The recently concluded G20 Summit in New Delhi marked a significant moment for global diplomacy and cooperation. Under the leadership of Prime Minister Narendra Modi, G20 members unanimously adopted the ‘Delhi Declaration’, highlighting major achievements under the finance track during India’s presidency of the group.
Navigating Geo-Political Challenges
India assumed the G20 presidency at a challenging time of geo-political tension. However, the focus remained on ensuring that divergences didn’t overshadow developmental concerns of the global economy.
Strengthening Multilateral Development Banks (MDBs)
The summit witnessed an agreement among G20 members on the need for better, bigger, and more effective Multilateral Development Banks (MDBs). Recommendations were put forward by the G20 Independent expert group, emphasizing a triple agenda for enhancing MDBs. Member countries also pledged to collaborate with the World Bank to bolster the global economy.
Capital Adequacy Framework (CAF)
An independent panel on the Capital Adequacy Framework (CAF) recommended supporting reforms of MDBs. The roadmap estimates that implementation of CAF will yield additional lending of $200 billion over the next decade.
Progress on Crypto Assets
A global consensus emerged on the regulation of crypto assets. The ‘Delhi Declaration’ affirmed support for the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in their efforts to establish a regulatory framework for crypto assets.
Global Taxation
Significant progress was made on two-pillar solutions for global taxation. The ‘Delhi Declaration’ stated that G20 members remained committed to the swift implementation of the two-pillar international tax package.
Addressing Debt Vulnerabilities
Efforts were made to address debt vulnerabilities in developing countries, successfully assisting the debt situation of Zambia, Ghana, Ethiopia, and Sri Lanka.
Mobilizing Resources for Climate Finance
An agreement was reached to support the mobilization of resources on climate finance. The Indian Presidency adopted an action-oriented approach to support timely mobilization of resources for climate finance.
In conclusion, the G20 Summit, under India’s presidency, achieved significant milestones, ranging from strengthening MDBs to advancing global taxation and addressing debt vulnerabilities. The ‘Delhi Declaration’ reflects the commitment of G20 countries to tackle pressing global issues collectively, despite the challenges posed by geo-political tensions.
