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Context:
- The 2025 G20 Summit in Johannesburg, South Africa, highlighted geopolitical divides, with the US, China, and Russia absent.
- South Africa pushed through a Leaders’ Declaration despite US objections, underlining the influence of middle powers and the Global South.
About G20 – Establishment and Evolution
Origin and Purpose:
- Established: 1999, after the Asian Financial Crisis (1997–98).
- Initial Format: Forum of Finance Ministers and Central Bank Governors to stabilize global finance.
- Upgrade: Post-2008 Global Financial Crisis, elevated to Leaders’ Summit to coordinate macroeconomic responses.
- From G8 to G20: Inclusion of emerging economies (China, India, Brazil, Saudi Arabia) created a de facto “economic security council”.
- Mandate Expansion: Over time, G20 covers finance, trade, climate, energy, health, food security, digital governance, and development.
- Platform for Emerging Powers: Provides a voice to countries like India, Brazil, and South Africa amid UNSC stagnation.
Presidency:
- Annual Rotational Presidency: Rotates among member countries, giving the host country agenda-setting power.
- 2025 Host: South Africa, emphasizing Africa-centric development and Global South priorities.
G20 Johannesburg 2025
- UNSC Reform: Calls for representation of Africa, Latin America, and Asia-Pacific, reflecting modern geopolitical realities.
- Climate & Finance Commitments: Scaling climate finance from billions to trillions, ensuring just transitions, and supporting vulnerable economies.
- Debt & Cost of Capital: Launch of a Cost of Capital Commission to address Global South debt burden (USD 1.8 trillion) and unfair borrowing costs.
- Social Targets:
- Nelson Mandela Bay Target: Reduce NEET youth share by 5% by 2030.
- Gender parity: 25% labour force participation by 2030.
- Critical Minerals Framework: Secures sustainable and diversified mineral value chains and local beneficiation.
- Mission 300 & Energy Access: Brings electricity to 300 million people in Sub-Saharan Africa by 2030.
Geopolitical Tensions
- Absence of Big Three: US, China, Russia absent → summit influenced by middle powers.
- US–South Africa Clash: US opposed climate and debt language, refused the declaration, accusing South Africa of “weaponising” presidency.
- Other Frictions:
- Argentina (Milei government) withdrew over Middle East conflict references.
- Europe focused on Ukraine, while Global South emphasized Gaza and humanitarian issues.