Emerging Institutions and Global Economic Governance

6.1 G-20 and Global Economic Coordination

The G-20 (Group of Twenty) is the premier forum for international economic cooperation — representing 85% of global GDP, 75% of global trade, and 60% of the world's population. It includes 19 countries + EU + African Union (added 2023).

India's G20 Presidency (2022-23):

• India held the G20 Presidency from December 2022 to November 2023
• Theme: "Vasudhaiva Kutumbakam — One Earth, One Family, One Future"
• Key achievements: New Delhi Declaration (September 2023), inclusion of African Union as permanent G20 member, Debt Restructuring Framework for developing countries (Common Framework progress), digital public infrastructure agenda
• India launched Global Digital Public Infrastructure Repository (GDPIR) — documenting India Stack (UPI, Aadhaar, DigiLocker) as global model

G20 Financial Inclusion Agenda: India pushed for Global Partnership for Financial Inclusion (GPFI) — digital payments, fintech for development, women's financial inclusion.

6.2 Asian Infrastructure Investment Bank (AIIB)

• Established: 2016, proposed by China in 2013
• Headquartered: Beijing, China
• Members: 109 members (approved members, 2024) — including UK, Germany, France, Australia, India
• Purpose: Infrastructure investment in Asia and beyond; complement ADB and World Bank
• Governance: China holds 26.6% shares and votes (largest); India holds 8.52% (third largest); Russia 6%
• India's AIIB loan portfolio: approximately $10+ billion (2024) — metro projects, highways, renewable energy
• Critics: Chinese dominance concerns, AAA rating validated (2018)

6.3 New Development Bank (NDB) — BRICS Bank

• Established: July 2014 (Fortaleza, Brazil BRICS Summit); operational 2016
• Headquartered: Shanghai, China
• Founding BRICS members: Brazil, Russia, India, China, South Africa — equal shareholding (20% each initially)
• New Members (2021-24): Bangladesh, UAE, Egypt, Uruguay, Ethiopia — now 9 members
• Purpose: Infrastructure and sustainable development financing for BRICS and other developing countries
• NDB's first President: K.V. Kamath (India), 2015-2020; Marcos Prado Troyjo (Brazil), 2020; Dilma Rousseff (Brazil), 2023-present
• India's NDB loans: $13+ billion in approved projects (2024) — metros, irrigation, roads, renewable energy
• Initial authorised capital: $100 billion (paid-in: $10 billion from BRICS nations)

6.4 Global Debt Distress and the Common Framework

A major global economic issue (2021-2025): Post-COVID debt distress in developing countries. Countries like Zambia, Ghana, Sri Lanka, Ethiopia, Pakistan, and Egypt defaulted or restructured sovereign debt.

G20 Common Framework for Debt Treatment Beyond DSSI:

• Agreed at G20 (November 2020) to restructure debt of low-income countries
• Covers countries eligible for Debt Service Suspension Initiative (DSSI) under HIPC initiative
• India participated as G20 presidency holder in facilitating Zambia and Ethiopia debt restructuring discussions
• Challenge: China's bilateral lending (BRI loans) makes debt restructuring complex — China resists haircuts

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