Consensus eluded a meeting of finance ministers and central bank governors of the Group of 20 countries that ended Tuesday in India as members failed to bridge their differences on Russia’s war in Ukraine.
“We still don’t have a common language on the Russia-Ukraine war,” Indian Finance Minister Nirmala Sitharaman told reporters after the two-day meeting wrapped up in Gandhinagar city without issuing a joint statement.
Instead, India, which is the president of the group this year, issued what is called a chair summary and an outcome document in which it summed up the talks and noted disagreements.
According to the chair summary, China and Russia objected to paragraphs referring to the war that said it was causing “immense human suffering” and “exacerbating existing fragilities in the global economy.”
The failure to reach an accord was not unexpected. As the war in Ukraine is a matter of sharp diplomatic differences, India has not been able to forge a consensus document at any of the key G20 events held so far.
Several G20 members also condemned Russia for refusing to extend a deal to allow critical Ukrainian grain exports through the Black Sea, India’s finance minister said at a press conference.
Several members condemned it saying that shouldn't have happened,” Sitharaman said. “Food passing through the Black Sea shouldn't have been stopped or suspended."
Russia’s quitting the deal has sparked fears about the impact on low-income countries in Asia and Africa, where high food prices already have pushed more people into poverty.
While India has remained mostly neutral on the Ukraine war, it has expressed concern about the impact of the conflict on developing countries. It said its priority during its presidency is to focus on the need to help nations grappling with a debt crisis in the wake of the COVID-19 pandemic and the Ukraine conflict.
Sitharaman said members discussed the overall global economic outlook, specifically food and energy issues, climate financing and how to improve assistance to debt-distressed countries. She indicated that progress had been made on key issues.
More than half of all low-income countries are near or in debt distress, twice as many as in 2015, according to U.S. Treasury Secretary Janet Yellen. Before the meeting began, she said that ending the war in Ukraine is “the single best thing we can do for the global economy.”
The chief of the International Monetary Fund, Kristalina Georgieva, emphasized the need for a more effective and speedier debt restructuring process at the meeting.
"The costs of delays in reaching agreement on needed debt treatments are borne acutely by borrower countries and their people, who are least able to bear this burden," she said.
Global growth is slowing and divergence in the economic fortunes of countries was a persistent concern, Georgieva said. "The world today is more shock-prone and fragile, with climate change, pandemics and Russia's invasion of Ukraine all causing widespread turmoil."
World Bank President Ajay Banga echoed similar fears. He spoke of “mistrust that is quietly pulling the Global North and South apart at a time when we need to be uniting," and said that that “lack of progress was in danger of splitting the global economy to the detriment of the world’s poorest.”
India, which wants to emerge as the voice of what it calls the “Global South” has also been urging the G20 to forge a consensus on reforms for multilateral development banks.
A G20 panel has said in a report that international development banks must create a new funding mechanism and triple sustainable lending by 2030 to eliminate poverty and achieve climate goals. It also called for big changes in their operations.
The summit meeting of the G20 is scheduled to be held in September.
