G20's New Delhi Declaration: Despite attaining consensus, it'll finally boil down to how the 34-page statement is implemented

The New Delhi declaration of the G20, a 34-page document with 112 outcomes, caught everyone by surprise. Not only did it come a day earlier than expected, but it also showed a consensus among G20 member nations despite concerns that the Russia-Ukraine war and climate-related issues could prove deal breakers.  

When the heads of state of the G20 member nations met in the national capital on September 9 and 10 for the Leaders’ Summit, no one had thought that the events would go as smoothly as they did—not just logistically, for it meant a partial shutdown of New Delhi, but also diplomatically. After all, there were concerns that the absence of Russian President Vladimir Putin and Chinese President Xi Jinping could mean that a wide-ranging consensus might prove elusive.

On Day 1, the summit started with the expected announcement: the inclusion of the African Union as a permanent member of the G20. It boosted India’s positioning as the voice of the Global South by ensuring that the 55-member bloc gets better representation on international issues.

The surprise came later in the day, when Prime Minister Narendra Modi announced that there was consensus on the New Delhi G20 Leaders’ Declaration during the second session of the summit.

But questions remained over the contents. However, a press conference that followed showed that it was a coup for India not only diplomatically but also in terms of taking forward its own agenda of strengthening multilateral development banks (MDB) and even a harmonised approach for regulating cryptocurrencies.

“There is no other leaders’ forum of this magnitude in the world that discusses issues of contemporary importance,” notes Rajat Kathuria, Dean, School of Humanities and Social Sciences, Shiv Nadar Institution of Eminence. He points out that the Summit indicates that there is an increasing willingness to collaborate on issues like the reforms of MDBs, greater appetite for climate finance, net zero, and the resilience of global value chains.  

India’s G20 Sherpa Amitabh Kant also highlighted that with 112 outcomes and presidency documents, India has more than tripled the substantive work from previous presidencies.

Ten of India’s agenda items for the finance track of the G20 were accepted. The Declaration said the G20 remains committed to pursuing ambitious efforts to evolve and strengthen MDBs. It also endorsed the G20 Roadmap for Implementing the Recommendations of the G20 Independent Review of MDBs’ Capital Adequacy Frameworks, which could yield additional financing of $200 billion over the next decade. The declaration also welcomed the IMF-FSB Synthesis Paper, including a “road map that will support a coordinated and comprehensive policy and regulatory framework.”

It endorsed efforts for swifter debt resolution in low- and middle-income countries through the common framework. Another achievement was the endorsement of the G20 Framework for Systems of Digital Public Infrastructure and the plan to build and maintain a Global Digital Public Infrastructure Repository, a virtual repository of DPI voluntarily shared by G20 members and beyond.

The G20 also reiterated its commitment to accelerate the full and effective implementation of the 2030 Agenda for Sustainable Development as well as to pursue low-GHG and low-carbon emissions, climate-resilient and environmentally sustainable development pathways by championing an integrated and inclusive approach.  

Important initiatives were unveiled during the high action weekend on the sidelines of the summit, including the Global Biofuels Alliance and the India-Middle East-Europe Economic Corridor (IMEC).

The IMEC, which will comprise two corridors—an Eastern Corridor connecting India to the Gulf region, and a Northern Corridor connecting the Gulf region to Europe—will include a railway and ship-rail transit network and road transport routes. Apart from India, its members include the US, Saudi Arabia, the UAE, European Union, Italy, France, and Germany. It is expected to counter China’s Belt and Road Initiative and also provide a new supply chain solution by cutting down transit time between India and Europe.  

European Commission President Ursula von der Leyen noted that it will make trade between India and Europe 40 per cent faster.

But this is just one side of the high-level Summit. The actual implementation of these decisions will come in the months and maybe even years ahead.

Govinda Rao, Emeritus Professor at the National Institute of Public Finance and Policy and Chief Economic Adviser at Brickwork Ratings, says the declaration was a huge diplomatic success for India and Modi. “The action has to start now on the statements. They have to evolve an enforcement mechanism, which is possible through a global organisation,” he says.

Former Finance Secretary Subhash Chandra Garg notes that the G20 Summit brings every international agency in the field of economics and finances and provides them an opportunity to update on what they are doing. “But the actual on ground implementation of these decisions is hard to gauge,” he contends.
Further discussions are expected at the meeting of the G20 finance ministers and central bank governors in Marrakech, Morocco, on the sidelines of the annual meetings of the World Bank and the IMF from October 9 to 15. Finance ministry officials say the meetings will take forward the proposed reforms of MDBs when the second volume of the report of the Independent Expert Group is submitted, as well as talks on a coordinated approach for regulating cryptocurrency.  

Similarly, the proposed IMEC is also a work in progress. “The concept will need detailing, and a lot more work needs to go into it. The corridor should be multidimensional, with not just road and rail connectivity but also highways and a common electricity grid that can capture solar power from country to country as the Earth rotates. It should also look at softer impediments to trade, such as customs procedures,” said Vinayak Chatterjee, founder and managing trustee at The Infravision Foundation and chairman of the CII Mission On Infra, Trade and Investment.

The Prime Minister has also proposed a virtual G20 session at the end of November, as India’s presidency draws to a close, so that the members can review the issues agreed upon during the Leaders’ Summit. These issues may see more discussion, and fine-tuning may follow.  
      
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