The Group of 20 major economies has been instrumental in coordinating the response to crises like the COVID pandemic. But top officials from the U.S. and several other member states skipped the G20 finance ministers’ meeting in South Africa this week, raising questions about the group's continued relevance in a splintered global environment.
The two-day meeting in Cape Town ended without a communique, with current G20 leader South Africa saying there was not sufficient consensus to issue one.
In his opening remarks at the event, South African President Cyril Ramaphosa referred to the fractured geopolitical climate and stressed the importance of international cooperation.
“At this time of global uncertainty and escalating tension, it is now more important than ever that the members of the G20 should work together,” Ramaphosa said. “The erosion of multilateralism presents a threat to global growth and stability.”
He said the G20 finance ministers meeting had to address major issues like climate change financing, ensuring debt sustainability for developing countries, and Africa's need to process its own critical minerals for inclusive growth.
But it appeared the world’s largest economies were not able to find common ground on a number of issues. South African Finance Minister Enoch Godongwana noted this wasn’t the first time.
“The issue of the communique and the absence of it is not something new,” Godongwana said. “To my knowledge, I mean, since the Russia-Ukraine war, it has been difficult to find a joint communique. Now, new differences have emerged on a number of other topics.”
Climate adaptation funding was one of the areas where there was a “difference of opinion,” he said.
The finance ministers meeting was beset with similar problems faced by last week's G20 foreign ministers meeting in Johannesburg, which laid bare the discord in current geopolitics.
U.S. Treasury Secretary Scott Bessent skipped the event amid a spat with host country South Africa, and after the U.S. criticized the themes around climate change and “solidarity, equality and sustainability.”
The finance chiefs of other large economies, including Japan, India and China also sat it out. However, all of them, including the U.S., sent representation at various levels.
Still, the absence of some top officials underscores global divisions sparked by Russia’s attack on Ukraine and the “America First” administration of U.S. President Donald Trump, said Professor Alex van den Heever of the University of Witwatersrand in Johannesburg.
“I think that this has caused a sort of a general review of how people see global issues,” van den Heever said, “with people becoming a lot more insular and not really looking at sort of global social solidarity in any way, shape or form – largely looking to look after their own situation.”
However, Britain’s chancellor of the exchequer, Rachel Reeves, who was in Cape Town for the meeting, added to Ramaphosa’s call for unity, posting on social media platform X, “Productive and successful collaboration with our international partners is front of mind, now more than ever.”
Asked about the issue of tariffs, Godongwana said there had been, “general agreement against protectionism” at the G20 meeting.
