The Group of 20, commonly referred to as the G-20, is a strategic coalition involving finance ministers and central bank governors from 19 of the world’s largest economies, inclusive of several developing nations, in addition to the European Union. Established in 1999, the G-20’s mission is to drive global economic growth, facilitate international trade, and oversee financial market regulations.
Although the G-20 is a forum rather than a legislative body, its consensus and decisions significantly shape national policies and foster global collaboration. The combined economies of the G-20 countries account for over 80% of the gross world product (GWP), 75% of global trade, and 60% of the world’s population. Following its inaugural summit in 2008, the G-20 was designated to replace the G-8 as the primary economic council of nations.
Key Highlights
- The G-20 stands as a preeminent forum for discussing global financial matters, with members from both major developed and developing economies.
- Despite not being a legislative body, the G-20’s discussions have substantial influence over financial policies within its member countries.
- Recent agenda items have included discussion on cryptocurrency, food security, and trade conflicts.
Mission of the G-20
The agenda and activities of the G-20 are orchestrated by its rotating Presidencies in collaboration with member nations. Initial discussions prioritized sustainable management of sovereign debt and overall global financial stability—these themes resonate continuously at G-20 summits that also discuss topics such as global economic growth, international trade, and regulatory practices for financial markets.
Presently, under Indonesia’s Presidency, the G-20 is concentrated on three synergistic action pillars: global health architecture, digital transformation, and sustainable energy transition. The most recent summit in Rome, held on October 30-31, 2021, covered issues including support for small and medium-sized enterprises (SMEs), advancing women-owned businesses, private sector’s role in combating climate change, and sustainable growth strategies.
Previously, the 2019 G-20 Osaka summit spotlighted global economy, trade and investment, innovation, environment and energy, employment, women’s empowerment, and wellness. The 2018 summit in Argentina underscored future employment, infrastructure for development, and sustainable food plans, with discussions on cryptocurrency regulations and the U.S.-China trade conflict.
G-20 vs. G-7: Distinct Yet Complementary
The G-20 includes all members of the Group of Seven (G-7)—a consortium encompassing the European Union and seven leading developed economies: France, Germany, Italy, Japan, the United States, the United Kingdom, and Canada. Formed in 1975, the G-7’s annual discussions engage on matters stretching from economic policy to geopolitical issues. While historically the G-7 focused mainly on finance, the G-20 has evolved to include broad political and economic matters post the 2008 global financial crisis.
The Controversial Rusian Stance in G-20
In 2014, amidst geopolitical tensions due to Russia’s incursions into Ukraine and subsequent annexation of Crimea, the G-7 suspended Russia’s membership—prompting Russia’s official departure from the G-8 in 2017. Conversely, despite protests to ban Russia from the G-20 over similar concerns, Russia remained a member owing to backing from BRIC nations (Brazil, India, China), underscoring G-20’s complex dynamics and differing international stances.
Membership Dynamics of the G-20
Alongside G-7 members, 12 additional countries compose the G-20: Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey. Guest nations, including Spain and representatives from the African Union and ASEAN, are invited for expanded dialogue. Key international organizations, such as the International Monetary Fund, the World Bank, the United Nations, the Financial Stability Board, and the World Trade Organization, also attend the summits, ensuring comprehensive global representation.
Regular leadership rotation in the
Related Terms: central bank, European Union, sovereign debt, cryptocurrency, G-7, BRIC nations, International Monetary Fund.
References
- G20. “About the G20”.
- The Brookings Institute. “Welcome to the New Era of G20 Global Leadership”, Page 1.
- G20. “G20 Presidency of Indonesia”.
- Italian Government Presidency of the Council of Ministers. “G20 Rome Summit - 30 October”.
- Ministry of Foreign Affairs of Japan. “G20 Osaka Leaders’ Declaration”.
- Ministry of Foreign Affairs and Worship. “Argentina Announces G20 Agenda Priorities”.
- G7. “What Is the G7?”
- European Commission. “International Issues”.
- Ministry of Foreign Affairs of Japan. “G20 Foreign Ministers’ Extraordinary Virtual Meeting”.
- Oxfam. “Turn the Tide: The G20 Must Act on Rising Inequality, Starting with Fairer Global Tax Reform”.
- Global Policy Journal. “Spain’s Relationship Status with the G20: It’s Complicated”.
