Political Science · International Relations
UGC NET December 2023 Political Science
Passage
The Group of Twenty, or G20, has of late emerged as a premier forum for international cooperation. Its significance arises from the fact that its members are the world's advanced and emerging economies. The G20 members together represent about 85% of global GDP, 80% of global trade and two-thirds of the world's population. The G20 originated to overcome the financial crisis that occurred in the 1990s in the emerging economies of Asia. The organization is broadly representative and inclusive, as the G20 chair has been made rotational annually and a member from a different regional grouping of countries is elected to its presidency. Since its beginning, India has actively participated in the G20 process and is a major stakeholder interested in the stability of the world economy. India's support during the Seoul summit led to development being included as an agenda item, and the Seoul Development Consensus emerged. India's successful organization of the G20 summit in New Delhi has again ignited hopes for a framework for strong, sustainable and balanced growth and an alternative world order.
Based on the passage, which of the following is the reason for the formation of the G20?
AA world financial crisis
BThe Asian financial crisis ✓ Correct
CAn African financial crisis
DA European financial crisis
Correct answer: (B) The Asian financial crisis — The reason for the formation of the G20 was the Asian financial crisis.
Explanation
★The reason for the formation of the G20 was the Asian financial crisis.
★The passage says the G20 arose to overcome a 1990s crisis in Asia.
★That crisis struck the emerging economies of Asia.
★The new forum was meant to steady the world economy.
★It brought together advanced and emerging economies.
★So the trigger was the Asian financial crisis.
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