[Opinion] ‘Back to basics’ future puts G20 at risk

After this weekend’s first Group of 20 (G20) leaders’ summit to be hosted on the African continent, the annual gathering is set to change, reverting to its original purpose.

The 2025 Johannesburg summit has faced criticism for its bloated agenda and steering away from its task of focusing solely on economic and financial issues. The social justice elements that have been introduced are set to be scrapped by the US as it assumes the G20 presidency after SA.

The G20 is an informal entity established after the 1997 Asian financial crisis, in response to the G8 leaders (now G7 after Russia’s suspension) recognising that emerging economies were not adequately represented. The G20 held its inaugural finance ministers’ and central bank governors’ meeting on December 15-16 1999 in Berlin; SA was represented by then finance minister Trevor Manuel and Reserve Bank governor Tito Mboweni.

The communiqué declared: “The G20 was established to provide a new mechanism for informal dialogue in the framework of the Bretton Woods institutional system, to broaden the discussions on key economic and financial policy issues among systemically significant economies and promote co-operation to achieve stable and sustainable world economic growth that benefits all.”

The G20 finance ministers and central bank governors’ forum was the first component, preceding the leaders’ summits and running alongside them. Created by G8 leaders on the recommendation of G7 finance ministers, its initial objective focused on crisis prevention, better financial-sector supervision, improved debt-management policies and the adoption of internationally recognised standards and codes.

SA held the G20 presidency for the first time in 2007 under the theme “Sharing — Influence, Responsibility and Knowledge.” The finance ministers’ and central bank governors’ meeting in Kleinmond, Western Cape, released a communiqué months before the global financial crisis stating that: “The recent financial market disturbances have highlighted the importance of sound macroeconomic and financial policies and continued vigilance … recent events have emphasised the need for greater effectiveness of financial supervision and the management of financial risks as well as to increase transparency among financial intermediaries.”

Anticipating and mitigating crises was a common agenda item, and the 2007 communiqué referenced the unfolding financial market turbulence triggered by the US subprime mortgage collapse, stressing stronger oversight and risk management.

The 2008 financial crisis spurred the creation of the G20 leaders’ summit. Then-US president George W Bush convened the first leaders’ summit in Washington, in November 2008. The G8 realised it lacked sufficient influence to stabilise such a large-scale crisis, mirroring the earlier rationale for the ministerial forum.

The 2010 Seoul summit added “development” to the agenda, beginning the expansion beyond a strict economic and financial focus to include terrorism financing, demographic shifts, trade, financial crime, Bretton Woods reform and commodity market volatility. Thereafter, ministers from other departments held their own meetings, and the G20 was no longer exclusive to finance ministers, central bank governors and heads of state.

The 2025 Johannesburg summit concludes the first full cycle of summits since 2008, with all G20 members having hosted. SA, under the theme “Solidarity, Equality, Sustainability,” focused on debt relief, climate finance and inclusive growth.

US President Donald Trump has announced that the 2026 summit will be held in Miami. US treasury secretary Scott Bessent has described the G20 as bloated and pledged to “whittle it down to basics,” retaining only the leaders’ summit and the finance track, while scrapping engagement groups and task forces. “The G20 had basically become the G100 this past year, so it will be a concentrated group in Miami,” Bessent said.

Trump’s “America First” agenda clashes with SA’s priorities. US secretary of state Marco Rubio criticised the current G20 theme for promoting “DEI [diversity, equity and inclusion] and climate change” and refused to attend meetings in SA, stating that his role is to “advance the US’s national interests, not waste taxpayer money or coddle anti-Americanism”. The Miami summit will thus focus narrowly on finance-related issues, shifting away from social justice priorities.

At the 2024 Rio summit, leaders tasked sherpas with evaluating the first full cycle and providing recommendations for the second cycle. The 2025 Johannesburg summit will produce the G20@20 Review outcome, which the US can use to formalise its back-to-basics model for 2026.

As of next year, the G20 will transform into an entirely different platform from what it has been for at least the past decade; away from development-oriented agendas and back to its original objective of global financial stability.

Although the boycott by the US speaks to the diminishing relevance of the multilateral platform, the true effect will not be from the US’s exclusion in 2025, but from the priorities and values it spotlights in 2026.

For SA and other developing economies, the US shift risks diminishing their influence on global governance, debt restructuring, climate financing and trade policy. As the G7 and G20 declarations carry no legal obligations, the Trump administration can disregard Johannesburg outcomes without challenge from other members.

Article originally appeared here.