where there is governance that represents the majority of the global economy. It is not just a group of rich countries. It is something that has many voices. He said that a lot of progress can be made from the G20.

 

One of the things that we often talk about in the context of the G20 is the general framework, he said. This is a very important initiative. It is still finding its feet. We are disappointed by the lack of progress on the general framework at times in the Fund. But it's a really important initiative that can be done at the global community level, coming together and finding ways to address sustainability problems, the chief economist said, something that the IMF is very closely concerned with. is watching.

 

That said, the whole issue of the emergence of digital currencies, and crypto assets, how is it getting stable, and volatile? How should we be? There are huge externalities on a global scale regarding the emergence of these new devices. So how are we as a global community, should we organize this space? Gaurynchus said, should we regulate it? How should it be regulated? The cross-border aspect is going to be very important. So it's a normal good.

 

India will have to invest in these areas: IMF

The Chief Economist of the IMF said that India will have to take some concrete steps to become a USD 10 trillion economies. He said that investments are happening here in buildings and roads, but if there is an investment in human resources, human capital, health, education, etc., then India will move forward rapidly.

 

India is doing better than many countries

 

Pierre Olivier Gourinchas said that India is one of the largest economies. So, when it's growing at solid rates like 6.8 or 6.1, it's noticeable. In a picture where all other economies and advanced economies rarely grow at that pace, if India is still doing well, it is a good sign.

 

These countries are included in G20

The G20 or Group of Twenty is an intergovernmental forum of the world's major developed and developing economies. It includes 19 countries. Among these countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the USA, and European Union (EU).

 

Collectively, the G20 accounts for 85 percent of the global gross domestic product, 75 percent of international trade, and two-thirds of the world population, making it the leading platform for international economic cooperation.

 

These three countries will build Troika

India is currently included in the G20 Troika. India is also one of the three countries of the troika along with Indonesia and Italy. These three countries are the current, past, and future presidents of the G20.

 

During its presidency, India, Indonesia, and Brazil will form the troika. This will be the first time that the troika will include three developing countries and emerging economies, giving them a bigger voice.

 

The G20 currently includes 8 workstreams

The Indian Ministry of External Affairs said that the current 8 workstreams are included in the G20 (G20 Summit). Among these are the Finance Track, and Sherpa Track with (Global Macroeconomic Policy, Infrastructure Financing, International Financial Architecture, Sustainable Finance, Financial Inclusion, Health Finance, International Taxation, and Financial Sector Reforms).

 

In addition to the G20 members, it has been a tradition for the G20 Presidents to invite some visiting countries and International Organizations (IOs) to G20 meetings and summits.

 

Significantly, the G20 Summit brings together the countries of the world's leading economies and the European Union. Its member countries contribute 80 percent of the total GDP of the world. Whereas they account for 75 percent of the world trade and 60 percent of the total population of the world.

 

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