On Thursday, Indian Finance Minister Nirmala Sitharaman addressed G20 member states and advocated for multilateral funding for a mechanism that enhances global preparedness in case of a future pandemic. She also pushed for supporting low and middle-income countries by ensuring equitable access to COVID-19 vaccines, which she opined is necessary for global economic recovery.
While speaking at the G20 Finance Ministers and Central Bank Governors’ meeting for the first time, which was held virtually for two days, she argued that the gaps in the world’s pandemic preparedness came to the forefront during the COVID-19 outbreak. She also talked about how “structural bottlenecks” in global supply chains, fuelled by inflation, had further endangered the global economy.
Furthermore, Sitharaman pointed out that the increasing number of COVID-19 variants have made it necessary for the G20 to consider how best to reorient vaccine distribution for the various low and middle-income nations, noting that the financial support provided to these countries is and has been inadequate.
Attributing the unpreparedness of international aid organisations to the absence of effective preventative and containment mechanisms, Sitharaman called on the G20 Joint Finance and Health Task Force to ensure that similar mistakes do not occur in future pandemics.
Finance Minister Smt. @nsitharaman participates in 1st #G20 Finance Ministers and Central Bank Governors meeting under @G20Indonesia Presidency. FM will virtually join sessions during the 2-day meeting to discuss current #global economic issues and #G20 priorities for 2022. (1/4) pic.twitter.com/9xvb3vxrNK
— Ministry of Finance (@FinMinIndia) February 17, 2022
“We need to have an independent governance mechanism even if they are located in multilateral institutions and keep principles of inclusivity, transparency and equity in mind. Increased funding will be needed from multilateral development banks. Resilient and Sustainability Trust (RST) being created by the IMF must keep pandemic preparedness in mind,” she said.
Sitharaman’s statements come as India prepares to take up the G20 presidency from December 1 this year to November 30, 2023, during which time New Delhi will also host a G20 Summit.
In preparation for its presidency, the Indian cabinet approved plans for establishing a G20 Secretariat, along with other necessary structures, earlier this week. The G20 Secretariat is usually set up to handle “substantive, knowledge, content, technical, media, security, and logistical” issues related to a country’s G20 Presidency.
The Secretariat in India will operate till February 2024 with officials from the ministries of External Affairs and Finance—along with several other staff from other relevant Departments—under the guidance of a committee led by the country's Prime Minister, Finance Minister, Home Minister, External Affairs Minister, and the G20 Sherpa.
The G20, of which India is a founding member, is a forum that improves international economic cooperation. Its members include the world’s largest economies: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, Britain, the United States, and the European Union. In all, its members account for 80% of global GDP and 75% of international trade.