G20: Efforts to Inclusive and Sustainable Recovery Solutions
The Story of G20
In 1975, the heads of state and government of the six leading industrial countries, consisting of France, Germany, Italy, Japan, the United Kingdom and the United States of America, met for the first time to discuss the global economy. They were joined in 1976 by Canada, thus forming the Group of Seven (G7). Then in 1998, Russia joined so that the G7 became the G8.
Later in 1999, the G20 was formed and was originally a meeting of the Minister of Finance and the Governor of the Central Bank in an effort to broaden the discussion of policies that are beneficial for resolving the global economic and financial crisis. G20 consists of 19 countries and European Union (EU). In 2009, the G20 was designated as a replacement for the G8 and developed into a head of state level, where member countries are represented by heads of state, ministers and central bank governors.
G20 Summit is held each year and in addition to that, there are also ministerial meetings, sherpa meetings, working groups meetings, engagement groups meetings and other events are organised throughout the year. The G20 is a group of 20 countries that represent 85% of the world economy. Unlike the G8 and G7 which are exclusively made up of developed countries, the G20 is made up of developing countries. Indonesia is one of its members.
Recover Together, Recover Stronger
The Indonesia's G20 Presidency took place in Bali on 15-16 November 2022. The theme carried by Indonesia, "Recover Together, Recover Stronger", had a profound meaning about the importance of recovering together, both in terms of economic growth and development. The principle of inclusiveness and leaving no one behind in the sustainable development agenda was echoed in such a way in various G20 meetings.
Watch the highlight of Indonesia's G20 Presidency below.
Bali Leaders' Declaration: The Success of Indonesia's G20 Presidency
The G20 Bali Summit succeeded in ratifying the Leaders' Declaration. The 2022 Bali Leaders Declaration contains 52 statement points as well as various communiqués and documents resulting from the discussion of the entire G20 engagement group. The 2022 Bali Leaders' Declaration highlights the "unparalleled multidimensional crises" such as the COVID-19 pandemic and climate change, which have hindered the achievement of the SDGs.
At today's critical moment for the global economy, it is essential that the G20 undertakes tangible, precise, swift and necessary actions, using all available policy tools, to address common challenges, including through international macro policy cooperation and concrete collaborations.
The Declaration states that members remain committed to support developing countries, especially in the most vulnerable countries. Guided by the Bali Compact and the Bali Energy Transition Roadmap, members are committed to finding solutions to achieve energy markets stability, transparency, and affordability. On climate, they further reaffirm their commitment to strengthening "the full and effective implementation" of the Paris Agreement on climate change and its temperature goal. On biodiversity, members commit to strengthen actions to halt and reverse biodiversity loss, including through nature-based solutions and ecosystem-based approaches. They are also in support of the G20's ambition to reduce land degradation by 50% by 2040 on a voluntary basis.
Read G20 Bali Leaders' Declaration here.
We spoke with Prof. Bambang Brodjonegoro, the lead co-chair of T20, one of the engagement groups in G20. He is an Indonesian economist and a former Indonesian Minister of Research and Technology under President Joko Widodo in 2019 until 2021.
T20: The Ideas Bank of G20
The Think20 (T20) is the official engagement group of G20 bringing together leading think tanks and research centers worldwide. T20 aims to provide research-based policy recommendations to the G20 leaders. Among many G20 engagement groups, T20 brings together think tank groups and research centers from G20 member countries.
There are three main priorities for this year's G20 consisting of (1) pandemic fund, (2) digital transformation, (3) energy transition. The classification for 8 taskforce related with these three main priorities. The host for Indonesia's T20 are LPEM FEB Universitas Indonesia and Centre for Strategic and International Studies (CSIS).
"The biggest challenge for us (T20) is the time when we have to brought up our messages to decision maker in G20," he said.
He also added that in terms of financing, the most important invention that can be implemented from G20 is uplanded finance, because it mixes various financial sources (private, concessional, government subsidies, and social funds).
Water Issues: Is it Included in the G20 focus?
Bambang Brodjonegoro, the lead co-chair of T20 said that in T20 itself, the task force that mainly focusing on infrastructure, water is not the main focus.
"We emphasize the infrastructure that is built to have resilience, relatively sustainable. Clean water still have less attention as the element of infrastructure in Indonesia, even though Indonesia is struggling to reduce stunting. Because in reducing stunting, clean water and sanitation play an important role. Water is important, therefore water should be considered to be the main focus in any engagement group in G20," he said. He said perhaps the water issues can be brought in next year's G20 Summit. He also added that the private sector plays an important role in developing clean water.
Bambang Brodjonegoro highlight that the next G20 Presidency in India would be focused on people and planet, also the connection into sustainability, digital transformation, and volatility in macro-economic post-pandemic. It was announced that the official theme of India's G20 Presidency – "Vasudhaiva Kutumbakam" or "One Earth One Family One Future" - is drawn from the ancient Sanskrit text of the Maha Upanishad. Essentially, the theme affirms the value of all life – human, animal, plant, and microorganisms – and their interconnectedness on the planet Earth and in the wider universe.