G20 in a changing world

Editor's note: Alexander Ayertey Odonkor, a special commentator on current affairs for CGTN, is a global economist with a keen interest in the social, environmental and economic landscape of both developing and developed countries, particularly in Asia, Africa and Europe. The article reflects the author's opinions and not necessarily the views of CGTN.

South Africa will host its maiden Group of Twenty (G20) Leaders' Summit in Johannesburg from November 22 to 23. Expected to bring together leaders from the world's major economies, in a bid to address daunting global challenges, this is the first time the G20 summit is held on African soil.

The event also marks the first time an African country takes the helm of the G20. With South Africa's G20 presidency anchored on the African philosophy "Ubuntu" translated as "I am because we are" or "I am because you are," – emphasizing the interconnectedness of individuals within a broader communal, environmental, societal and spiritual context, the African giant seeks a collective approach to global economic and financial challenges.

For this reason, South Africa has adopted "Solidarity, Equality, Sustainability" as the theme for its G20 presidency, which takes place at a time when the world faces a polycrisis characterized by growing risk complexity and a weakened global economy. World Bank data show that global growth is expected to be the weakest in 17 years, outside of outright recessions. By 2027, global GDP is forecast to average just 2.5 percent in the 2020s – the slowest pace of any decade since the 1960s.

The picture is nearly identical when narrowed down to G20 economies. A recent IMF report on the G20 suggests growth is forecast to remain stable in the short term; however, medium-term growth prospects remain lacklustre, with five-year-ahead growth in most G20 economies expected to be weaker than pre-pandemic averages. In other words, the persistent decline in global growth prospects in the medium- and long-term, especially for emerging markets and developing economies, imperils the ability of these countries to meet their development goals.

For countries around the globe, especially those in the Global South, economic growth is the most effective means of overcoming poverty and improving living standards. Over the last three and a half decades, the total population living in extreme poverty has dropped from approximately 2.3 billion in 1990 to around 831 million in 2025, largely due to robust, broad-based economic growth in East Asia and South Asia.

However, over the last decade, World Bank data indicate that global poverty reduction has slowed substantially. Mainly attributed to sluggish global growth, exacerbated by an intricate web of interconnected crises including the COVID-19 pandemic, conflicts, climate shocks and rising debt levels, the ''new normal'' of low global growth calls for a coordinated policy response at the national and global levels, to reverse the slowdown and foster shared growth.

At the 2025 G20 summit, leaders from around the globe will be presented with the unique opportunity to rebuild policy momentum and coordinate policy actions, focusing on creating a more cooperative, equitable, prosperous and sustainable global economic and financial system, now and into the future.

Through bold policy actions anchored on robust macroeconomic frameworks and supported by enhanced cross-border cooperation, G20 policymakers could help strengthen the foundation of global economic stability, an essential catalyst for economic development and the timely achievement of key global commitments, including the 2030 Agenda for Sustainable Development.

Founded in 1999, following the Asian financial crisis, the G20 has become the preeminent forum for international economic cooperation, playing an indispensable role in shaping the global architecture and governance of all major economic issues. At present, the G20, which comprises 19 countries and two regional bodies, namely the African Union and the European Union, together represent about two-thirds of the world's entire population, and account for around 85 percent of the global GDP and more than 75 percent of global trade.  

With this enormous capacity, the G20 has the unique responsibility to set the international agenda on economic issues and coordinate global policy on key fields including trade, health and climate change. At present, this window of opportunity is critical, especially for developing countries, as the "new normal" of low global growth hinders their ability to navigate the clean energy transition and build resilient, sustainable, and inclusive societies.

As widely known, in 2009, developed countries agreed on mobilizing $100 billion annually for developing countries to adapt to climate change and reduce greenhouse gases, however, it was until 2022 that this goal was first met – and even with that, only 18 percent of the total climate finance went to least developed countries, while small island developing states received a paltry 2.8 percent.

In an attempt to address this pressing challenge, South Africa included climate finance in the four key considerations that have so far shaped its approach across G20 Working Groups in both the Sherpa and the Finance Tracks. Through this agenda, which is one of the main issues for discussion at the G20 Leaders' Summit, South Africa seeks to secure agreement on increasing the quantity and quality of climate finance flows to developing countries.  

Considering the complexity of challenges that presently hamstrung the global economy, it is therefore imperative that, as various leaders, including G20 finance ministers and central bank governors meet in Johannesburg, policymakers should not only focus on tackling drivers of medium-term growth, but also initiate bold actions to help build a global economic and financial architecture that meets the changing dynamics of the world economy.

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