both an opportunity and a major test for the g20 which represents 85 per cent of world gdp and 75 per cent of global trade. following the east asian financial crisis of 1997, the g20 was founded in 1999 as a forum for the finance ministers and central bank governors to discuss global issues and policy options. after the global financial crisis of 2008, g20 was upgraded to the level of heads of states / governments in 2009. in an interconnected world, national policies alone may not be fully effective when the nature of the shocks is global and persistent. 1 / 6 bis - central bankers'speeches 6. post covid, the world economy was recovering gradually on the back of large policy stimulus and rising pace of vaccination when the war in ukraine led to sharp increases in global food, energy and commodity prices. it also triggered renewed supply chain disruptions. geopolitics has now been taken over by geoeconomics. according to the imf1, the global economy is now experiencing a process of geo - economic fragmentation, operating through five key channels – trade, technology, capital flows, labour mobility and global governance. there are rising restrictions on trade and diffusion of technology, barriers to labour migration, reduced capital flows and increased uncertainty about global public goods. the interlinkage between geopolitics and economic prospects of nations has become stronger, with each influencing the other. there is now growing trend of friend - shoring and onshoring. the focus is now on ensuring food and energy security and on securing strategic minerals – lithium, rare earths, copper, zinc, chromium, graphite, etc. which are required for producing batteries, solar panels and wind turbines. 7. actually, the backlash against globalisation had started even before the pandemic struck, as globalisation created both winners and losers. the international order could not provide cooperative solutions to make the process win - win for all. this indeed is the biggest challenge for g20 as a multilateral group. globalisation must produce better and more equitable outcomes for all, including the global south. 8. of the multiple risks facing the world community, the surge in inflation has posed a complex monetary policy dilemma in every economy between raising interest rates enough to tame inflation, and at the same time minimising the growth sacrifice to avoid a hard landing. the aggressive monetary policy tightening by systemic central banks since early 2022 and the consequent appreciation of the us dollar have led to several economies,

has once again emerged as the fastest growing major economy in the world. international confidence on india's capacity to contribute constructively to reshape the global economic order is rising. the risk of a hard landing has dissipated world over, even as the pace of disinflation remains less than desirable. before the cascading effects of geo - economic fragmentation further dampen the global outlook, rebuilding trust through cooperation and recommitting to multilateral frameworks for addressing critical global challenges has become essential. every crisis can have a solution when powerful minds come together. as swami vivekananda had once said " the powers of the mind are like rays of light dissipated ; when they are concentrated, they illuminate " 5. thank you. 1 " geo - economic fragmentation and the future of multilateralism, " imf staff discussion note 2023 / 001. 2 imf, world economic outlook update – january 2023 3 the climate change performance index ( ccpi ), published annually since 2005, is an independent monitoring tool for tracking the climate protection performance of 59 countries and the eu, which together account for 92 per cent of the global greenhouse gas emissions. it is published by the germanwatch, the new climate institute, and the climate action network. 5 / 6 bis - central bankers'speeches 4 coalition for disaster resilient infrastructure ( cdri ) is a multi - stakeholder global partnership to support creation of new and to develop the resilience of existing infrastructure systems to climate and disaster risks to foster sustainable development. india is a founding member, and the organisation is headquartered at new delhi. 5 the complete works of swami vivekananda, volume 1, chapter i, introductory. https : / / advaitaashrama. org / cw / content. php 6 / 6 bis - central bankers'speeches