G20: Empowering Collaboration for a Global Economy
- Full form of G20: The Group of Twenty
- Founded on: 26 September, 1999
- Member States: 21 member states including European Union and African Union
- Chairman: President of Brazil, Lula da Silva
- Website: www.g20.org
Overview
The Group of Twenty, commonly referred to as the G20, is a premier forum for international economic cooperation. Comprising 19 countries and the European Union, the G20 brings together major advanced and emerging economies to discuss and coordinate policies pertaining to global economic stability and sustainable development. The G20 consists of 19 countries and the European Union, representing around 85% of global GDP, 75% of international trade, and two-thirds of the world’s population. Established in 1999 in response to the financial crises of the late 1990s, in this article by Academic Block we will explore how the G20 has evolved into a crucial platform for addressing pressing global economic challenges globally.
What is the G20?
The G20 (Group of Twenty) is an intergovernmental forum that brings together the world's major economies to discuss economic policies, financial stability, and other global issues. It serves as a platform for international cooperation on key economic matters.
Why Was the G20 Formed?
The G20 was established to bring together the world's largest economies to discuss and coordinate policies on global economic stability. It was formed in 1999 in response to the 1997 Asian Financial Crisis, which highlighted the need for a more inclusive global economic forum beyond the G7 (Group of Seven).
Initially, the G20 functioned as a meeting of finance ministers and central bank governors. However, following the 2008 global financial crisis, the G20 was elevated to a leaders' summit to address urgent economic challenges on a broader scale.
G20 Member Countries
The G20 consists of 19 individual countries and the European Union (EU). The member countries are:
Here’s the list of G20 member countries in a table format with two columns:
Structure and Functioning of the G20
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G20 Presidency : The G20 presidency rotates annually among its members. The country holding the presidency organizes and hosts the G20 Summit, setting the agenda and priorities for that year.
- 2023 : India
- 2022 : Indonesia
- 2021 : Italy
- 2020 : Saudi Arabia
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G20 Summit : The G20 Leaders’ Summit is the main event of the G20, where heads of state and government from member countries discuss economic and financial issues. The summit usually takes place once a year.
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Ministerial Meetings : Apart from the Leaders’ Summit, the G20 holds meetings at various levels, including:
- Finance Ministers and Central Bank Governors’ Meetings
- Foreign Ministers' Meetings
- Trade and Investment Meetings
- Climate and Energy Ministerial Meetings
- Digital Economy Meetings
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Engagement Groups : The G20 works with different engagement groups, representing businesses, civil society, and research institutions. These include:
- B20 (Business 20) : Business community
- C20 (Civil 20) : Civil society organizations
- T20 (Think Tank 20) : Research institutions and academics
- L20 (Labour 20) : Trade unions
- Y20 (Youth 20) : Youth organizations
Recent G20 Presidencies:
Purpose of G20
Key Areas of Focus for the G20
The G20 addresses a wide range of economic and global challenges, including:
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Global Economic Stability : One of the primary goals of the G20 is to maintain financial stability worldwide. The group works on policies related to economic growth, inflation control, and job creation.
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Trade and Investment : The G20 promotes free and fair-trade policies, reduces trade barriers, and encourages investments to boost economic development.
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Climate Change and Sustainability : The G20 has taken significant steps to address climate change, carbon emissions, and sustainable development. It supports international agreements like the Paris Agreement and promotes renewable energy solutions.
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Digital Economy and Innovation : With the rise of technology, the G20 focuses on cybersecurity, digital transformation, artificial intelligence (AI), and data protection.
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Health and Pandemic Response : The COVID-19 pandemic highlighted the importance of global cooperation in health. The G20 has worked on vaccine distribution, pandemic preparedness, and strengthening healthcare systems.
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Gender Equality and Inclusion : The G20 promotes women’s empowerment, education, and equal opportunities to foster inclusive economic growth.
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Debt Relief and Financial Reforms : The G20 has played a major role in debt relief programs for struggling economies, particularly during economic crises.
Difference Between G20 and G7 (G20 Vs. G7)
Major Achievements of the G20
(i)Response to the 2008 Global Financial Crisis
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Coordinated a $1.1 trillion economic stimulus package to revive the global economy.
