With reference to the `G20 Common Framework`, consider the following statements : 1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. Which of the stateme

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Q: 4 (IAS/2022)
With reference to the 'G20 Common Framework', consider the following statements :
1. It is an initiative endorsed by the G20 together with the Paris Club.
2. It is an initiative to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,326,299,127,127,326,45

keywords: 

{'g20 common framework': [0, 0, 0, 1], 'g20': [0, 0, 0, 3], 'unsustainable debt': [0, 0, 0, 1], 'low income countries': [0, 0, 0, 1], 'initiative': [2, 0, 1, 23], 'paris club': [0, 0, 0, 1]}

The G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (DSSI) is an initiative endorsed by the G20 together with the Paris Club. It is aimed at providing debt relief to low-income countries that are facing unsustainable debt due to the COVID-19 pandemic and other exogenous shocks.

Therefore, the correct answer is: Both statements 1 and 2 are correct.


Preparing for Future Exams: Learning from the Analysis of Past Questions

Topics to study:

  • G20 organization and its objectives
  • Paris Club and its role in international finance
  • Debt sustainability and its measurement
  • Financial assistance and aid programs for Low Income Countries (LICs)
  • International debt restructuring mechanisms

Sources:

  • G20 official website and publications
  • Paris Club official website and publications
  • NCERT Economics textbooks (Class 11 and 12)
  • Reference books: "International Economics" by Salvatore, "International Finance" by Sharan, "World Economic Outlook" by IMF

Related concepts:

  • Multilateralism in international relations
  • Debt traps and their implications
  • Foreign aid and its effectiveness
  • Financial globalization and its challenges
  • Sustainable Development Goals (SDGs) and their progress

It is important to have a strong understanding of international finance and economics to answer questions related to G20 and its initiatives. The NCERT textbooks provide a good foundation, while reference books and online resources can help in-depth understanding. Regular reading of financial news and updates can also be helpful in staying updated on current events related to the topic.