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India’s G20 Presidency has been touted by media outlets all over the world as a massive branding campaign to help India strengthen trade ties with member nations and provide an opportunity to attract investments from those countries. And why not?
The grouping dominates the global economy and trade. It represents about 85% of the global GDP (Gross Domestic Product), 75% of global trade and two-thirds of the world's population. The government is bent on deepening its trade partnerships by fast-tracking negotiations for a free trade agreements with member countries, especially the UK and the EU. India wishes to present itself as a nation ready to open its arms to the world with its large population, skilled manpower, modern infrastructure and “ease of doing business”.
Return on investment
Summits are important for dialogue and partnership between countries on various issues of global significance. But it does not take away the fact the huge burden these events put on the shoulders of the taxpayers in the developing world. The pressure to stand up to the standards underlies huge human costs that are craftfully hidden from touristy delegates.
With crucial world economies being part of the summit, results in certain agreement on financial matters, and trades. But, for the fruit to reach the most vulnerable it may take decades. Reportedly, stray dogs, and people- homeless, poor, flood-affected people, have been displaced away to the city’s exteriors. Street vendors and roadside stalls have been ordered to stay away. Demolitions have taken place, and green sheets have sprung up all over the city to cover its poverty… lights, artificially planted flowers, sculptures, and advertisements (loads of it) have been put up around the city. The people who should be benefited are mostly hidden from these world leaders, as if the ruling party is ashamed of the realities they will be talking about the hall of Bharat Mandapam in Pragati Maidan, New Delhi.
These summits have no direct economic benefit like in the case of hosting a sporting events or music concert. Interestingly singer-songwriter Taylor Swift’s celebrated “The Eras Tour” is projected to generate an astounding 5 billion dollars in consumer spending in the United States alone. The figures of such tangible economic benefits emanating from the G20 summit are surprisingly absent from the public domain.
Money being spent on hosting G20 Summit
The government in its budget for 2023-24 allocated Rs 990 crore for various arrangements to be made under G20. The finance minister had said during the budget that the presidency gave India a unique opportunity to strengthen its role in the world economic order. As per information provided by Meenakshi Lekhi, Union Minister of State for External Affairs and Culture, over 4,100 crores have been spent by the Central Government to organise the G20 Summit in New Delhi alone.
As Mint reports, the Centre and Delhi governments have spent a total of a “beautification project" with a price tag of $120 million” because “it will help showcase the world’s most populous nation’s cultural prowess and strengthen its position on the global stage.”
Hosting G20 is an event, at least it was this time in India. G20 nations have to come together to limit the money spent in the hosting process as they are a definite burden on a developing nations, particularly India.
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