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Strengthened the International Monetary Fund (IMF) and World Bank to support financial stability.
(ii) Paris Climate Agreement (2015)
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The G20 supported the Paris Agreement, committing to reducing greenhouse gas emissions.
(iii) COVID-19 Response (2020)
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Launched the G20 Debt Service Suspension Initiative (DSSI) to help struggling nations.
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Supported COVAX, a global vaccine-sharing initiative.
(iv) Sustainable Development Goals (SDGs)
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Aligned policies with UN SDGs to promote sustainability, poverty reduction, and economic development.
Criticism of the G20
Despite its achievements, the G20 has faced several criticisms:
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Lack of Binding Agreements : Unlike organizations such as the United Nations (UN), G20 agreements are non-binding, making it difficult to enforce policies.
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Exclusion of Smaller Economies : Many smaller and developing countries are not included in the G20, limiting their representation on global economic issues.
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Climate Commitments Not Fully Implemented : Although the G20 has discussed climate policies, implementation gaps remain, particularly regarding carbon reduction commitments.
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Political Disagreements : Tensions between major powers, such as the US-China trade war, often impact the effectiveness of G20 decisions.
Future Prospects of G20 (Group of Twenty)
Looking ahead, the G20 faces both challenges and opportunities as it seeks to fulfill its mandate of promoting global economic stability and sustainable development. Some key areas for future action include:
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Recovery from the COVID-19 Pandemic: The G20's focus in the near term will be on facilitating a swift and inclusive recovery from the COVID-19 pandemic. This will require continued coordination of economic policies, investment in healthcare systems, and support for vulnerable populations and sectors.
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Climate Change and Environmental Sustainability: Addressing climate change and promoting environmental sustainability will remain a top priority for the G20. This includes enhancing ambition in reducing greenhouse gas emissions, increasing investment in renewable energy and clean technologies, and supporting adaptation and resilience measures.
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Inclusive Growth and Development: The G20 must redouble its efforts to promote inclusive growth and reduce inequality within and among countries. This requires policies that foster job creation, improve access to education and healthcare, and empower marginalized communities to participate in and benefit from economic development.
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Digital Transformation and Technological Innovation: Embracing digital transformation and technological innovation will be critical for driving economic growth and competitiveness in the 21st century. The G20 can play a key role in shaping global norms and regulations governing digital trade, data privacy, cybersecurity, and emerging technologies.
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Global Governance and Multilateralism: Strengthening global governance and multilateral institutions will be essential for addressing transnational challenges such as pandemics, climate change, and cyber threats. The G20 can leverage its convening power to promote cooperation and coordination among international organizations, governments, and other stakeholders.
Final Words
In conclusion, the Group of Twenty (G20) serves as a vital forum for international economic cooperation, bringing together major advanced and emerging economies to address pressing global challenges. While the G20 has achieved notable successes in promoting economic stability and sustainable development, it faces ongoing challenges and criticisms that must be addressed to ensure its continued relevance and effectiveness in the years to come. By embracing inclusivity, cooperation, and innovation, the G20 can contribute to building a more prosperous, equitable, and resilient world for future generations. Hope you got detailed information about G20, before leaving please provide your valuable views to make this article better. Thanks for Reading!
Questions and answers related to the Group of Twenty (G20):
The G20 is not governed by a single authority. Its leadership rotates annually among member countries. The current president (for the term Dec-2024 to Nov-2025) is South Africa, which steers the agenda and hosts the summit. Decisions are made by consensus among heads of state & finance ministers.
The G20 is a premier global forum uniting major developed & emerging economies. It coordinates policies on trade, finance, climate change, sustainable development, and global economic stability. Summits and working-groups address crises (e.g. financial, health), set standards, and drive cooperative action.
G20 stands for “Group of Twenty”, a forum of nineteen countries plus two regional economic organisations (the European Union & African Union) that collaborate on global economic governance.
South Africa will host the 2025 G20 Leaders’ Summit, with the presidency of the G20 from 1 December 2024 to 30 November 2025. The summit will be held in Johannesburg on 22-23 November 2025, its first ever in the city and on the African continent.
The G20 was founded in 1999 after the Asian financial crisis (1997-98). Its inaugural meeting of Finance Ministers & Central Bank Governors took place 15-16 December 1999 in Berlin, formally establishing the forum.
