The unique opportunity for greater G20 inclusivity in the 2023-2025 period for developing countries should not be wasted. Membership of the African Union in the G20 will be important, but it will be insufficient in qualitatively addressing the issue of inclusiveness in global governance. Within the G20 there needs to be an “outreach platform” for the rest of the global economy, with individual small countries, regional organizations and integration groups having the possibility to contribute to the improvement in global governance.
While the macro-level governance platforms within the G20 may harbor significant potential, there may also be a need to look at the micro-level platforms that target sectoral cooperation as well as greater economic efficiency among enterprises. One such proposal already entertained by India for its G20 chairmanship is the creation of a Start-Up 20 – a platform to facilitate the creation of start-ups across the global economy. This could be a great venue for replicating best international practice among the G20 economies as well as their regional partners.
With the IMF warning about the rising risks of recession perhaps the most important economic issue to discuss at the G20 summit will be the coordination of an anti-crisis response across the global economy. The process of such coordination is arguably improving with each global crisis – most recently during the 2020 downturn the G20 provided for a more effective use of the Global Financial Safety Net via the greater employment of the resources of the multilateral development banks in the overall G20 anti-crisis package.
Within the new round of a coordinated anti-crisis response there may be further scope to make use of the resources accumulated in the regional development institutions. Prior coordination of priority areas of investment among these development agencies (both national and regional) could deliver a more targeted response to the global slowdown. At the same time, regional integration organizations/arrangements could also provide their anti-crisis contribution via refraining from protectionist measures and coordinating liberalization initiatives with the WTO. The developing countries in the coming years could make a lasting and crucial contribution to making the G20 a more effective and inclusive global anti-crisis mechanism.