G7 needs to make itself effective beyond coalescing against Russia. It needs to take responsibility for its enunciations and make its partnerships worthwhile
Prime Minister Narendra Modi participated in the G7 Summit meeting in Germany on 26-27 June 2022. He was invited by Olaf Scholz, Chancellor of Germany, during his bilateral visit to Berlin, last month. The summit was held at the Schloss Elmau, a scenic place close to Germany’s highest peak, the Zugspitze, in the state of Bavaria.
India as an invited guest at a G7 summit is consistent along with Indonesia (the G20 chair), Argentina, Senegal (AU chair), and South Africa. As compared to the earlier summits, the outreach events are more integrated and the guest countries interact in a more unsegregated manner
Making India a firmer part of the G7 discussions is important because India is a provider of solutions. Prime Minister Modi participated in the summit days after virtually participating in the BRICS summit. India and South Africa are the two BRICS countries that are invited by the G7 as guests.
The G7 summit is held in the shadow of the continuing Ukraine war, with no end in sight. There are determined agenda items on which India made its contribution. These include issues of environment, energy, climate, food security, health, gender equality, and democracy. India’s effort is to strengthen collaboration with G7 and other guest countries.
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Prime Minister Modi spoke on food security including celebrating the International Year of Millets in 2023. He also addressed the session on investing in a better future: Climate, energy, health. Here he emphasised: “The scale that India can provide for every new technology can make that technology affordable for the whole world. The core theories of the circular economy have been an integral part of Indian culture and lifestyle.”
Germany has held the G7 presidency from 1 January and will continue till 31 December 2022. Its choice of the guest countries was a recognition of the importance of democracies sticking together, no matter whether they also talk to Russia and China in a parallel way.
When it assumed the presidency, the new coalition government had hardly been in place for a few days. Nevertheless, preparation had been done, and Germany announced that ‘progress toward an equitable world’ was the motto of the G7 presidency. Germany enunciated five objectives that it would seek to achieve: Strong alliances for a sustainable planet; setting the course for economic stability and transformation; enhancing preparedness for healthy lives; sustainable investments in a better future; and working to be stronger together. The new coalition wanted to proactively shape global issues from the start of its innings. It wanted to grasp key issues with its global partners.
However, the world drastically changed when Russia invaded Ukraine and Germany found itself in the crosshairs of a US-Russia rivalry which upended its efforts for a European security architecture based on sustainable energy and a secure Europe.
Not only did Russia scupper these plans, but Germany and other European and G7 countries were forced into implementing sanctions much to their own economic detriment. Curtailing energy supplies from Russia, which Germany, France, Japan, and others were severely dependent on, hits them hard.
The Healthy Lives approach is a G7 target, and Germany as one of the main European producers of the vaccine stepped up to deal with contributing to COVAX, building vaccine plants in Africa, for instance, but it is not coordinating with countries like India.
For instance, the attitude of the G7 countries at the WTO to the TRIPS waiver requested by India and South Africa is at variance with the ideas expressed in the G7 agenda. The conclusion of the WTO ministerial meeting left the developing countries in no doubt that when all is said and done, the developed countries still stick to their own interests, without trying to implement the multilateral commitments that they undertake.
What are the major takeaways for India from this G7 Summit?
First is the inclusion on a consistent basis which raises Indian stature. Despite differences on Ukraine, which dominate G7 thinking, India is a valuable partner for most of their agenda. That India could traverse from the BRICS summit to the G7 was a tribute to India’s strategic autonomy in foreign policy.
Second, India was among the first to get large-scale additional financing for the green economy and infrastructure. This happened during the Modi-Scholz IGC in May, when Germany announced a contribution of EUR10 billion towards this. This is a positive beginning and puts India ahead as a reliable partner.
The third important takeaway is India’s inclusion in the Just Energy Transition Partnership. This was initiated with South Africa at COP26, as a long-term ambitious approach to support transition to a low carbon, climate resilient economy. The G7 intends to work with India, Indonesia, Senegal and Vietnam to use the JETP to balance the requirements of achieving the SDGs and reducing the carbon imprint. European G7 countries are finding this a useful exercise for themselves in the current scenario when Russian energy is being sacrificed.
The fourth important issue is the announcement that the US would lead the Partnership for Global Infrastructure and Investment. This PGII intends to cover the infrastructure gap in developing countries and strengthen global economic and supply chains and thus contribute to the security among the friends of the US.
Similar ideas like Build Back Better World (B3W) were announced at the last G7 and the EU has the Global Gateway. These now need to have a follow up mechanism to see how projects can actually ensue. Otherwise, these will remain announcements shadowing the BRI. The US promises to mobilise $200 billion over the next five years, through grants, financing and leveraging the private sector. The target for the G7 for the same purpose is $ 600 billion by 2027. The Global Gateway already committed EUR300 billion. These are green energy and infrastructure initiatives but will also include ICT networks, digital infrastructure and the infrastructure for public health.
Aggregating good intentions is now the hallmark of the G7. If G7 nations seriously want to challenge China and Russia, they need to act together. Their procurement systems are varied, there is no trans-Atlantic FTA and the number of partnership initiatives far outnumbers any joint projects.
G7 needs to make itself effective beyond coalescing against Russia. It needs to take responsibility for its enunciations and make its partnerships worthwhile. The G7’s time for efficacy is limited.
The writer is a former Ambassador to Germany, Indonesia & ASEAN, Ethiopia & the African Union. Views expressed are personal.
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