The aim of the G20 is to strengthen international economic cooperation, ensure financial stability, and promote sustainable, inclusive growth. It seeks to reduce global risks, respond to crises, reform global financial architecture, and address shared challenges like climate change, poverty, and inequality.
The purpose of the G20 is to act as a platform where leading economies collaborate to manage global challenges—economic crises, inequities, trade disruptions and environmental threats—through dialogue, coordinated policy, and shared commitments. It helps shape norms, monitor global trends, and drive reforms.
“G20” stands for Group of Twenty. It represents a coalition of the world’s major economies, both developing and developed, joined by the European and African Unions, to address global economic governance and policy coordination.
Members include: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Türkiye, UK, USA, plus the European Union & the African Union.
The G20 comprises these 19 nations: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Türkiye, United Kingdom, United States; plus the European Union & African Union.
South Africa is the host country for G20 in 2025, holding the rotating Presidency from 1 December 2024 to 30 November 2025, and hosting the G20 Leaders’ Summit in Johannesburg.
The 2025 G20 Leaders’ Summit in Johannesburg, South Africa is set for 22-23 November 2025.
The theme for G20 2025 is “Solidarity, Equality, Sustainability.” South Africa plans to foreground development of Africa and the Global South while promoting inclusive growth, food security, and sustainable innovation.
South Africa’s G20 priorities include: stabilising debt for low-income countries; advancing climate finance; boosting industrialisation & employment; food security; innovation & AI for sustainable development; and leveraging critical minerals.
The G20 plays a critical coordinating role in climate change: mobilizing finance for climate-vulnerable nations, setting emission reduction goals, supporting renewable energy & disaster resilience, and aligning policies across developed & developing members.
The G20 consists of 19 sovereign nations plus two regional bodies: the European Union and the African Union.
The G20 shapes global economic governance, fosters cooperation among major developed & emerging economies, manages financial crises, influences trade rules, and seeks sustainable inclusive growth to reduce disparities & volatility.
G20 Summit 2024 was held in Rio de Janeiro on 18-19 Nov under the theme “Building a Just World and a Sustainable Planet.” Priorities were social inclusion, fighting hunger, energy transition, global governance reform. Brazil launched Global Alliance Against Hunger & Poverty.
The 2025 G20 Summit in Johannesburg will mark the first time an African nation hosts the Leaders’ Summit. It aims to spotlight Global South, critical minerals, food security, inclusive growth and AI. Schedule includes Sherpa & Finance tracks culminating in Leaders’ Summit 22-23 November.
There are no formal criteria set in a charter for G20 membership. Members are chosen based on global economic weight, geopolitical influence, regional representation. The presidency rotates among members, and invitees & regional blocs may join.
The G7 is a club of seven advanced democracies focusing more narrowly on political, security & economic stability issues. G20 is broader: it includes both developed & emerging economies (~85% world GDP), addresses global economic, climate, trade, development & governance challenges.
Role of Asian countries in G20
Economic Significance
Growth Engines: Several Asian countries, including China, Japan, India, and South Korea, are among the world’s largest economies and key drivers of global economic growth. Their economic dynamism, large consumer markets, and export-oriented industries contribute to shaping the trajectory of the global economy.
Trade and Investment: Asia is home to some of the world’s busiest trading hubs and production centers, facilitating the flow of goods, services, and investment across borders. Asian countries play pivotal roles in global supply chains, export-oriented industries, and international trade agreements, influencing patterns of trade and investment worldwide.
Policy Influence
Macroeconomic Stability: Asian countries’ monetary and fiscal policies have significant implications for global macroeconomic stability, given their large foreign exchange reserves, trade surpluses, and currency exchange rates. Their decisions on interest rates, exchange rate management, and fiscal stimulus measures can impact financial markets and investor confidence globally.
Financial Regulation: Asian financial markets, including stock exchanges, bond markets, and banking systems, are integral components of the global financial system. Asian countries contribute to shaping international financial regulation, standards, and best practices, particularly in areas such as banking supervision, capital markets development, and anti-money laundering efforts.
