The Importance of Multilateral Reforms in the G-20

India has expressed that its G-20 presidency will be focused, proactive, ambitious, and inclusive.

• India's main goal is to foster global consensus on delivering global goods, addressing security issues, and promoting critical development. As such, multilateral reform is a top priority.
• Consequently, both Think 20 and the G-20 Idea Bank have identified multilateral reforms as a key priority.

Why is reforming multilateralism challenging?

• Multilateralism seems to clash with the emerging multiplex global order. This new world order encourages the creation of new coalitions and clubs of like-minded nations, complicating the reform of existing institutions and frameworks.
• Powers that maintain the status quo view multilateral reforms as a zero-sum game. For instance, in institutions like the World Bank and the IMF, Europe and the U.S. fear that reform would diminish their dominance and influence. This makes reaching a consensus or voting on reform in these institutions difficult.
• Multilateralism is deeply rooted in global power politics. Any attempt to reform multilateral institutions requires changes in the current power distribution, which is not easily achieved and could have negative consequences if not handled carefully.
• Due to persistent stalemates, multilateralism has lost the trust of the majority.

Learn more about UNSC reforms here.

Why is multilateralism crucial?

• Multilateral reform and cooperation are needed in today's world for several reasons:
  • The social and economic advancements that global society has achieved in recent decades have been undone by the COVID-19 pandemic .
  • Global issues like cybersecurity, macroeconomic instability, migration, climate change, and conflict can only be resolved collectively.
  • Most of the challenges nations face today are global in nature and necessitate global solutions.

What roles can the G-20 and India play?

• To address the crises of utility and trust, the G-20 should concentrate on resolving only the most pressing global issues and present itself as the model for new multilateralism.
  • Issues like energy, food, and water security could serve as examples, as they have the potential to trigger a global economic recession and stagflation .
• To address the crises of utility, legitimacy, and trust in multilateralism, a model is required, and the G-20 could serve this role.
  • For instance, to enhance its legitimacy, the G20 could invite the UN Secretary-General and General Assembly President to be permanent invitees, and admit the African Union as a permanent member.
• Today's problems require global cooperation and solutions. Therefore, while supporting multilateral cooperation, the G-20 should also promote minilateral groupings as a new form of multilateralism and work to transform them into multi-stakeholder partnerships.
• To address the issues within multilateralism, the G-20 needs to propose multiple solutions. Currently, the narrative of multilateralism reform is confined to elite circles.
  • India should also encourage the upcoming chairs of the group, Brazil and South Africa, to prioritize multilateral reforms.
  • The G-20 could establish a dedicated engagement group to bring the narrative to the forefront of global discourse.