The 2022 G20 Bali Summit, the Intersection of Changes and Continuities

Sunjoo Kang

(sjkang@mofa.go.kr)

Professor,

Korea National Diplomatic Academy

English Abstract

Introduction

Three to four multilateral summits are regularly held in the Asia-Pacific during the months of October and November. This includes the 17th G20 Bali Summit held in November.

Initiated after the 2008 Global Financial Crisis, the G20 summit is the “highest coordinating body of the global economy” comprising of the world’s 20 largest economies. The importance of the G20 Summit in international relations arises from its effectiveness and the nature of interactions in international relations.

The Backdrop of the 2022 G20 Summit: 3+1 Crisis

The 2022 G20 Summit had to deal with a triple crisis of COVID-19, stagflation and climate change with an addition of a geopolitical crisis which is unrelated to the original purpose of the summit.

COVID-19 at its third year remains a health risk due to uneven levels of vaccination globally despite COVAX. Levels of recovery from the pandemic’s economic shocks is also uneven.

Resolving the geopolitical crisis was prioritized over the economic crisis at the 2022 G20 Summit. Indonesia presented geopolitical stability as a precondition for economic growth from a neutral standpoint which resulted in the Russia-Ukraine War being an agenda for the G20 Summit.

Key Results of the 2022 G20 Summit

Firstly, most G20 member states view Russia-Ukraine War as aggravating human suffering and food and energy crisis and making the global economy more vulnerable. They agreed that Russia should unconditionally and completely withdraw from Ukraine and not to tolerate the use of nuclear weapons.

Secondly, the central banks of member states will remain independent while tightening their monetary policies. Furthermore, debt structuring for developing countries will be accelerated through the G20 common Framework for Debt Treatment with the implementation of a global minimum corporate tax of 15% in 2023. The dispute settlement system of the WTO will be restored to restore trust in the rules-based multilateral trading system centered around the WTO.

Thirdly, the G20 supports the central role of the WHO in pandemic response, the signing of a binding treaty on pandemics, voluntary financial support for the World Bank’s Pandemic Fund, a five-year suspension on COVID-19 vaccine patents, and the establishment of a transfer hub for vaccine technologies.

The Implications of the 2022 G20 Summit

The achievements of the 2022 G20 Summit against the backdrop of the geopolitical crisis signifies the restoration of US leadership.

The G20 has added a political function of managing the operations of international relations to its function of responding to global financial crisis. It has also addressed the ambiguity of China’s global leadership.

The G20’s orientation towards developing countries may combine with the alternative international order pursued by Russia and China. It is possible that the G20 Summit will be a competing ground for the US and China’s visions for the international order in this case.

Considerations for Policy-Making

The inclusion of the geopolitical crisis in the G20 Summit’s agendas in 2022 has enhanced its political and security uitilities and can be seen as extending the global governance of the G20. South Korea should maintain diplomatic investment in the G20 if the Summit is to evolve into a form of governance encompassing political and economic issues. It will have to prepare a new approach to managing issues and finding like-minded countries with similar positions within the G20.

South Korea should consider g20 as a diplomatic platform for its role as a ‘global pivotal state’.

The G20’s orientation towards developing countries is expected to result in an increased demand for financial support from developed countries. Consequently, South Korea shoould be prepared for such demand as the world’s 10th greatest economy.