India to push big for multilateral reforms of WTO, IMF as G20 Chair

Focus will also be on climate justice, green financing

As India readies to take over the presidency of G20, one of the key agenda items it will push for will be reforms in institutions like the World Bank and International Monetary Fund (IMF) to make them more attuned to the needs and aspirations of developing economies, Business Standard has learnt.

Long-pending reforms in multilateral institutions is something that India, as chair, would like to see a solution to, sources say. The belief here, and in almost all developing economies, is that there is under-representation of the ‘global south’ nations from Asia, Africa and Latin America, and a bias towards European and North American nations.

“The institutions need a greater diversity of perspective and a more balanced approach if they are to retain relevance this century,” said a senior official aware of the work going on in drafting India’s agenda.

The official, who did not wish to be named, said deliberations are still ongoing as to whether these reforms will include voting reforms in organisations like the World Bank and IMF.

After the G20 Bali Summit, India will take over the chair from December 1 to November 30, 2023. The main G20 Heads of State Summit will be held in New Delhi in September 2023, but there will be various track meetings held across the country.

Officials at the Ministry of External Affairs said ongoing work on multilateral reforms in the context of the G20 is broad and encompasses a host of issues that aim to better represent the growing capabilities of developing nations. Initial work on this subject will take a cue from India’s earlier work on creating consensus about multilateral reform at the BRICS forum.

India had been pushing for reforms in a long list of multilateral institutions, including the World Trade Organization, IMF, World Bank, and the United Nations, among others. This included adhering to a principle that multilateralism should promote international law, democracy, equity and justice, mutual respect, right to development and non-interference in internal affairs of any country without double standards.

“As a result, India and other like-minded nations would strive to make reforms that allow more meaningful participation of developing and least developed countries, in global decision-making processes," a second official said.

India will also seek ways to ensure climate justice by working on establishing pathways for speedier climate financing, officials said. Climate financing has been promised by developed nations to help poorer countries curb their emissions and strengthen their resilience towards adverse weather events. But the funds are yet to flow.

"We recognize the issue is a contentious one. Richer nations in the G20 are expected to argue for greater flexibility and a longer timeframe for providing climate funds pointing to economic downturns brought on by the Covid-19 pandemic and the war in Ukraine. But the government will work with all the member nations to find a way forward,” a third official said.

Meanwhile, newer issue such as the regulation of cryptocurrency is an ongoing conversation, he said.