Brazil began presiding over the G20 in December 2023, with a one-year presidency that will culminate in the annual summit in Rio de Janeiro in November 2024. The Brazilian government's priorities include reducing inequalities, promoting social inclusion and fighting hunger, energy transition and sustainable development, and reforming global governance institutions. The G20's multilateral dialogue takes place within the context of international institutions that do not reflect the changes in the world economy. The global South's weight in the G20 has increased, indicating a changing balance of forces within the group. The global South's share of global GDP has been rapidly increasing since the beginning of the 21st century, surpassing the global North. The Brazilian presidency of the G20 presents an opportunity to promote coordination among middle-income countries to pursue common agendas. The global South's increased importance in the G20 favors new global agendas. However, the increased weight of the global South in the G20 is not reflected in the functioning of the international monetary and financial systems. The US dollar remains dominant in international transactions, and the governance rules of multilateral financial institutions do not reflect the geopolitical and economic changes that have occurred since World War II. The Brazilian presidency of the G20 can address these asymmetries and advocate for debt relief or forgiveness for low-income countries, as well as push for reforms in the international monetary and financial systems. The global South's growing importance in the G20 is also reflected in demographic data, with the majority of the G20 population located in the global South. The Brazilian presidency of the G20 can play a historic role in reorganizing global governance by prioritizing the needs of the global South and promoting coordination between these countries. The Brazilian government can leverage the demands of the global South to press for a new structure of global governance that represents the economic and geopolitical transformations of recent decades.
Brazil is hosting its first G20 Foreign Ministers Meeting in Rio de Janeiro. The meeting, held in Brazil, focused on addressing conflicts and crises around the world, including the wars in Gaza and Ukraine. Brazilian President Luiz Inacio Lula da Silva, who took over the rotating presidency of the G20 in December, has called for international unity to resolve these conflicts. Representatives from the US, Russia, and China are attending the summit, highlighting its importance in the face of global tensions. The summit aims to push for reforms in key institutions such as the UN, World Bank, World Trade Organization, and the International Monetary Fund. The G20 Leaders Summit, which brings together the world's 20 largest economies, will be held in Rio de Janeiro in November.
The G20 foreign ministers meeting aimed to positively influence the international agenda and address pressing global issues. However, President Luiz Inacio Lula da Silva's recent comments accusing Israel of 'genocide' in Gaza may overshadow attempts to de-escalate the conflict. The meeting also discussed global governance reform, the fight against poverty, and climate change.
Secretary Blinken of the United States attended the G20 Foreign Ministers' Meeting in Rio de Janeiro. The United States supported Brazil's themes for the meeting, which focused on reducing geopolitical tensions and global governance reform. Secretary Blinken engaged with his counterparts from G20 members and invited partners, emphasizing the United States' commitment to reducing tensions, addressing food and health security, and supporting global governance reforms. The United States also expressed support for UN Security Council expansion and inclusion in multilateral institutions. Secretary Blinken highlighted the importance of building climate-smart, resilient food systems and improving global health. Additionally, the United States is working on advancing a Multilateral Development Bank (MDB) Evolution. Secretary Blinken also addressed the humanitarian crisis in Haiti and rallied support for the Multinational Security Support (MSS) mission.
The Brazilian presidency of the G20 aims to address global inequalities, promote social inclusion, and fight hunger. It also seeks to reform global governance institutions to reflect the changing balance of economic and geopolitical power. The G20's increased focus on the global South's priorities and agendas presents an opportunity for coordination among middle-income countries. However, the global South's growing importance in the G20 is not fully reflected in the functioning of international monetary and financial systems. The Brazilian presidency can advocate for reforms in these systems and push for debt relief for low-income countries. By prioritizing the needs of the global South and promoting coordination between these countries, Brazil can play a historic role in reorganizing global governance. The G20 Leaders Summit in Rio de Janeiro in November will be a key moment for these discussions and initiatives.
In a broader context, the G20, comprising 19 countries and the EU, has been addressing global economic issues for over 15 years since it became a leader-level meeting. Notably, China's contributions to multilateral development banks have increased significantly, from $0.1 billion to $2.2 billion. The E13 group, which includes BRICS and other emerging economies, has also ramped up its development finance contributions from $1.3 billion in 2010 to $6.3 billion in 2019. Institutions like the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) have emerged as significant players in multilateral finance. Digital transformation is becoming increasingly vital for economic cooperation, particularly in Asia, where disparities in digital access hinder growth. Collaborative efforts among CAREC and GMS countries are promoting digital economy cooperation, which is crucial for enhancing economic resilience and cooperation in the region. [08106542] [41aefc32]
