G20 in the context of Argentina

By Aakarsh Kumar Bajpai and Jayendra Singh

Abstract

Argentina is a member of the G20. The presidency has offered Argentina to put forward its policy

driven initiatives and work towards creating a better socio-economic base through international

collaboration. This paper examines Argentina's relations with other G20 countries and describes

trends, trends and insights into the commitments of these meetings. The analysis underscores the

importance of international cooperation on compliance rates. The emphasis on the SDGs and the

2030 Agenda was a key portion of the goals, including economic reforms and better taxation

policies etc. However, some commitments to energy transition and other compliance issues require

implementation and performance management reforms, which indicates the need for sustained

efforts and political adjustments.

Country Fact Sheet:

Overview:

Argentina is a South American country known for its diverse landscapes, rich cultural heritage,

and agricultural prowess. Its economy is characterized by its agricultural strength, but it also faces

challenges related to debt, inflation, and political stability. Leveraging its abundant natural

resources and addressing economic imbalances could pave the way for sustainable growth and
development in the future. As of the latest available data, here are some key economic development

indicators that provide insight into the country's economic status.1

Economy:

Gross Domestic Product (Current US$) $632.77 billion USD

GDP Growth Rate 5.2%

GDP Per Capita (Current US$) Around $8,600 USD (2022)

Unemployment Rate (2021) 6.5%

Labor Force Participation Rate (2021) 60.4%

Main Industries Agriculture, manufacturing, services, mining,

and tourism

Trade and Exports:

Major Exports: Maize, oil cake and other solid residues of soya-bean Soybeans, Crude soya-bean

oil, diesel-powered trucks with a GVW not exceeding, Spelt, common wheat and meslin.

Major Export Partners (World Bank )

Market Trade (US$ Mil) Partner Share (%)

Brazil 11,767 15.10

China 6,156 7.90

1
World Bank Open Data. (2017). World Bank Open Data.

https://data.worldbank.org/country/AR
 United States 4,995 6.41

India 4,293 5.51

Chile 4,205 5.40

Trade Balance (2021): Negative, with imports exceeding exports

Inflation and Monetary Policy:

Inflation Rate (2022): Approximately 69.7%

Currency: Argentine Peso (ARS)

Central Bank: Banco Central de la República Argentina

Investment and Development:

Foreign Direct Investment (2022): Approximately $15.09 billion USD

Infrastructure: Ongoing efforts to improve transportation, energy, and communication systems

Agriculture and Natural Resources:

Agricultural Exports: A leading global producer of soybeans, corn, and beef

Land Use: Large agricultural sector, with vast fertile plains (pampas) supporting agriculture and

livestock

Challenges:

Argentina faces various economic challenges, including:

Debt: High external debt levels affecting fiscal stability

Political Factors: Policy uncertainty and fluctuations affecting investor confidence

Income Inequality: Disparities in income distribution and social welfare

Opportunities:

Natural Resources: Rich in minerals, agricultural resources, and energy potential

Tourism: Diverse landscapes, cultural heritage, and attractions for international visitors

Agricultural Exports: Global demand for Argentina's agricultural products

Argentina’s Performance in G20

G20 Commitments Compliance, 2008-2021:

Compliance Chart (%)

Argentina Average
This above chart presents a comprehensive analysis of the compliance report for G20 summits

held between 2008 and 2021 (G20 Research Group University of Toronto, Center for International

Institutions Research Russian Presidential Academy of National Economy and Public

Administration, 2022). The compliance percentages of Argentina and the average compliance

percentages of other nations are examined to identify trends, patterns, and insights regarding the

commitments made during these meetings.

Overall Compliance Trends:

Argentina's Performance: The compliance percentages of Argentina shows notable fluctuations

over the years, ranging from as low as 20% (London 2009) to as high as 91% (Hamburg 2017).

This suggests that Argentina's commitment to implementation has been inconsistent across

different G20 summits.

Average Compliance of Other Nations: The average compliance percentages of other nations

tend to be relatively more stable compared to Argentina's. The average compliance percentage

ranges from 62% (London 2009) to 87% (Hamburg 2017), indicating a generally higher adherence

to commitments among other G20 countries.

