Ajit Karn
China’s efforts to damp down references to the Ukraine war prevented G20 finance ministers from agreeing to a joint statement on the global economy during discussions in India on Saturday.
Instead, India, the current president of the G20, issued a “chair’s summary” stating that “most members firmly condemned the war in Ukraine” and that there were “different assessments of the situation and sanctions” at the two-day meeting in Bengaluru.
In a footnote, it was stated that two paragraphs in the summary about the conflict, which were adapted from the November G20 Bali Leaders’ Declaration, “were approved by all member nations with the exception of Russia and China.”
Earlier, Spain’s representative Nadia Calvino stated that it was “challenging” to agree on a statement because of “less constructive” approaches by certain unnamed nations during discussions among the 20 largest economies in the world.
One official told AFP on condition of anonymity that Beijing sought to remove the word “war” from the language of the November declaration.
Previous meetings of G20 finance ministers and central bank governors have also failed to produce a joint statement since Russia’s invasion of its neighbour in February.
Ajay Seth, a senior Indian official, stated that the Chinese and Russian representatives refused to approve the Ukraine language because “their mandate is to address economic and financial issues.”
Seth stated at the conclusion of the news conference, “On the other hand, all the other 18 countries believed that the war had implications for the global economy” and thus needed to be mentioned.
China has attempted to take a neutral stance on the conflict while maintaining close ties with its strategic ally Russia.
State news agency Xinhua quoted top diplomat Wang Yi on Wednesday as saying China was willing to “strengthen strategic coordination” with Russia after meeting President Vladimir Putin in Moscow.
On the first anniversary of the invasion, China issued a 12-point document calling for a “political resolution” to the crisis, which Ukraine’s allies viewed with scepticism.
G20 host India has also refused to condemn Russia, which is New Delhi’s largest arms supplier and has become a significant source of oil for India since the invasion.
Western nations, including the United States, Germany, and France, insisted that the language in any joint statement could not be milder than the communiqué issued in November by G20 leaders in Indonesia.
“This is a time of conflict. This war has a single cause, which is Russia and Vladimir Putin. This must be articulated explicitly at this G20 meeting, “Friday, German Finance Minister Christian Lindner addressed a news conference.
Debt settlement
India’s summary document stated that the global economic outlook had “modestly improved,” although overall development remained “slow” and risks such as elevated inflation, a resurgence of the pandemic, and high debt levels in many developing nations remained.
On climate change it emphasised the necessity of meeting “fully as soon as feasible” the commitment made by developed countries to mobilise $100 billion in climate finance annually through 2025 for impoverished countries.
In the midst of disagreements between China and the West over how to provide debt relief for impoverished nations afflicted by skyrocketing inflation due to the war, the summit also centred on debt relief for those nations.
Western officials want China to take “haircuts” on loans to debt-stricken nations, but Beijing argues that other multilateral lenders, such as the World Bank, should do the same.
According to India’s summary, “multilateral coordination by official bilateral and private creditors” must be strengthened. Delegates deemed the agreement on this language a triumph.
“In Bali during the summer of 2012, we spent three days discussing the wording of a communiqué but had no substantive discussions. We did this time around, “one negotiator said.
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Kristalina Georgieva, the head of the International Monetary Fund, termed it a “very excellent meeting” and praised the Indian presidency for focusing on “the issues that really matter,” such as inflation and debt.
Other topics included efforts towards a global tax on tech titans, the expansion of the mandate of multilateral development institutions such as the World Bank to assist nations affected by climate change, and cryptocurrencies.
