Leaders of the world’s biggest economies are likely to discuss sustainability, the war in Ukraine, and cryptocurrency regulation at the 18th G20 Summit to be held in India this weekend. However, border disputes could weigh heavy, leading to notable absences and a lack of consensus.
Key Takeaways
- World leaders will meet at the 2023 G20 Summit in India to consider issues related to the global economy.
- The G20, which is made up of 19 countries and the European Union, accounts for around 85% of global GDP and gathers annually at the G20 Summit.
- Differing positions on the war in Ukraine and related economic sanctions against Russia could bring diplomatic efforts to a halt.
- The G20 leaders are expected to discuss global standards for cryptocurrency regulation.
India Sets G20 Stage, Russian President Putin and Chinese President Xi To Skip
The Group of 20 or G20, made up of 19 countries and the European Union, was founded in 1999 after the Asian financial crisis to discuss global economic and financial issues. Today, it accounts for around 85% of global gross domestic product (GDP), more than 75% of global trade, and about two-thirds of the world’s population. This is the first time India, that currently holds the G20 presidency, is hosting the annual event, with sustainability featuring prominently in the event’s theme.
However, not all world leaders will be heading to the Indian capital, with Russian President Vladamir Putin and Chinese President Xi Jinping absent. While President Xi did not give a reason for opting out, it’s important to note that China and India are involved in a border dispute. Premier Li Qiang will represent the country in his stead. Putin will not be attending the G20 Summit due to a “special military operation,” a Kremlin spokesperson told Russian state-run media, with Russia’s war on Ukraine remaining a source of tension between G20 members.
Tensions Rise Surrounding War in Ukraine
While G20 leaders previously stated that “G20 is not the forum to resolve security issues, we acknowledge that security issues can have significant consequences for the global economy.” Most G20 members have condemned Russia’s invasion of Ukraine and issued economic sanctions against Russia, and different stances regarding the war in Ukraine could pose a threat to G20 diplomacy outcomes.
Indian G20 officials have refrained from calling the Russian invasion of Ukraine a “war” and avoided conversations around economic sanctions, a move that has been criticized by other members including French officials, who reportedly stated they would not sign on the communique without condemning the war in Ukraine. The U.S. is also expected to advocate for Ukraine, with the White House stating President Joe Biden would represent the U.S. “commitment for Ukraine” at the G20 Summit.
Crafting Standardized Crypto Regulation on a Global Scale
Leaders are also expected to discuss a global standard to regulate cryptocurrencies, with India calling for a framework to handle crypto issues under its G20 presidency. While decisions made by the G20 have no legal impact, the forum can have a major influence on policies implemented in members’ countries and global diplomacy. If the forum agrees on a global framework for crypto regulation, it could impact the way that many governments handle crypto regulations.
