G20 Summit in New Delhi will impact Global Economy

G20 Summit in New Delhi will impact global economy
Image Courtesy – MINT

The recently completed G20 summit in New Delhi wasn’t just our typical gathering of leaders from the world’s top 20 economies – it was a platform that shone a light on some significant changes happening on the global stage in Asia. G20 Summit also included the European Union (EU), and it didn’t just stop at expanding its membership; it started into revolutionary economic projects between India and other global nations. We’ll discuss the pivotal developments in G20 Summit and how it can affect Pakistan in the years to come, with a special focus on geo-economic networks in today’s world.

Welcoming the African Union in G20 Summit

For the first time, a bold decision was taken by the G20 countries to include the African Union (AU) in the G20 arena and it highlights the importance of Indian economic projections. Inclusion of African Union in the G20 summit signals an inclusive approach, breaking trend of traditional dominance by the western powers with the economic groups created around the globe. At the same time, non-inclusion of Russia’s Vladimir Putin and China’s Xi Jinping sends cold image of flexing Indian muscles to the western bloc members, further adding geopolitical complexities to the economic race.

Navigating Territorial Sovereignty

During G20 summit, violation of territorial sovereignty and use to force is officially condemned but various world leaders were cautious enough while criticizing the Russia’s actions in Ukraine directly. Names were not taken by the diplomats and such restraint and compromise aim to get multiple world players together and bridge significant geopolitical differences for the betterment of region.

The India-Middle East-Europe Economic Corridor

The most important announcement coming out of G20 was the launch of The India-Middle East-Europe Economic Corridor seemingly against the China-Pakistan Economic Corridor. It reminds of the old days ‘Spice Route’ intended to link India with other regional powers such as Europe through Arabian Peninsula. As soon as the project was announced in the G20 summit, it received heaps of praise by the world leaders especially by the US President Joe Biden. He said this project could become a significant competitor to China’s Belt and Road Initiative. It was also revealed in the summit that this project will cover everything from transcontinental transportation to energy and data connectivity.

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Towards a More Inclusive G20 and G7

Majority groups in the world are gradually expanding their reach and eager to include other players from the world, who can contribute to the mutual economic growth of the countries. These expansions are inspired by the BRICS & SCO and now African Union (AU) as an emerging and valuable partner in the summit. Such transformations are driven by geopolitics & Geo-economics, demonstrated by the launch of the India-Middle East-Europe Economic Corridor.

The Exclusive Nature of the Economic Corridor

From the looks of it, it seems that China might not have liked the initiative taken by the G20 Summit and thus remained absent from the conference. The notables from the conference shed lights on the protentional expansion & future connectivity of the Middle eastern & European countries. It is pertinent to mention that The India-Middle East-Europe Economic Corridor could connect Israel with the Arab States in future, fostering regional cooperation and economic growth of the partners. The rise of multiple transcontinental energy and trade corridors will spark healthy competition, encouraging developing states to attract investments and become vital players in these expansive networks.

Pakistan’s Role and Challenges

At this critical juncture, when our neighbors are consistently moving forward in every facet of governance, Pakistan has found itself as just a mere spectator, due to internal economic, governance and political challenges. Pakistanis saw CPEC under Belt and Road Initiative by China as a beacon of hope for its financial and economic challenges, but we have not been able to take advantage of the project. Pakistan’s stance on Indian Human Rights violations in Indian Occupied Kashmir, Independence Movements in India and Separatists movements is obviously, but the world seem not to care enough and are overshadowed by the economic interests of their people.

Change in Asian Landscape

The recently concluded G20 summit in New Delhi has painted a picture of India being an upcoming economic power in the region, which is quite worrisome for Pakistanis. The launch of the India-Middle East-Europe Economic Corridor and Inclusion of the African Union are all pointing toward shifting global landscape.

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