Tag Archives: G20 Summit

G20 Collaborative Actions: With or Without the US

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The common refrain by those examining the multilateral  institutions and organizations seeking greater collaboration at the global level are: ‘legitimacy’ and ‘effectiveness’. Now the fact is these characteristics apply to the national and subnational levels as well, but they are a consistent refrain at the international level, especially in light of the geopolitical tensions in the international system. 

A number of my colleagues have recently focused on what I consider the key global informal governance institution, the G20. These colleagues focus on both critical characteristics with somewhat different views. First there is Danny Bradlow and Robert Wade. Danny Bradlow is a Senior Research Fellow, Centre for Advancement of Scholarship, University of Pretoria and Senior G20 Advisor to South African Institute of International Affairs. Robert H. Wade, is co-author on this piece, and is a Professor of Global Political Economy, London School of Economics. Both have participated in various CWD events. In a piece in Global Policy entitled, “How to Fix the Representation Problem of the G20” the co-authors described briefly the G20. Some of that is worth repeating: 

“The G20 is an informal gathering, which claims to be “the premier forum for international economic cooperation”. It was established at finance minister’s level in the wake of the East Asian financial crisis of the late 1990s, and upgraded to summit level, with the same membership,  in the wake of the global financial crisis of 2008-2009. The summit is held annually, under the leadership of a rotating presidency.”

 

“The membership comprises 19 of the “weightiest” national economies plus the European Union and the African Union. The 19 national economies include  the G7 (US, Japan, Germany, UK, France, Italy, Canada), Australia, plus China, India,  Indonesia, Republic of Korea,  Russia, Turkey, Saudi Arabia, South Africa, Mexico, Brazil, Argentina.   The group, which includes about 10% of the states in the world, accounts for 67% of the world’s population, 85% of global GDP, and 75% of global trade.” 

 

It is in size and the weight of membership the most formidable of what I call the Informals which includes at least  the G7, the BRICS+ and the G20. When it then comes to an evaluation of this key Informal the authors suggest: 

“The G20 has had a mixed record.  It has an intense work programme  focused on addressing many of the most significant international economic, financial, environmental and social challenges. The consistency in G20 membership has proven to be an advantage because it helps foster a sense of familiarity and understanding at the technical level among the permanent members, which is helpful in times of crisis and in dealing with complex problems.”

 

“But its exclusivity and informal status has limited its ability to address these challenges. This is particularly  because in many cases an effective response requires agreement and action by all states.” 

 

“Over time, as tensions in international relations have grown, the shortcomings in the structure of the G20 have become more evident. Despite its economic weight, the G20 has a basic legitimacy problem.  It is a self-selected group whose members, except for the African Union and the European Union, represent only themselves. 

What these authors then suggest, in light of their view that legitimacy is lacking is to adopt a model being used, in this case, at the Financial Stability Board, the FSB: 

“It has established six Regional Consultative Groups (RCGs), one each for the Americas, Asia, Commonwealth of Independent States, Europe, Middle East and North Africa, and Sub-Saharan region. The objective is to expand and formalize the FSB’s outreach activities beyond the G20 membership and better reflect the global character of the financial system.”

They conclude their examination with this perspective: 

“Applying the FSB model to the G20 would allow the current members of the G20 membership to continue, while obliging them to establish a consultation process with regional neighbours, thereby creating a limited form of representation for all the world’s states. It would also establish a limited form of G20 accountability towards the international community.”

It is evident that these authors believe the problem for the G20 is a lack of wide representation and apparently the need to enlarge G20 representation. Yet it is somewhat surprising that these two colleagues target representation. I’ve always been of the view that you go with the members you have and seek to move ‘the policy dials’. Whether it is multilateral or minilateral or plurilateral, in an ideal world we would probably enlarge representation but we have learned all too unhappily that universal representation is not necessarily a solution to effective policy action. 

