IASbhai Daily Editorial Hunt | 11th June 2020
“Just when the caterpillar thought the world was ending, he turned into a butterfly.” –Proverb
EDITORIAL HUNT 88:“An unravelling of the Group of Seven“
SOURCES: THE HINDU EDITORIAL/EDITORIALS FOR UPSC CSE MAINS 2020
Jayant Prasad, a former diplomat, served as Director General of the Institute for Defence Studies and Analyses
An unravelling of the Group of Seven
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
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)
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 ?
- 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.
LOGIC OF EXPANSION
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.
- 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.
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.
- 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
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.
- 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.