•The G20 was formed in 1999 in the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular.

•Its aim was to secure global financial stability by involving middle-income countries.

•It represents around 85 per cent of the global GDP, over 75 per cent of the global trade, and about two-thirds of the world population.

•Policy coordination between its members in order to achieve global economic stability, sustainable growth.

•Promote financial regulations that reduce risks and prevent future financial crises.

•Create a new international financial architecture.

•The G20 does not have a charter or a secretariat. The Presidency, aided by the countries holding the Presidency before and after it (Troika), is responsible for setting the agenda of each year’s Summit. At present, the Troika is made up of Italy (2021), Indonesia (2022) and India (2023).

•The G20 process is led by the Sherpas of member countries, who are personal emissaries of the Leaders. The Sherpas oversee negotiations over the course of the year, discussing agenda items for the Summit and coordinating the substantive work of the G20.

•The G20’s work is divided into two tracks: the Finance Track and the Sherpa Track.

•The first G20 Summit took place in 2008 in Washington DC, US.

•It is a more representative grouping in comparison to its predecessors like G7 which comprised only industrialized economies and also ignored the interests of the global south.

•It plays a major role in tackling financial crises effecting global economy (during the 2007-08 financial crisis)

•It offers an opportunity to undertake bilateral or trilateral meetings with leaders of 20 countries on the sidelines of G20 summits.

•It also played a pivotal role in providing relief to countries during global crisis like the COVID-19 pandemic. The G20 countries agreed to suspend debt payments owed to them by some of the world’s poorest countries, providing billions of dollars in relief. Further in October 2021, G20 leaders pledged to help vaccinate 70% of the world’s population by mid-2022.

•Human resource development and employment.

•Informal structure of G20 : It has no permanent secretariat. The agenda changes every year according to the priorities of the presiding nation.

•Lack of effective power : G20 is not a legally binding institution.

•Influences decision-making of smaller countries.

•Russia-Ukraine Crisis

•Rising Protectionism : Globalization is retracting, and multilateral organizations have a credibility crisis. Countries around the world are choosing to be ‘G-zero’ over the G7, G20, BRICS, P5 (UNSC Permanent Members) and others. ‘G-zero’ is a term coined by political commentator Ian Bremmer to denote Every Nation for Itself.

•Exclusivity of its membership : Low representation of African Countries.

•Not able to address challenges within member nations : like US-China issue on trade, US-Russia divide on nuclear weapons, etc

•No Enforcement mechanism: G20 declarations are not legally binding