Two other colleagues seem less inclined to see representation as the most serious impediment to advancing G20 policymaking. Indeed these co-authors underscore the critical value of the G20. So, my CWD colleague and lead co-leader, Colin Bradfrord, a Nonresident Senior Fellow of the Global Economy and Development Program at Brookings and his colleague, Brahima Sangafowa Coulibaly who is vice president and director of the Global Economy and Development program at Brookings have joined together to examine the G20 role in, “Strengthening Cooperation for a Changing World:  The Evolving Role of the G20 in Global Economic Governance”, a special brief for Brookings and in fact Brookings held a session with a number of esteemed panelists in Washington at the margins of the ‘Spring Meetings’ to examine the G20. As they argue in their Executive Summary:

“While there are areas for improvement, a review of the G20’s evolution highlights a remarkable transformation. From an ad hoc response to the GFC [GlobalFinancial Crisis], it has evolved into a central pillar of international cooperation—shaping global trajectories across finance, economics, technology, health, climate, and society. After 18 years of experience, involving tens of thousands of politicians, policymakers, and societal leaders throughout each year, the G20 has demonstrated that it is indeed “fit for purpose” at this crucial moment of competing perspectives on the global future.

 

“Indeed, the world is undergoing one of the most profound transformations in global economic relations and facing the greatest test of international governance since World War II. In this context, the G20 has proven to be an indispensable platform—not only through its annual leaders’ summits but also through its multilayered, yearlong process involving ministers, sherpas, senior officials, and civil society leaders across a wide range of sectors. Its ability to convene nations with vastly different cultures, interests, and perspectives—and to keep them at the table despite tensions, rivalries, or even war—is one of its greatest strengths. The G20 serves as a vital arena where global governance plays out in real time amid deep uncertainty and geopolitical strain.”

Are matters perfect, of course not. And the authors are alert to point to the limitations: 

“Despite its past success, there is room to enhance the G20’s effectiveness and impact. Key areas for improvement include strengthening personal dynamics among leaders; enhancing continuity and sustained engagement; improving public communication and domestic outreach; and restoring public confidence in leadership and markets. To bolster its credibility, the G20 should also revisit practices from its most effective years—particularly the use of action-oriented communiqués with clear timelines.”

Critically on the plus side the G20 has a significant element of inclusiveness – at least politically. Not only do you have all the members of the G7 but you also have all the original BRICS members, Brazil, Russia, India, China and South Africa. Critical in my mind, and it seems to be as well for the co-authors, the G20 includes many key actors from the Global South:

“Third, around the same time, the rise of large, dynamic emerging market economies (EMEs) dramatically altered the global economic landscape, reducing the long-standing dominance of the West—namely the United States and Europe—and ushering in a more pluralistic world. This shift integrated key non-Western powers, such as China and Russia along with influential voices from the Global South, into global economic decisionmaking, injecting realism along with tensions into the global governance system.”

In addition, and to aid continuity from year-to-year for the G20 in the face of  passing of the presidency to the next G20 member, the co-authors point to the Troika: 

“Each annual summit marks a formal transition between presidencies, but continuity is ensured through a “troika” system, comprising the past, current, and incoming hosts. At the outset of a presidency, the host country announces its priorities, which are then integrated with ongoing legacy issues. Together, these form the foundation of the annual work plan, which is refined during the first sherpa and deputies’ meetings— typically held in December and January—and officially endorsed at the first finance ministers’ meeting. This process sets the structure for and establishes working groups and ministerial responsibilities.” 

Is it perfect, no. Indeed in the recommendations section the co-authors suggest adding more members to enhance continuity. But the co-authors pay attention to the structure, what I’ve referred to as the ‘Iceberg Theory’ of the G20. The Iceberg is the significant structure of political and administrative actors carrying on the year to year work, maintaining a critical element of continuity,  to move policy actions forward: 

“This expansive framework highlights the G20’s evolution into a dynamic platform for global governance with broad consultations that extend well beyond its core membership. G20 summits are not simply a two-day gathering of world leaders; they are the culmination of a yearlong process involving a wide array of ministerial meetings, working groups, and civil society dialogues aimed at steering the global economy and addressing 21st century challenges.[In fact the significant structure of Ministerials, Working Groups and Task Forces can be reviewed here at the Global Summitry Project (GSP) website].  