Global Challenges
Climate Change: Several Asian countries are among the world’s largest emitters of greenhouse gases and face significant environmental challenges, including air and water pollution, deforestation, and natural resource depletion. Asian countries’ participation in G20 discussions on climate change mitigation, renewable energy, and sustainable development is crucial for addressing these pressing global challenges.
Health Security: Asia has been at the forefront of global health crises, including infectious disease outbreaks such as SARS, MERS, and most recently, the COVID-19 pandemic. Asian countries’ experiences with pandemic preparedness, public health infrastructure, and vaccine development inform G20 discussions on health security, pandemic response, and strengthening global health governance.
History of the G20
Origin and Establishment
Asian Financial Crisis (1997-1998): The seeds of the G20 were sown in the aftermath of the Asian financial crisis, which began in Thailand in 1997 and quickly spread to other Asian economies, causing widespread currency devaluations, economic contractions, and social upheaval. The crisis underscored the interconnectedness of global financial markets and the need for enhanced international cooperation to address systemic vulnerabilities.
G7’s Response: At the time, the Group of Seven (G7) industrialized nations – comprising the United States, Japan, Germany, the United Kingdom, France, Italy, and Canada – was the primary forum for international economic coordination. However, the G7’s exclusive membership raised concerns about the representation of emerging economies and developing countries in global economic governance.
Creation of the G20: In response to these concerns, finance ministers and central bank governors from 19 major advanced and emerging economies, along with representatives from the European Union, convened the first meeting of the G20 in Berlin, Germany, in December 1999. The establishment of the G20 reflected a broader recognition of the need for a more inclusive forum that would bring together a diverse group of countries to discuss and coordinate policies on global economic issues.
Early Years
Focus on Financial Stability: In its early years, the G20 primarily focused on coordinating policies to promote financial stability and address vulnerabilities in the international financial system. Meetings of finance ministers and central bank governors provided opportunities for dialogue and cooperation on issues such as exchange rate volatility, capital flows, and financial regulation.
Expansion of Agenda: Over time, the G20’s agenda expanded to encompass a broader range of economic and financial issues, reflecting the growing interconnectedness of the global economy. The group began to address topics such as trade liberalization, economic growth, development finance, and sustainable development.
Global Financial Crisis (2008-2009)
Turning Point: The global financial crisis, triggered by the collapse of Lehman Brothers in 2008, represented a watershed moment for the G20. As the crisis spread rapidly across borders, causing a severe recession and widespread financial distress, world leaders recognized the urgent need for coordinated action to stabilize financial markets and restore confidence in the global economy.
G20 Leaders’ Summits: In response to the crisis, the G20 held its first-ever leaders’ summit in Washington, D.C., in November 2008, bringing together heads of state and government to discuss policy responses to the crisis. Subsequent summits in London, Pittsburgh, Toronto, Seoul, Cannes, Los Cabos, St. Petersburg, Brisbane, Antalya, Hangzhou, Hamburg, Buenos Aires, Osaka, and Riyadh provided platforms for leaders to coordinate stimulus measures, strengthen financial regulation, and reform international financial institutions.
Post-Crisis Era
Policy Coordination: In the years following the global financial crisis, the G20 continued to play a central role in coordinating macroeconomic policies, promoting financial stability, and addressing emerging challenges such as climate change, inequality, and digital transformation. The group also intensified efforts to reform international financial institutions, enhance financial regulation, and improve the resilience of the global financial system.
Annual Summits: The annual G20 summits emerged as key moments for leaders to assess the state of the global economy, identify priority areas for action, and make commitments to address pressing challenges. The summits provided opportunities for dialogue, cooperation, and consensus-building among leaders from diverse political and economic backgrounds.
Recent Developments
COVID-19 Pandemic: The COVID-19 pandemic, which emerged in late 2019, presented an unprecedented challenge to the global economy, health systems, and social cohesion. In response, the G20 mobilized resources, coordinated policy responses, and launched initiatives to mitigate the health, economic, and social impacts of the crisis. Efforts have focused on vaccine distribution, debt relief for low-income countries, economic stimulus measures, and strengthening global health governance.
