G20 must prepare for the next revolutions
The two-day G20 summit hosted by China has hammered home the message that the time has come for the multilateral body to be translated into a forum of action. The concerns echoed by the host and the Chinese President Xi Jinping underlines that the global economy should no more be threatened by rising protectionism and risks emanating from highly leveraged financial markets. Though China was keen to keep the summit focused on economic issues and prevent other controversies from shadowing the target agenda, yet some of the members harped on drawing battle lines in disputes over issues stretching from trade and investment to tax policy followed by industrial overcapacity.
This shows the emerging fault lines among many of the members who are more concerned about settling scores instead of charting a road map for a common agenda of development. Despite having differences of opinion, G20 leaders have agreed to emphasise on a joint communiqué which will include all policy measures starting from monetary, fiscal and structural reforms so as to achieve solid and sustainable economic growth among the group. The need of the hour is to unleash one more set of economic reforms for rebooting the growth drivers as they are fast fading at the moment. Besides, Xi has stressed on a new round of technological and industrial revolution which now needs to get momentum for infusing fresh energy into the global economy.
On the sidelines of the G20 summit, Prime Minister Narendra Modi addressed an informal gathering of the leaders of the Brazil-Russia-India-China-South Africa (BRICS) group wherein he highlighted an urgent need to intensify joint efforts not only to fight terror, but coordinate actions to isolate those who are supporters and sponsors of the same. While expressing deep concerns in rising terrorism (particularly from the neighbouring Pakistan), Modi said that response to handling such elements should be above politics. He had a close door talk with Xi, when he told the latter that India and China must be sensitive to each other's concerns.
He raised India's reservations regarding the China-Pakistan's Economic Corridor, a $45 billion connectivity project that passes through Pakistan-occupied Kashmir. China showed willingness to work with India to maintain its hard-won relations and advance cooperation which will go a long way in repairing the strained bilateral ties between the two emerging giants in the global power calculus. The Hangzhou summit also witnessed Xi's engagement with US President Barack Obama where the latter had urged China to uphold its legal obligations in the disputed waters of the South China Sea and highlighted its commitment to regional ties.
China's adherence to safeguard its sovereignty and maritime rights in the SCS as per the yardsticks set by the nine dash line failed to bring both sides closer to the thornier issues. Around the same time, the European Commission President Jean-Claude Juncker expressed unhappiness over China's industrial overcapacity which is badly hitting the European steel market and asked the country to address it immediately. Above all, the G20 must focus on building a roadmap for mutual understanding that promotes development and cooperation among all the members.