Is it  enough? Well, here you have to be a bit cautious. Overall, the representation and structure of today’s G20 seems adequate but with respect to ‘effectiveness’ – collective concerted collaboration – there is still a distance to go. Very much so. The co-authors in fact also urge the following: 

  • “Strengthen personal dynamics among leaders
  •  Enhance continuity and sustain engagement
  • Improve public communication and domestic engagement
  • Restore public confidence in leadership and markets”

All of that would be useful but collective determined policymaking – advancing action on climate change and climate financing, debt management and relief, global development and many more subjects – remain seemingly unreachable at the moment. 

And now, with the completion of the South Africa year we come to the end of the first cycle of G20 countries. That means that the United States is scheduled to return to hosting in 2026. The Trump administration’s distaste for multilateral actions including debt support, climate change, global development are all too evident. While there was talk in fact of the Trump administration deciding not to take up leadership for 2026, that may not be what the Trump administration is deciding to do at the moment. I wonder which is better however: with, or without, the US? I’m not sure. Some see the Summit collapsing without US involvement. But US hosting, with a Trump administration, may collapse forward movement in key global governance policies. There is at the moment no definitive answer. But there will be more to come on this.  

Credit Image: Bahrain

This Post originally appeared asa Substack Post at Alan’s Newsletter: https://globalsummitryproject.substack.com/p/g20-collaborative-actions-with-or

Informal global leadership can help steady the ship – from EAF November 26, 2024

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Happy Thanksgiving Weekend – Enjoy!

This piece forst appeared at EAF – https://eastasiaforum.org/2024/11/26/informal-global-leadership-can-help-steady-the-ship/

“All evidence suggested that Brazil’s G20 Summit was going to bean exceptionally difficult summit for the United States and its departing President Joe Biden — and it proved to be so with the USPresident appearing as all too evidently a ‘lame duck’ and the shadow of Biden’s successor, Donald Trump, all too evident in leaders’ discussions.

It has been a busy period for the informal international forums(‘Informals’). The Asia-Pacific Economic Cooperation (APEC) met inPeru on 15–16 November, followed immediately by the G20Leaders’ Summit in Brazil on 18–19 November. If these two summits were not enough, the BRICS+ Summit ran in Kazan,Russia on 22–24 October and the East Asia Summit also met inOctober. Leaders and their ministers have had significant opportunities to engage with other heads of government and state.

The question is whether these summits advanced globalgovernance policies or handled the current international context rifewith geopolitical tensions built on the back of conflicts in the Middle East and in Europe, US–China strategic competition and the growing populist and illiberal governments challenging the liberal order? The influence of Informals — especially the G20 but tovarying degrees the G7, BRICS, APEC and the many minilaterals such as the US–Japan–South Korea and China–Japan–South Korea trilateral frameworks — may grow in the increasingly fragmented global order.

The role of Informals has evolved before. Following the eruption of the 2008 Global Financial Crisis, there was discussion among experts about whether the just created G20 Leaders’ Summit was a‘crisis committee’ or a ‘steering committee’. In either case, it was presumed to be a capable of generating collective efforts of these key countries. There was strong approval of the G20 efforts to tackle the financial crisis and most observers would agree that their collective efforts aided at the time in getting past the financial crisis.

There was a tendency, naturally, to hone in on the collective G20 leaders’ efforts in the years that followed. The G20 announced efforts to coordinate among its 19 countries and the European Union — and now the African Union — with statements of implementation and agreed coordinated efforts expressed in verylengthy leaders’ communiques or declarations. Yet there was limited implementation by national governments and the international organisations.

The hope was then that the annual gatherings of G20 leaders would allow leaders to finalise collective efforts to make globalisation work for all and to provide a setting where advances could be secured for critical global issues like institutional financial reform, debt management and climate financing. These meetings also sought to achieve collective agreement to press forward on theSustainable Development Goals unanimously approved at the United Nations in 2015. But little of any of this was concluded.

The annual leaders gatherings, especially the G20, have provided at least valuable opportunities for leaders to reach beyond the collective gathering and arrange highly helpful bilateral meetings.For example, the 2023 APEC Summit in San Francisco enabled Chinese President Xi Jinping and US President Joe Biden to meet on the margins. This bilateral meeting is widely recognised as stabilising US–China relations and reopening various lines of communication, including military-to-military communication that had been suspended following the visit to Taiwan by then speakerof the House of Representatives Nancy Pelosi.

