How can the G20 adapt to a changing global economic landscape?

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G20 Leaders Acknowledge Global Order Rupture and Seek to Reinforce Multilateralism

G20 leaders convened in South Africa, acknowledging a significant "rupture" in the global order characterized by geopolitical blocs, protectionism, and heightened instability. Despite the absence of the United States and divisions over international conflicts, the attending leaders affirmed the continued relevance of multilateralism and the need for the G20 to adapt. Discussions highlighted the shifting global economic centre of gravity and the imperative to address emerging economies and the Global South.
Acknowledging a World Order Rupture

Canadian Prime Minister Mark Carney described the current global situation not as a transition but as a "rupture," with an increasing number of countries retreating into geopolitical blocs or embracing protectionism. This sentiment was echoed in a joint G20 statement, which noted "rising geopolitical and geo-economic competition and instability, heightened conflicts and wars, deepening inequality, increasing global economic uncertainty and fragmentation." This acknowledgment underscores the profound challenges facing the international system and the G20's role within it.
Reinforcing the Value of Multilateralism

South African President Cyril Ramaphosa emphasized that the G20 summit, the first to be held in Africa, served to underscore the value and relevance of multilateralism, even amidst acknowledged challenges. The final leaders' declaration was issued despite objections from the United States, with organizations like Oxfam commending South Africa for ensuring the G20 collectively agreed on a declaration defending multilateralism against powerful opposition. This collective agreement, even in the face of dissent, signals a commitment to collaborative approaches.
Refocusing on Strategic Economic Issues and Shifting Gravity

French President Emmanuel Macron suggested that the G20 might be at the end of a cycle and needs to refocus on strategic economic issues, noting the difficulties in finding common ground on armed conflicts. Concurrently, Canadian Prime Minister Mark Carney pointed out that "the centre of gravity in the global economy is shifting," implying a necessary recalibration of the G20's focus to better consider emerging economies and the Global South. The inclusion of non-G20 emerging and developing countries in the summit discussions was seen as a strategy to neutralize the impact of the US absence and inject new perspectives.
Adapting to a Fragmenting World

The G20, originally founded after the 1997-1998 Asian financial crisis to bolster global economic and financial stability, has broadened its agenda over time to include climate change, sustainable development, global health, and conflicts. While these issues have economic implications, their political dimensions have led to impasses, particularly concerning conflicts such as the war in Ukraine and the Israel-Hamas conflict. The strategy of inviting a wider range of emerging powers and developing countries was viewed as a measure to infuse new life into multilateralism and adapt to the evolving global landscape.

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How can the G20 adapt to a changing global economic landscape?

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