Future Outlook: As the world grapples with the ongoing effects of the pandemic and confronts other systemic challenges such as climate change, technological disruption, and geopolitical tensions, the G20 remains a critical forum for international economic cooperation. Looking ahead, the G20 faces opportunities to drive sustainable and inclusive recovery, promote global health security, advance digital transformation, and strengthen multilateralism in the face of evolving global threats and uncertainties.
Criteria for G20 memberships
Economic Size and Importance: The G20 aims to bring together the world’s major economies to address global economic challenges. As such, countries with large and influential economies are generally considered for membership. Factors such as gross domestic product (GDP), GDP per capita, trade volume, and foreign exchange reserves are important indicators of economic size and importance.
Regional Representation: The G20 seeks to achieve a balance of representation across different regions of the world. While some regions, such as North America and Western Europe, are represented by individual countries (e.g., United States, Germany), others may be represented by regional organizations or blocs (e.g., European Union). Regional diversity ensures that a wide range of perspectives and interests are represented within the group.
Systemic Importance: In addition to economic size, countries may be considered for G20 membership based on their systemic importance to the global economy. This includes factors such as the size and stability of their financial markets, the extent of their integration into the global trading system, and their role in international trade and investment flows.
Contribution to Global Governance: G20 members are expected to actively contribute to global economic governance and participate constructively in international cooperation efforts. This may involve adhering to international norms and standards, honoring financial commitments, and engaging in multilateral initiatives to address shared challenges such as financial stability, trade liberalization, and sustainable development.
Recognition and Acceptance by Existing Members: Ultimately, decisions regarding G20 membership are made by the existing members of the group. Prospective members must receive the approval and endorsement of the current G20 participants, who assess their qualifications and suitability for membership based on the aforementioned criteria.
Key topics discussed in G20 Summits
Global Economic Outlook: G20 leaders typically assess the state of the global economy, including trends in economic growth, employment, inflation, and trade. They exchange views on current economic challenges and prospects for recovery, and discuss policy responses to promote sustainable and inclusive growth.
Financial Stability and Regulation: G20 leaders discuss measures to strengthen the stability and resilience of the global financial system. This may include discussions on financial regulation, supervision, risk management, and efforts to address systemic risks, such as those posed by financial institutions deemed “too big to fail.”
Trade and Investment: G20 summits provide opportunities for leaders to address issues related to international trade and investment. Discussions may focus on promoting open, transparent, and rules-based trade, reducing trade barriers and distortions, and advancing efforts to liberalize trade and investment flows.
Climate Change and Sustainable Development: G20 leaders engage in discussions on environmental sustainability, climate change mitigation, and sustainable development. This may include commitments to reduce greenhouse gas emissions, support renewable energy deployment, and promote sustainable infrastructure development.
Digital Economy and Technological Innovation: With the increasing digitization of the global economy, G20 leaders discuss policies related to the digital economy, including digital trade, data governance, cybersecurity, and the impact of technological innovation on economic growth, productivity, and job creation.
Inclusive Growth and Social Cohesion: G20 summits address issues of income inequality, poverty alleviation, and social inclusion. Leaders discuss strategies to promote inclusive growth, enhance access to education and healthcare, and address social disparities to ensure that the benefits of economic growth are shared equitably.
Global Health and Pandemic Preparedness: Recent G20 summits have placed greater emphasis on global health issues, particularly in the wake of the COVID-19 pandemic. Leaders discuss pandemic preparedness, vaccine distribution, healthcare infrastructure, and international cooperation in addressing health emergencies.
Infrastructure Investment and Development: G20 leaders discuss strategies to promote infrastructure investment and development, particularly in areas such as transportation, energy, and telecommunications. This may include discussions on financing mechanisms, public-private partnerships, and infrastructure resilience.
Financial Inclusion and Development Finance: G20 summits address issues related to financial inclusion, access to finance, and development financing for low-income countries. Leaders discuss measures to enhance access to banking services, promote financial literacy, and mobilize resources for sustainable development projects.
Geopolitical Risks and Global Governance: G20 leaders exchange views on geopolitical risks, regional conflicts, and challenges to international peace and security. Discussions may cover topics such as terrorism, nuclear proliferation, geopolitical tensions, and efforts to strengthen global governance and multilateral institutions.
