Finance ministry plans to set up G-20 secretariat

With G-20 becoming the bulwark for international economic and financial cooperation, India plans to play a more proactive role at the forum that has effectively replaced G-8. It is set to create a new secretariat, devoted exclusively to G-20.

The idea for creation of the secretariat has the blessings of the Prime Minister’s Office. The secretariat would come in handy if India hosts G-20 summit in future. “The secretariat will function under the Department of Economic Affairs and will be headed by an officer of the rank of a joint secretary. It will provide the backroom support for G-20,” said an official.

The Department of Economic Affairs, under the finance ministry, handles matters relating to global economy and finance at present. Senior officers in the department look after multilateral and bilateral forums, including the World Bank, International Monetary Fund and Asian Development Bank, besides G-20. Works relating to non-economic forums, like the United Nations, are largely coordinated by the Ministry of External Affairs (MEA). It also has a separate wing called the technical cooperation division that handles G-20, though it draws support from the finance ministry, as the forum presides over issues that are highly technical in nature.

The Department of Economic Affairs is currently in the process of putting approvals in place for the creation of new posts that will be required for the secretariat. “Besides the joint secretary, there are likely to be three director-level officials and researchers. The secretariat will have arrangement with external research agencies for support. It will continue to draw on inputs from various other ministries,” said the official.

More than half a dozen research organisations, like the Indian Council for Research on International Economic Relations (Icrier), National Institute of Public Policy and Finance and National Council for Applied Economic Research, have been shortlisted for assisting the secretariat. “The issues being handled by G-20 are technical in nature. Co-opting experts and specialists is necessary since the government does not have the expertise,” said Icrier Director and Chief Executive Rajiv Kumar.

Kumar cites the example of South Korea, which has created a presidential committee for G-20, ahead of hosting a summit in November 2010.

An official, who did not wish to be named, said the secretariat was required to create the human infrastructure and add value in the government system to engage with other members of G-20 on the same table.

The forum, which has representation from the world’s 20 advanced and emerging economies, gained importance during the global slowdown. Though the finance ministry is keen to set up the secretariat soon, it may take a few months before the new office actually takes shape. The secretariat, however, may not be ready before the June summit of G-20 leaders in Canada.