G-20-Part II

This is the second and concluding part of the article, first published on 21st May.

The previous article dealt with the origin and purpose of the formation of the G-20.   In this article, we shall examine the scope and extent of the mandate of the G-20, and how far it has been successful, in general,  in playing this role.

Mandate:  The G-20 is essentially, a informal forum for discussion, debate, and eventual resolution of issues relating to the global economy.   To bring about international co-operation, especially between the developed and the developing economies, takes up a lot of time and effort of the G-20.    A partnership between these two groups is not only ideal, but also essential for their  survival in this inter-dependent world.   The best evidence of this is perhaps, how the American economic crisis spread through a large part of the world, and caught other countries also in its trap.

The scope of the mandate of the G-20 can be guaged from the fact that, it’s member countries represent about two thirds of the world’s population.   Further the G-20 member countries represent nearly 80% of world trade and 90% of the global gross national product.   No doubt it enjoys considerable clout in matters related to the global economy and financial system.

Whether it is a matter relating to cross-border trade, or the management and the policies of international financial institutions, the G-20 plays an important and proactive role, to sort out the issues, to the satisfaction of all concerned.   The G-20 has institutionalized the process of resolution mechanism through dialog between the developed and developing world, for mutual benefit.

Achievements of the G-20:  The following are some of the major achievements of the G-20.

Promoting international co-operation:  This is a definite highlight in the achievement list of the G-20.   International co-operation in economic and financial matters sponsored and promoted by the G-20 is responsible for resolution of many a ticklish issue with global ramifications.

Promoting international fiscal standards:  The G-20 can claim responsibility for promoting international standards with regard to fiscal policies, the misuse of the financial system, etc.   It has brought about more transparency in the functioning of the international financial institutions, and made them more sensitive to the needs of the developing world.   International financial institutions are now more aware of the sensitivities of the developing world.

Fighting money laundering:  The G-20 has formulated specific standards against the practice of money laundering in association with other regulatory authorities.   It has come out with guidelines in regard to tax havens, that encourage money laundering.

Fighting financing of terrorism:  This is another area where the G-20 has made definite contributions.

These are some of the major achievements of the G-20.   In the coming years, it is expected to play an even more proactive role in global economic and financial matters.

                                                                                                                    Concluded.