Leaders from the world’s largest economies are gathering in Brazil for the G20 summit that kicked off on Monday.
Chinese President Xi Jinping and United Kingdom Prime Minister Keir Starmer are some of the prominent world leaders expected to attend. Russian President Vladimir Putin will not be attending the gathering in Rio de Janeiro.
As countries debate global policy strategies, they will have to take into account challenges such as an incoming Donald Trump administration in the United States, Israel’s war on Gaza and the war in Ukraine.
Here is all to know about the event:
What is the G20 summit?
The Group of 20 (G20) is a bloc of 19 of the world’s largest economies and the European Union. The African Union also joined in 2023.
The member countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkiye, the UK and US. Spain is part of the G20 as a permanent guest.
The G20 was formed in 1999 in the wake of multiple economic crises, including the 1997 Asian financial crisis. It was formed to discuss policy matters. Since its inception, the group has met every year for an annual summit. In 2023, India hosted the summit while the 2022 summit was held in Indonesia.
When and where is the summit?
The summit will take place on Monday and Tuesday in Brazil’s coastal city of Rio de Janeiro.
Who is attending?
Leaders from the 19 member countries, the EU and African Union are attending the summit.
Outgoing US President Joe Biden will be making his final appearance before leaving office on January 20.
Indian Prime Minister Narendra Modi and China’s Xi Jinping arrived in Rio de Janeiro on Monday to attend the summit, according to media reports.
Turkish President Recep Tayyip Erdogan arrived in Brazil on Sunday afternoon, and had a meeting with Brazil’s leftist president, Luiz Inacio Lula da Silva.
For Mexican President Gloria Sheinbaum, this will be her first international summit since taking office in October. Sheinbaum is pushing for initiatives to cut arms spending and boost food self-sufficiency.
On October 18, Putin said he would not attend because his presence would “wreck” the summit with “conversations” likely to revolve around an International Criminal Court (ICC) arrest warrant against him over alleged war crimes in Ukraine. His announcement came after Ukraine urged ICC member Brazil to arrest Putin if he travelled there for the summit, a threat Putin dismissed.
What is on the G20 agenda this year?
Besides broad discussions over macroeconomic developments, experts anticipated that this year’s summit would focus on the eradication of hunger, which is a priority for Brazil, The Associated Press news agency reported.
Brazil is looking to launch a Global Alliance Against Hunger, with social programmes and funding mechanisms aimed at addressing global food shortages and supplies.
Starmer will have a meeting with Xi on the sidelines of the summit, according to a statement released by his office on Sunday.
Relations between London and Beijing have become strained over the past decade due to British concerns over national security risks from Chinese investments and China’s growing military and economic assertiveness.
However, Starmer now appears to be focused on strengthening trade ties to boost the UK economy amid added complexities stemming from potential US tariffs under President-elect Trump and post-Brexit adjustments.
Discussions are also expected to be complicated by Washington’s sharp policy shifts under Trump, who will assume office in nine weeks. Trump’s stance on increasing tariffs and phasing out US support for the Ukraine war is likely to challenge international agreements on these issues.
China’s agenda will likely focus on its Belt and Road Initiative, a global infrastructure project that is central to its economic strategy. However, Beijing’s relations with Brazil have been strained after the latter opted not to join the initiative. Despite this, industrial collaborations may still be on the horizon, particularly with Xi scheduled for a state visit to Brasilia.
China, which has forged close economic ties with Russia, has called for diplomatic talks to end the war in Ukraine. This is in line with Trump’s call for talks to end the war.
Why does the G20 matter?
The G20 member states are responsible for 85 percent of global economic output, according to World Bank data.
The group’s importance lies in its broad representation, unlike the Group of Seven (G7), which is limited to wealthier nations. Although the recent inclusion of the African Union in the G20 has facilitated this broader representation, reaching a consensus among such a diverse group has proven difficult.
Experts also said the G20’s ability to drive coordinated action has weakened in recent years, especially during the COVID-19 pandemic when there was a more fragmented response.
One of its major successes before that was in managing the 2008 financial crisis by agreeing on $4 trillion in stimulus measures, rejecting trade barriers and enacting reforms of financial systems.
Additionally, bilateral meetings on the summit’s sidelines have occasionally led to major international agreements.
At the 2023 summit, the India-Middle East-Europe Economic Corridor was launched, a rail and port network connecting India to Europe through the Middle East. This initiative is seen by some as a significant challenge to China’s Belt and Road Initiative.