At the 2024 Peru APEC Summit, the two leaders met again. In thefading days of his presidency, Biden hoped to advance US–China relations. While the leaders were able to publicly express the hope for further cooperation, and there was agreement to maintain human control over nuclear weapons, the shadow of incumbent US president Donald Trump’s return clearly cooled the opportunities for further advancing efforts and left Xi warning over Taiwanese independence and other ‘red lines’.

Besides serving as the setting for leaders of the two leading powers to talk, the Peru APEC meeting also provided the setting for other leaders to hold critical meetings. One clear instance was Japanese Prime Minister Shigeru Ishiba and South Korean President YoonSuk-yeol. The two leaders held their second meeting in just over a month and enabled the two leaders to discuss the threat posed by recent North Korean efforts. They also pledged to continue ‘shuttle diplomacy’. Given the fraught relations between the two countries the meetings proved quite valuable.

The annual informals have created it seems numerous instances of leaders ‘huddling’ together, which has aided diplomacy. These diplomatic instances should not be underestimated, with the G20 representing two-thirds of the world’s global population and 85 percent of global GDP. Further, the G20 gathering in Brazil will have created space for various leader discussions on the eve of Trump’s return. Future gatherings at these summits may prove to be evenmore critical as opportunities to collaborate on trade, finance or climate in the face of Trumpian chaos will be difficult to come by otherwise.

While the Informals’ value for the global order it seems is largely inthe opportunity for leaders to connect and make diplomatic and security progress, the collective efforts of these gatherings cannot be completely dismissed. They may not support collective policy implementation as was once hoped but these summits do enable leaders — often the host country leaders — to amplify critical policy initiatives.

This has proven the case for the Brazil G20 Summit whereBrazilian President Luiz Inacio Lula da Silva used his G20 presidency to highlight the need for a global wealth tax on billionaires in a larger effort to support middle- and low-income countries. And the Declaration did at least create the Global Alliance against Hunger and Poverty. The Alliance is an initiative of Brazil that aims to create instruments to combat hunger and inequality at a global level. The Brazilian wealth tax on billionaires proposal could have raised hundreds of billions of dollars but such a commitment failed to make the Rio de Janeiro Declaration.Nevertheless, the collective expression in the Declaration and the Alliance that was created did hopefully provide a marker for the future.

The way Informals bring leaders together and foster collective diplomatic action will be increasingly important for upholding therules-based order, protecting international peace and spurring policy progress in an increasingly fragmented global order —especially with Trump’s return on the horizon.

Alan Alexandroff is Director of the Global Summitry Project and Co-Chair of the China-West Dialogue (CWD). When he teaches, he does so at the Munk School of Global Affairs and Public Policy at the University of Toronto.

 

Image Credit – G20

 

Indonesia’s G20 Win: behind-the-scenes gatherings and unity in a time when global governance needs it most – and now to India

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Dominating our smartphone screens, televisions, and front pages were photos of Justin Trudeau, Xi Jinping, Joe Biden, and Giorgia Meloni in traditional Indonesian attire, participating in a ceremonial mangrove tree planting event and gathering late night to discuss the missiles that killed two Poles, contemplating potential next steps using NATO’s Article 4. These leaders are – whether they want to be or not – celebrities. They are simultaneously praised and critiqued depending on who is watching them. Yet, what is not seen by mainstream audiences, perhaps even those more politically astute, is the intricate machine of behind-the-scenes work taking place throughout 257 meetings between December 2021 and December 2022 under Indonesia’s presidency of the G20 Summit.

In 2011, the Director of the Global Summitry Project, Alan Alexandroff, wrote about the notion of the G20 not being solely about its leaders, but rather surrounding the Leaders’ Summit an array of complementary “personal representatives, ministers, other officials, IFIs, IOs, [and] global regulators that make the G[20] system work – or not”. Whether the G20 is successful (a subjective term, in any case), is a different conversation.

