Group of 20 (G-20)

G-20 Global Economics Financial Stability International Cooperation Emerging Markets Industrial Countries Economic Policy Trade
The Group of 20 (G-20) is an international forum for the governments and central bank governors from 19 countries and the European Union to discuss policy issues pertaining to the promotion of international financial stability.
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Group of 20 (G-20)

Definition

The Group of 20 (G-20) is a coalition of finance ministers and central bank governors from 19 of the world’s largest economies, both industrial and emerging, and the European Union. The G-20 was established in 1999 with the aim of promoting international financial stability, economic growth, and sustainable development. This group meets annually to discuss and coordinate on significant global economic issues.

History

The G-20 was founded in response to the financial crises of the late 1990s, recognizing the need to bring together the world’s major economies to foster a more inclusive international economic policy structure. Initial focus was on broader inclusion of rising economies alongside traditional industrial powerhouses to address critical issues affecting the global economy.

Members

The G-20 comprises the following members:

  1. Argentina
  2. Australia
  3. Brazil
  4. Canada
  5. China
  6. France
  7. Germany
  8. India
  9. Indonesia
  10. Italy
  11. Japan
  12. Mexico
  13. Russia
  14. Saudi Arabia
  15. South Africa
  16. South Korea
  17. Turkey
  18. United Kingdom
  19. United States
  20. European Union

Structure and Leadership

The G-20 operates without a permanent headquarters or secretariat. Instead, it has a rotational leadership known as the “troika” mechanism, which includes the past, present, and upcoming chairs, ensuring continuity and targeted focus on annual themes and discussion points. Each year, a different member country assumes the presidency and hosts the G-20 summit.

Function

The primary functions of the G-20 include:

  • Promoting international financial stability by coordinating economic policy among its members.
  • Addressing key issues such as climate change, sustainable development, and terrorism financing.
  • Facilitating discussions that lead to consensus on global economic and financial policy.

Examples of Recent G-20 Summits & Agendas

  • G-20 Riyadh Summit (2020): Focused on addressing the immediate and long-term impacts of the COVID-19 pandemic, promoting trade, and supporting the global economy.
  • G-20 Osaka Summit (2019): Addressed issues such as global trade tensions, economic inequalities, and climate change, emphasizing technological innovation and sustainability.

Frequently Asked Questions (FAQs)

Q: Why was the G-20 created?
A: The G-20 was created to involve the world’s largest economies in discussions regarding international economic policy, particularly after the financial crises in the late 1990s, to avoid future financial turmoil.

Q: How often does the G-20 meet?
A: The G-20 meets once a year at a summit attended by finance ministers and central bank governors, with additional meetings held as required, including for working groups and special sessions.

Q: What is the troika in the context of the G-20?
A: The troika consists of the current, past, and next G-20 presidents, working together to ensure continuity and execution of priorities across leadership terms.

Q: How does the G-20 differ from the G-7?
A: The G-20 includes both industrial and emerging-market countries, representing a broader range of economies than the G-7, which consists of only the world’s largest and most advanced economies.

  • G-7: A group of seven large advanced economies that meet to discuss issues of mutual interest, focusing primarily on economic policies.
  • IMF (International Monetary Fund): An international organization that aims to promote global economic stability and financial cooperation.
  • World Bank: An international financial institution providing loans and grants to the world’s poorest countries for development projects.

Online References

Suggested Books for Further Studies

  • The G20: Evolution, Interrelationships, Documentation by Peter I. Hajnal
  • G20 Governance for a Globalized World by John J. Kirton
  • The G20 and Global Economic Governance by Andrew F. Cooper and Ramesh Thakur

Fundamentals of Group of 20 (G-20): International Business Basics Quiz

### What was the primary motivation behind the creation of the G-20? - [x] To promote international financial stability - [ ] To impose strict trade agreements - [ ] To undermine smaller economies - [ ] To create a financial union among member nations > **Explanation:** The primary motivation behind the creation of the G-20 was to promote international financial stability by including both industrialized and emerging economies in economic policy coordination. ### Who comprises the "troika" in the G-20? - [ ] Only the current president - [ ] Representatives from non-member states - [x] The past, current, and next G-20 presidents - [ ] Leader of the largest member economy > **Explanation:** The "troika" consists of the past, current, and next G-20 presidents to ensure continuity and effective leadership. ### How frequently does the G-20 typically meet? - [x] Annually - [ ] Every six months - [ ] Every two years - [ ] Quarterly > **Explanation:** The G-20 typically meets once a year for a summit, with additional meetings as needed. ### Which entity is primarily responsible for organizing the G-20 summits? - [ ] The G-20 Secretariat - [ ] The United Nations - [x] The current president nation - [ ] The International Monetary Fund (IMF) > **Explanation:** The current president nation is primarily responsible for organizing the G-20 summits. ### What is a key difference between the G-20 and the G-7? - [x] The G-20 brings together both industrial and emerging market economies. - [ ] The G-20 focuses solely on technological advancements. - [ ] The G-7 has a rotating troika leadership system. - [ ] The G-7 includes a wider array of countries. > **Explanation:** The G-20 includes both industrial and emerging market economies, unlike the G-7 which consists of the world's largest advanced economies. ### What aspect is not a primary function of the G-20? - [ ] Promoting international financial stability - [ ] Addressing climate change - [ ] Facilitating trade agreements - [x] Conducting military collaborations > **Explanation:** Conducting military collaborations is not a primary function of the G-20, which focuses on financial and economic issues. ### How does the G-20 contribute to resolving global economic issues? - [x] By coordinating economic policy among its members - [ ] Through military intervention - [ ] By creating common currencies - [ ] By enacting laws enforceable by all member states > **Explanation:** The G-20 contributes to resolving global economic issues by coordinating economic policy among its members. ### Why is the G-20 considered more inclusive compared to other economic forums? - [ ] It includes every country in the world. - [ ] It has a permanent headquarters. - [x] It represents both advanced and emerging economies. - [ ] It imposes no membership criteria. > **Explanation:** The G-20 is more inclusive because it includes both advanced and emerging economies in its membership. ### Which of the following issues has been recently discussed in G-20 summits? - [ ] Only regional trade issues - [x] COVID-19 pandemic impacts - [ ] Space exploration - [ ] Nationalization of industries > **Explanation:** Recent G-20 summits have discussed the impacts of the COVID-19 pandemic among other global economic issues. ### What percentage of the world's GDP is represented by G-20 member countries? - [x] 90% - [ ] 50% - [ ] 25% - [ ] 75% > **Explanation:** G-20 member countries represent around 90% of the world's GDP.

Thank you for exploring the intricate workings of the G-20 and testing your knowledge with these quiz questions. Continue to delve deeper into the above references and suggested readings for a more profound understanding of international economic policy coordination.

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