Relationship between the G20 and the United Nations
Mandates and Objectives
G20: The G20 is primarily focused on international economic cooperation and policy coordination among major advanced and emerging economies. It was established in response to the need for a more inclusive forum to address global economic challenges, such as financial stability, trade liberalization, and sustainable development.
United Nations: The United Nations is a global organization founded to maintain international peace and security, promote human rights, foster social and economic development, and provide a forum for dialogue and cooperation among member states. It encompasses a wide range of specialized agencies, programs, and bodies that work on diverse issues, including economic development, environmental protection, health, education, and humanitarian assistance.
Scope of Activities
G20: The G20’s agenda primarily focuses on economic and financial issues, including macroeconomic policy coordination, financial regulation, trade, investment, and development finance. While the G20 may address broader issues such as climate change and sustainable development, its primary emphasis remains on economic governance and cooperation.
United Nations: The United Nations addresses a wide range of global challenges, including peace and security, human rights, sustainable development, climate change, humanitarian crises, and global health. It serves as a platform for multilateral diplomacy, negotiation, and consensus-building on pressing global issues, with a focus on promoting peace, prosperity, and human well-being.
Complementarity and Collaboration
Policy Coordination: The G20 and the United Nations collaborate on issues of mutual concern, with each organization bringing its expertise and resources to the table. While the G20 focuses on economic policy coordination and financial stability, the United Nations provides a broader framework for addressing social, environmental, and humanitarian challenges.
Implementation of Agreements: The G20 and the United Nations work together to implement international agreements and commitments, such as the Sustainable Development Goals (SDGs) and the Paris Agreement on climate change. The G20’s endorsement of these agreements provides political momentum and support for their implementation within the broader UN framework.
Representation and Engagement
Membership: The G20 comprises major advanced and emerging economies, as well as representatives from the European Union, totaling 19 individual countries and the EU. In contrast, the United Nations has a universal membership of 193 member states, providing a more inclusive platform for global dialogue and cooperation.
Engagement: While the G20 operates independently of the United Nations, it often consults with the UN and its specialized agencies on issues within their respective mandates. UN representatives, including the Secretary-General and relevant agency heads, may participate in G20 meetings as observers or guest speakers, providing input and expertise on specific topics.
Policy Alignment and Consistency
Policy Synergy: The G20 and the United Nations strive to align their policies and initiatives to ensure coherence and consistency in addressing global challenges. This includes promoting policy synergies between economic growth, social development, and environmental sustainability to achieve sustainable and inclusive outcomes.
Policy Integration: Efforts are made to integrate economic, social, and environmental considerations into policymaking processes at both the G20 and UN levels, recognizing the interdependence of these dimensions and their impact on global well-being.
Academic References on the G20
- Kirton, J. J., & Kokotsis, E. (Eds.). (2013). The Group of Twenty (G20). Routledge.
- Hölscher, J., & Tosun, J. (Eds.). (2013). The G20, Development and the International Financial Architecture. Palgrave Macmillan.
- Kirton, J. J., & Bracht, C. (Eds.). (2016). G20 Governance for a Globalized World. Routledge.
- Broome, A., & Seabrooke, L. (Eds.). (2017). Towards a New Global Financial Architecture: The G20 and the Future of International Economic Governance. Palgrave Macmillan.
- Dent, C. M. (2018). The G20. CQ Press.
- Ravenhill, J. (2019). Global Political Economy. Oxford University Press.
- Gordon, P., & Kerstenetzky, C. (2017). Governance and Finance at the End of History: The Rise of the G20. Springer.
- Schirm, S. A. (2019). The G20’s Role in Global Economic Governance. Springer.
- Narlikar, A. (2010). The G20: Perceptions and Reality. German Marshall Fund.
- Flammer, C., & Hoberg, G. (2016). Do the G20 countries care about the G20? Evidence from Google Trends data. Review of International Organizations, 11(4), 507-533.
- Matthews, D. (2015). The G20 and the governance of international finance: A study in the politics of recognition. Review of International Political Economy, 22(1), 7-35.
- Broome, A., & Seabrooke, L. (2017). Seeing like the G20: Governance technologies and hybrid financial governance. New Political Economy, 22(2), 193-209.
- Fuchs, D., & Klann, N. (2013). Paying a visit: The Dalai Lama effect on international trade. Journal of International Economics, 91(1), 164-177.