Alexandroff’s Iceberg Theory of Global Governance positions the G20 Leaders’ Summit at its tip, but the vast bulk of the iceberg is situated below the surface, and often goes unnoticed by the majority of observers and experts.

This underwater all-encompassing mass is formed by numerous assemblies: from Ministerial meetings regarding health, environment and climate, women’s empowerment, trade investment and industry, the energy transition, development, labor, research and innovation, and tourism; to Finance Ministers and Central Bank Governor meetings, Finance-Health Deputies meetings, joint Sherpa and Finance Deputies meetings, individual Sherpa meetings, Foreign Ministers meetings, G20 Digital Ministers meetings, and Education Ministers meetings; and lastly, engagement group gatherings (including the U20, B20 on climate/energy, integrity, compliance, and business leaders; the T20, with numerous recommendations from think tanks around the world, the Y20, with priority areas on digital transformation and youth empowerment, and the L20 Employment Summit).

It would be hard to contest that the G20 indeed has been a platform that has developed and advanced key collaborative actions toward policies and priorities, from the Leader Declaration identifying the Pandemic Fund, the Financial Intermediary Funds for Pandemic Prevention, which employs the World Bank and World Health Organization.

The incoming G20 Troika – Indonesia, India and Brazil – will mark a unique shift in global governance deliberations. It will be led by three Global South countries with emerging large market economies hosting the year-long activities. The hosting will pass from India in 2023, Brazil in 2024, and South Africa in 2025.

We anticipate this three-year spread of Global South presidencies will tackle issues that have been brushed to the side or missed in other G20 Summits. This is certainly a significant step in the effort to construct a multilateral network to seek mutually beneficial responses to growing challenges impacting all countries.

The Financial Times released an article following Indonesia’s Leaders’ Summit, deeming its outcomes “remarkable”. Russia, represented by its Minister of Foreign Affairs, Sergei Lavrov, seemed isolated on the world stage as China put forth a more neutral stance in its support towards Moscow. Xi commented that his administration “resolutely opposes attempt[s] to politicize food and energy issues or use them as tools and weapons”.

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Scepticism Again Abounded Prior to the Opening of a G20 Leaders’ Summit – But Then …

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Alan Beattie, veteran G20 watcher from the Financial Times, has regaled us once again with reasons to dismiss G20 summits before they begin.  On November 14th,  a day before the Indonesian G20 summit begins in Bali, we are treated to the conclusion by him that the G20 is a “gabfest” and  that “it is what it always has been, which is largely pointless”! 

To prove his point,  Alan Beattie links us to his March 13, 2009, article , published a month before the London G20 summit, which was arguably the most important economic summit ever. Entitled “the gap of twenty”, he wrote back then rather definitively that “there should be little doubt…that the divisions seen on display have already dissipated the G20’s ability to spread confidence”.

The Indonesian G20 Summit has in fact demonstrated that without the G20 there would be no global leadership platform which could bring together a finite number of major actors in global affairs from an eclectic array of regions and regime types to address the war in Ukraine, US-China relations, and global systemic challenges. 

What Alan Beattie gets wrong in both 2009 and now more recently just prior to the Bali Summit is to fail to see that “domestic  constituencies “do indeed drive the “domestic calculus”.  The dynamics of global summitry are intended to push the frontiers of public discourses in order to mainstream ambition as good governance rather than to be an exercise in fancy pants diplomacy.  The term “gabfest” trivializes the efforts by global leaders and their officials, advisers and experts to provide societies with the vocabulary for understanding global risks and with vision for global solutions.   

What has gone on all year before the Leaders’ Bali gathering is the tedious developments of policy proposals that will work and the quest for pushing  feasibility frontiers to the maximum that domestic  and financial constraints will bear.   

The  G20 process is essential for global survival and for guiding global systems toward sustainability instead of disaster. The Indonesian Summit has underlined this critical point.

Image Credit: SMA Negeri 1 Singaraja

By Guest Blogger Colin Bradford who is lead-co-chair of the China-West Dialogue (CWD), co-chair of the Vision20, global fellow of the Berlin Global Solutions Initiative (GSI), and non-resident senior fellow of the Brookings Institution.