Consider the following statements about G-20. Which of the statements given above is/are correct?

UPSC Prelims 2023 Question:

Q . Consider the following statements about G-20:

1. The G-20 group was originally established as platform for the Finance Ministers and Central Bank Governors to discuss the international economic and financial issues.
2. Digital public infrastructure is one of India’s G-20 priorities.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct Answer: Option c) Both 1 and 2

Learn more about G20 in the given explanation below.

Explanation:

• The G20 group of 19 countries and the EU was established in 1999 as a platform for Finance Ministers and Central Bank Governors to discuss international economic and financial issues. Together, the G20 countries account for almost two-thirds of the global population, 75% of global trade, and 85% of the world's GDP. So, statement 1 is correct.
• India is pitching its digital infrastructure at G20 as an open-access platform that can aid in improving development outcomes. So, statement 2 is correct.

Structure and Functioning of G20

The G20 operates on the basis of annual meetings of Finance Ministers and Central Bank Governors, with a leaders' summit held once a year. The G20 consists of two parallel tracks called the Finance Track and the Sherpa Track. These two tracks play an active role in shaping ideas and priorities for the host presidency while also guiding the intergovernmental negotiations carried out throughout the presidency. They prepare and follow up on the issues and commitments adopted at the Summits.

Structure of G20 Summit
Sherpa Track	- The Sherpas of member countries are the personal emissaries of the Leaders. - They concentrate on socio-economic issues such as agriculture, anti-corruption, climate, digital economy, education, employment, energy, environment, health, tourism, trade and investment. - They oversee all the negotiations over the year, discuss the agenda for the Summit and coordinate the substantive work of G20.
Finance Track	- It is headed by the Finance Ministers and Central Bank Governors, who generally meet four times a year, with two meetings being held on the sidelines of World Bank /International Monetary Fund meetings. - Focus areas: Fiscal and Monetary policy issues such as global economy, infrastructure, financial regulation, financial inclusion, international financial architecture, and international taxation.

• Troika: The G20 does not have a charter or a secretariat. The Presidency is supported by the Troika, which includes the previous, current, and incoming presidencies. The G20 Presidency hosts the Summit and directs the agenda for a calendar year.
• A non-binding forum: Its decisions are not legally binding, and member countries are not required to implement them.
• Working with international organisations: The G20 members also work closely with international organisations such as the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO).

Therefore, option (c) is the correct answer.

Subject: Polity | International Relations

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