Is G-7 a Inharmonious Club ? A Brief Picture | UPSC

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IASbhai Daily Editorial Hunt | 11th June 2020

 “Just when the caterpillar thought the world was ending, he turned into a butterfly.” –Proverb

Dear Aspirants
IASbhai Editorial Hunt is an initiative to dilute major Editorials of leading Newspapers in India which are most relevant to UPSC preparation –‘THE HINDU, LIVEMINT , INDIAN EXPRESS’ and help millions of readers who find difficulty in answer writing and making notes everyday. Here we choose two editorials on daily basis and analyse them with respect to UPSC MAINS 2020.

EDITORIAL HUNT 88:An unravelling of the Group of Seven

       SOURCES:   THE HINDU EDITORIAL/EDITORIALS FOR UPSC CSE MAINS 2020

Daily the Hindu editorial hunt

Jayant Prasad

Jayant Prasad, a former diplomat, served as Director General of the Institute for Defence Studies and Analyses

      HEADLINES:

An unravelling of the Group of Seven

      CENTRAL THEME:

With the world in disorder, a new mechanism will have value only if it focuses on key global issues

SYLLABUS COVERED: GS 2: International grouping

      MAINS QUESTION:

 G-7 is a Inharmonious Club of rich players with least minimum results. Do you think there needs to be a reorganisation . Substantiate   -(GS 2)

      LEARNING: 

After reading this article you will be able to answer :

  • How G7 is less powerful during the times of COVID-19 ?
  • Why not G-10 is a solution ?
  • Who are Emerging – 7 ?

      INTRODUCTION: 

The next G7 summit, tentatively scheduled in Washington DC in mid-June, has been postponed by the host, U.S. President Donald Trump.  

  • German Chancellor Angela Merkel’s decision to stay away from the meeting, ostensibly because of restrictions on travel imposed by COVID-19.
  • The recent meetings of G7 have had desultory results.

      BODY: 

LOGIC OF EXPANSION

  Mr. Trump declared that in any case, the G7 “is a very outdated group of countries” and no longer properly represented “what’s going on in the world”.

WHY NOT A G10 OR G11 INSTEAD?

White House Director of Strategic Communications said the U.S. President wanted to include other countries, including the Five Eyes countries (an intelligence alliance comprising Australia, Canada, New Zealand, the United Kingdom and the United States), and to talk about the future of China.

  • IMMEDIATE REACTION : A Chinese Ministry of Foreign Affairs official immediately reacted, labelling it as “seeking a clique targeting China”.
  • INDIA’s INCLUSION : China’s objection to an expanded G7 is no reason for India to stay away from it, if invited to join.
  • SPECIAL INVITEE : India has attended several G7 summits earlier too.
  • RESTRICTED CLUB : The G7 emerged as a restricted club of the rich democracies in the early 1970s.
  • OPEC SHOCKS : Organization of the Petroleum Exporting Countries (OPEC) imposed an embargo against Canada, Japan, the Netherlands, and the United States, shocked their economies.

ECONOMIC CIRCUMSTANCES

  • THEN : When constituted, the G7 countries accounted for close to two-thirds of global GDP.
  • NOW : According to the 2017 report of the accountancy firm, PwC, “The World in 2050”, they now account for less than a third of global GDP on a purchasing power parity (PPP) basis.

EMERGING “7” :

  • EMERGING ECONOMIES : The seven largest emerging economies (E7, or “Emerging 7”), comprising Brazil, China, India, Indonesia, Mexico, Russia and Turkey, account for over a third of global GDP on purchasing power parity (PPP) terms.
  • INDIA STANDS THIRD : India’s economy is already the third largest in the world in PPP terms, even if way behind that of the U.S. and China.
  • BY 2050 : the PwC Report predicts, six of the seven of the world’s best performing economies will be China, India, the United States, Indonesia, Brazil, and Russia.
  • PROJECTED SCORE : It projects that India’s GDP will increase to $17 trillion in 2030 and $42 trillion in 2050 in PPP terms, in second place after China, just ahead of the United States.

  This is predicated on India overcoming the challenge of COVID-19, sustaining its reform process and ensuring adequate investments in infrastructure, institutions, governance, education and health.

THE LIMITATIONS OF G7

  • ADDRESSING CORE ISSUES : The success of multilateral institutions are judged by the standard of whether or not they have successfully addressed the core global or regional challenges of the time.

EXAMPLE
The G7 failed to head off the economic downturn of 2007-08, which led to the rise of the G20.

  • OTHER PLAYERS :  G20 has provided a degree of confidence, by promoting open markets, and stimulus, preventing a collapse of the global financial system.
  • ADDRESSING CONTEMPORARY ISSUES : The G7 has not covered itself with glory with respect to contemporary issues, such as the COVID-19 pandemic, climate change, the challenge of the Daesh, and the crisis of state collapse in West Asia.
  • ACTIONS SPEAK LOUDER : It had announced its members would phase out all fossil fuels and subsidies, but has not so far announced any plan of action to do so.
  • GLOBAL IMPETUS : The G7 countries account for 59% of historic global CO2 emissions (“from 1850 to 2010”), and

Their coal fired plants emit “twice more CO2 than those of the entire African continent”.

      IASbhai Windup: 

NEED FOR A NEW INSTITUTION

The world is in a state of disorder.

  • The global economy has stalled and COVID-19 will inevitably create widespread distress.
  • NEED OF REVIVAL : Nations need dexterity and resilience to cope with the current flux, as also a revival of multilateralism, for they have been seeking national solutions for problems that are unresolvable internally.
  • POSSIBLE SQUAD : It would be ideal to include in it the seven future leading economies, plus Germany, Japan, the U.K., France, Mexico, Turkey, South Korea, and Australia.
  • REVITALISING FOCUS : A new international mechanism will have value only if it focuses on key global issues.
  • INDIA’s VISION : India would be vitally interested in three: international trade, climate change, and the COVID-19 crisis.
  • RETREATING LAWS : A related aspect is how to push for observing international law and preventing the retreat from liberal values on which public goods are predicated.

CHALLENGES : 

  • REVIVAL OF GROWTH : Global public health and the revival of growth and trade in a sustainable way (that also reduces the inequalities among and within nations) would pose a huge challenge.
  • SECOND ORDER TREATMENT : Second order priorities for India would be cross-cutting issues such as counter-terrorism and counter-proliferation.

 

TRENDING NOW : Important The Hindu Editorials 

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