The G-20 (more formally, the Group of Twenty Finance Ministers and Central Bank Governors) is a group of finance ministers and central bank governors from 20 economies: 19 of the world's largest national economies, plus the European Union (EU). Collectively, the G-20 economies comprise 90% of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.[2]
 Areas in dark blue represent the member countries in the G-20; light blue represent members of the EU not individually represented. | |
| Abbreviation | G-20 |
|---|---|
| Formation | 1999 |
| Purpose | Bring together systemically important industrialized and developing economies to discuss key issues in the global economy.[1] |
| Membership |  Argentina  Australia  Brazil  Canada  China  European Union  France  Germany  India  Indonesia  Italy  Japan  Mexico  Russia  Saudi Arabia  South Africa  Republic of Korea  Turkey  United Kingdom  United States |
| Staff | none[1] |
| Website | http://www.g20.org/ |
The G-20 is a forum for cooperation and consultation on matters pertaining to the international financial system. It studies, reviews, and promotes discussion among key industrial and emerging market countries of policy issues pertaining to the promotion of international financial stability, and seeks to address issues that go beyond the responsibilities of any one organization.
Organization
The G-20 operates without a permanent secretariat or staff. The chair rotates between members annually, and is selected from a different regional grouping of countries each year. The chair is part of a revolving three-member management group of past, present and future chairs referred to as the Troika. The incumbent chair establishes a temporary secretariat for the duration of its term, which coordinates the group's work and organizes its meetings. The role of the Troika is to ensure continuity in the G-20's work and management across host years.
Membership criteria
The membership of the G-20 comprises:
- the finance ministers and central bank governors of the G7, 12 other key countries, and the European Union Presidency (if not a G7 member)
- the European Central Bank
- the Managing Director of the International Monetary Fund
- the Chairman of the IMFC
- the President of the World Bank
- the Chairman of the Development Committee
Membership does not reflect exactly the top 19 national economies of the world in any given year. The organization states:[1]
- In a forum such as the G-20, it is particularly important for the number of countries involved to be restricted and fixed to ensure the effectiveness and continuity of its activity. There are no formal criteria for G-20 membership and the composition of the group has remained unchanged since it was established. In view of the objectives of the G-20, it was considered important that countries and regions of systemic significance for the international financial system be included. Aspects such as geographical balance and population representation also played a major part.
Of the current top 19 economies by purchasing power parity [3] (IMF and/or World Bank ranking, 2007), Iran and Taiwan are notably absent and Spain and the Netherlands are included only as part of the EU. Saudi Arabia, Argentina, and South Africa are included while ranking in the range of 21-25. Poland (20 or 21) is excluded individually (included with EU), and Thailand is passed over although ranked one position above South Africa.
History
The G-20, which superseded the Group of 33, which had itself superseded the G22, was foreshadowed at the Cologne Summit of the G7 in June 1999, but was formally established at the G7 Finance Ministers' meeting on September 26, 1999. The inaugural meeting took place on December 15-16, 1999 in Berlin.
Since 2006
In 2006 the theme of the G-20 meeting was “Building and Sustaining Prosperity”. The issues discussed included domestic reforms to achieve “sustained growth”, global energy and resource commodity markets, ‘reform’ of the World Bank and IMF, and the impact of demographic changes due to an aging population.
Trevor A. Manuel, MP, Minister of Finance, Republic of South Africa, was the chairperson of the G-20 when South Africa hosted the Secretariat in 2007. Guido Mantega, Minister of Finance, Brazil, was the chairperson of the G-20 in 2008; Brazil proposed dialogue on competition in financial markets, clean energy and economic development and fiscal elements of growth and development. In a statement following a meeting of G7 finance ministers on October 11, 2008, U.S. President George W. Bush stated that the next meeting of the G-20 would be important in finding solutions to the economic crisis of 2008. An initiative by French President Nicolas Sarkozy and U.K. Prime Minister Gordon Brown led to a special meeting of the G-20, a G-20 Leaders Summit on Financial Markets and the World Economy.[4]
Past and future sites of G-20 Summits
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See also
References
- ^ a b c FAQ #8: What are the criteria for G-20 membership? from the official G-20 website
- ^ About the G-20 from the official G-20 website
- ^ Results by nominal exchange rate are different. See List of countries by GDP (nominal).
- ^ The G-20 Summit: What’s It All About?, from the Brookings Institute
- ^ The G-20 Leaders Summit on Financial Markets and the World Economy from the G-20 Information Centre at the University of Toronto
External links