Yearly Trends and Patterns:

Early Years (2008-2010): Argentina's compliance percentages during the initial years were

mixed, with significant variations. The London 2009 summit saw both Argentina and the average
compliance drop notably, suggesting broader challenges in fulfilling commitments during the

global financial crisis.

Stabilization (2011-2013): Compliance percentages for Argentina and the average remained

relatively consistent during this period. The St. Petersburg 2013 summit marked a notable increase

in Argentina's compliance, possibly reflecting an improvement in policy implementation.

Inconsistent Performance (2014-2016): The compliance percentages continued to vary,

suggesting that Argentina's commitment implementation was influenced by factors beyond

economic conditions. Antalya 2015 witnessed a higher-than-average compliance for Argentina,

potentially driven by specific policy priorities.

Improvement and Peaking (2017-2018): Argentina's compliance reached its peak at Hamburg

2017, surpassing the average compliance of other nations. This period indicated Argentina's

potential to effectively implement commitments, possibly due to policy focus or international

collaboration.

Moderation (2019-2021): Compliance percentages for both Argentina and the average

demonstrated moderation in later years. While Argentina's compliance remained close to the

average, Osaka 2019 and Riyadh 2020 highlighted the challenge of maintaining high compliance

during global disruptions.

Factors Influencing Compliance:

Global Context: Compliance percentages during the financial crisis years (2009) were lower,

suggesting that economic and political conditions significantly impact commitment fulfillment.
Policy Focus: Peaks in compliance (Hamburg 2017) may be linked to focused policy efforts or

prioritization of specific commitments. Also, in the Buenos Aires session of 2018 where Argentina

to the residency of the G20 group Argentina showed a high level of compliance as compared to

the average compliance by other countries.

International Cooperation: Higher compliance during certain years could be influenced by

collaborative efforts among G20 nations to address common challenges.

The compliance report for G20 summits from 2008 to 2021 reveals dynamic trends in Argentina's

commitment implementation and the average compliance of other nations. While Argentina's

performance has experienced fluctuations, there have been instances of notable improvement. The

analysis underscores the influence of global contexts, policy priorities, and international

cooperation on compliance percentages. As Argentina and other nations continue to address global

issues, understanding and addressing these trends can contribute to more effective commitment

implementation in the future.

Priorities set in the G20 meeting during Argentina’s presidency:

Sustainable Development and Climate Change: The G20 expressed their commitment to

leading the transformation towards sustainable development and supporting the 2030 Agenda.

They emphasized the importance of comprehensive adaptation strategies, investment in resilient

infrastructure, and alignment of international finance flows to address climate change.

“[We recognize the importance of comprehensive adaptation strategies, including investment in

infrastructure that is resilient to extreme weather events and disasters.] In this sense, we support

actions and cooperation in developing countries, especially those that are particularly vulnerable,
including small island states such as those in the Caribbean.” (Buenos Aires Leaders’ Declaration,

2018)

“Signatories to the Paris Agreement, who have also joined the Hamburg Action Plan], commit to

its full implementation, reflecting common but differentiated responsibilities and respective

capabilities, in light of different national circumstances.” (G20 Buenos Aires Action Plan, 2018)

Global Economic Growth: The G20 welcomed the strong global economic growth but

acknowledged that it has been less synchronized between countries. They also recognized key

risks, including financial vulnerabilities and geopolitical concerns, and reaffirmed their

commitment to using all policy tools to achieve strong, sustainable, balanced, and inclusive

growth.

“We support the free flow of information, ideas and knowledge, while respecting applicable legal

frameworks, and working to build consumer trust, privacy, data protection and intellectual

property rights protection.” (Buenos Aires Leaders’ Declaration, 2018)

“We reaffirm our commitment to further strengthening the global financial safety net with a strong,

quota-based, and adequately resourced IMF at its centre.” (G20 Buenos Aires Action Plan, 2018)

Transformative Technologies: The G20 acknowledged the economic opportunities brought by

transformative technologies and emphasized the need to harness these opportunities for inclusive

growth and development.

