Achievements of the G20 Finance Track 2023 Under India’s Presidency: Global Economic Stability, Crypto Regulation
India’s successful presidency of the G20 in 2023 saw significant accomplishments in the Finance Track, emphasizing international cooperation and innovative solutions for a more secure and prosperous global economy. Key achievements included strengthening multilateral development banks, shaping global policies for crypto assets, addressing debt in lower and middle-income nations, supporting sustainable urban financing, and promoting sustainable finance.
The Indian presidency of the Group of 20 (G20) demonstrated a commitment to multilateralism and international cooperation. The G20 Leaders’ meeting at New Delhi, India, spanning September 9-10, marked the culmination of a year-long process and discussions among ministers, senior officials, and civil society on globally significant matters.
During its G20 presidency, India effectively delivered on its Finance Track objectives.
Key achievements include bolstering multilateral development banks (MDBs), shaping a global policy for crypto assets, addressing debt in lower and middle-income nations, supporting sustainable urban financing, etc.
Indian Finance Minister Nirmala Sitharaman emphasized people-centric, action-driven approaches and a commitment to leaving no one behind, while fostering consensus among G20 leaders.
What is the G20 Finance Track?
The G20 Finance Track plays a pivotal role in addressing critical global macroeconomic issues. Comprising Finance Ministers and Central Bank Governors, their Deputies, and various working groups, it works towards shaping policies to foster economic stability, sustainability, and resilience. Its achievements in the post-pandemic phase reflect a commitment to international cooperation and innovative solutions for a more secure and prosperous global economy.
Key issues addressed by the Finance Track
- Global economic outlook and risk monitoring: The Finance Track closely monitors the global economic outlook and identifies potential risks, providing essential insights for informed decision-making.
- Financial architecture reforms: Efforts are made to enhance the stability and resilience of the global financial architecture, ensuring a more robust framework for economic growth and stability.
- International taxation: Addressing the challenges arising from digitalization and ensuring fair international taxation through a two-pillar solution is a crucial aspect of the finance track’s agenda.
- Quality infrastructure financing: The Finance Track promotes principles for quality infrastructure investment, facilitating sustainable development and economic growth.
- Sustainable finance: Sustainable finance initiatives are actively pursued to integrate environmental, social, and governance (ESG) considerations into financial decision-making.
- Financial inclusion: Efforts are made to expand financial access and inclusion, ensuring that more individuals and communities can participate in the global economy.
- Financial sector reforms: The Finance Track advocates for necessary reforms in the financial sector to enhance stability and mitigate systemic risks.
- Pandemic preparedness and response financing: In the wake of the COVID-19 pandemic, the finance track has proposed innovative solutions such as the Financial Intermediary Fund (FIF) to support pandemic prevention, preparedness, and response.
Key Finance Track outcomes during India’s G20 presidency in 2023
- Strengthening multilateral development banks (MDBs): India secured agreements to enhance MDBs, making them more effective and capable of addressing global challenges. This includes boosting the financing capabilities of world banks and implementing recommendations for capital adequacy framework reforms for MDBs.
- Policy and regulatory framework for crypto assets: The Indian presidency laid the groundwork for a coordinated global policy and regulatory framework for crypto assets, garnering support for a clearer policy on crypto assets and a global consensus. The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have joined forces to provide comprehensive policy recommendations in response to the request from the Indian G20 presidency.
- Digital Public Infrastructure (DPI) for financial inclusion: India, through its India Stack, developed key DPIs, such as digital identity, real-time fast payments, and secure data sharing platforms. These were integrated into the G20 financial inclusion agenda, covering various aspects of DPIs and running between 2024-26.
- Debt resolution: The G20 reached a consensus on debt resolution for nations, both under the common framework and outside it, with discussions ongoing to address shortcomings in the debt restructuring process. This included finalizing debt vulnerability frameworks for Zambia, Ghana, Ethiopia, and soon, Sri Lanka.
- Financing cities of tomorrow: India worked on mobilizing resources and promoting sustainable, resilient, and inclusive urban development. Principles for urban infrastructure financing plans were established for MDBs and development financing institutions.
- Two-pillar taxation solutions: The G20 addressed taxation issues through two-pillar solutions, supporting timely resource mobilization for climate finance, scaling up sustainable finance for social sectors like health and education, and discussing global transition policies.
- Commitment to multilateralism: The Indian presidency demonstrated a commitment to multilateralism and international cooperation, offering a shared path forward for all G20 members.
- Sustainable finance for social sectors: Efforts were made to scale up sustainable finance for critical social sectors such as health and education.
- Global conversations on transition policies: The G20 engaged in discussions on transition policies, emphasizing the importance of balancing economic growth with environmental sustainability.
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