“[To maximize the benefits of digitalization and emerging technologies for innovative growth and

productivity], we will promote measures to … improve … digital infrastructure.” (G20 Buenos

Aires Action Plan,2018)

can be realized while risks are mitigated.” (G20 Buenos Aires Action Plan, 2018)

Taxation and Trade: The G20 highlighted the importance of addressing tax challenges arising

from the digitalization of the economy and supporting a consensus-based solution. They also

recognized the contribution of international trade and investment to growth and development and

expressed support for necessary reforms of the World Trade Organization (WTO).

“We will continue our work for a globally fair, sustainable, and modern international tax system

based, in particular on tax treaties and transfer pricing rules, and welcome international

cooperation to advance pro-growth tax policies.” (G20 Buenos Aires Action Plan, 2018)

“We endorse the Menu of Policy Options for the Future of Work which we will draw on,

considering individual country circumstances, to harness technology to strengthen growth and

productivity.” (G20 Buenos Aires Action Plan, 2018)

Did the G20 presidency affect Argentina’s socio-economic conditions?

According to the council on foreign relations, Argentina’s biggest challenges since its post war era

has been related to economic mismanagement and political dysfunction (Roy, 2022). While a

period of mere one year is not enough to solve such deeply entrenched issues, Argentina’s

presidency helped the nation streamline the process and set priorities towards a better future. The

country officials put the SDG 2030 agenda at the heart of the planning process, especially with

respect to finding specific issues and working towards collective solutions to them. There were

separate meeting from various working groups including the Sherpa Track and Finance Track, a

brief account of their work is given below.

This working group comprises representatives such as the energy minister and promoted energy

efficient policy options such as Behavior Change Initiatives, included in Argentina’s Energy

Efficiency Leading Programme. They also encouraged investment and financing in renewable

energy to reduce potential barriers and improve risk mitigation services. The most important

however was the energy access issue, which Argentina meant to do through international financing

The “Energy Access and Affordability Voluntary Action Plan for Latin America and the

Caribbean” put forward by Argentina’s G20 Presidency highlights the need to tackle energy

service cost and affordability issues, in addition to access challenges (G20 Buenos Aires Update,

2018).

This communique, however, did not lead to an expected outcome as the nation persists in giving

coal, oil and gas subsidies despite their longstanding pledge. Moreover, these policy decisions

bring about emissions which are caused because of an extensive focus on consumption, than

production, which does not help the overall emissions since energy production keeps rising.

(Chino, 2018) Focusing on environmentally sound policies is a must for Argentina because they

have been suffering from the impacts of climate change severely, owing to a population which is

highly vulnerable and lives in poverty, therefore, these commitments and targets must be taken

into account while engaging with other countries within the G20.

Conclusion

Argentina's relationship with the G20 countries showcased varying degrees of commitment and

implementation, especially reflecting fluctuations in compliance rates. Although Argentina

grappled, and continues to deal with socio-economic problems emerging from its turbulent post-

war history, its participation during its presidency offered it opportunities to move towards a better
future and address these issues through collaborative action at an international level, and through

targeted policy initiatives. The analysis underscored the influence of global circumstances, policy

priorities, and international teamwork on compliance rates.

Argentina’s G20 presidency focused on critical and crucial issues pertaining to the SDG 2030

Agenda, sustainable and fair work environment, and transformative economic policies, supporting

proper use of taxation, trade, and development which benefits the people. Although the presidency

didn't provide immediate solutions to Argentina's deeply entrenched economic and political issues,

it served as a platform to establish priorities and work collectively toward resolutions, notably by

championing the SDG 2030 agenda.

Nonetheless, certain commitments, with respect to energy transition, and other compliance issues

needed reform in terms of implementation and performance management, indicating the need for

sustained efforts and policy adjustments. Overall, Argentina's G20 presidency represented a step

forward in the country's pursuit of socio-economic stability and international cooperation, laying

the foundation for future progress.

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Aires-Update.pdf

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