The
Group of Twenty Finance Ministers and Central Bank Governors — known as the
G-20 — is a group of
finance ministers and
central bank governors from 20 economies: 19 countries, plus the
European Union (EU). It has also met three times at heads-of-government level:
Washington, D.C. in November 2008,
London in April 2009 and
Pittsburgh in September 2009. The next meeting is planned to be set in
Toronto in
July 2010.
Collectively, the G-20 economies comprise 85% of global
gross national product, 80% of
world trade (including EU intra-trade) and two-thirds of the
world population.
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.
With the G-20 growing in stature since the
2008 Washington summit, its leaders announced on September 25, 2009 that the group will replace the
G8 as the main economic council of wealthy nations.
Organization
The G-20 operates without a permanent secretariat or staff. The chair rotates annually among the members and is selected from a different regional grouping of countries. 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.
Member countries and organizations
In 2009, there are 20 members of the G-20. These include the finance ministers and central bank governors of 19 countries:
[ from the official G-20 website]The 20th member is the
European Union, which is represented by the
rotating Council presidency and the
European Central Bank.
In addition to these 20 members, the following forums and institutions, as represented by their respective
chief executive officers, participate in meetings of the G-20:
- International Monetary and Financial Committee
- Development Committee of the IMF and World Bank
Membership
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 Chairman of the Development Committee
Membership does not reflect exactly the 19 largest national economies of the world in any given year. The organization states:
[ from the official G-20 website]All 19 member nations are among the
top 32 economies as measured in GDP at nominal prices in a list published by the
International Monetary Fund (IMF) for 2008. Not represented by membership in the G-20 are
Switzerland (19),
Norway (25),
Taiwan (26),
Iran (28) and
Venezuela (31) even though they rank higher than some members.
Spain (10),
Netherlands (16),
Belgium (20),
Poland (21),
Sweden (22),
Austria (24),
Greece (27) and
Denmark (29) are included only as part of the EU, and not independently. When the countries' GDP is measured at
purchasing power parity (PPP) rates, all 19 members are among the top 24 in the world in 2008, according to the IMF.
Iran (17),
Taiwan (19) and
Thailand (23) are not G-20 members, while
Spain (12),
Netherlands (19) and
Poland (20) are only included in the EU slot. However, in a list of average GDP, calculated for the years since the group's creation (1999–2008) at both nominal and PPP rates, only
Spain,
Netherlands,
Taiwan, and
Poland appear above any G-20 member in both lists simultaneously.
It is often argued that the G20, although it provides broader representation than the
G8, is not entitled to make decisions that affect the whole world, because its member states are selected arbitrarily. The G20 does not have a charter and its debates are not public, making it an "undemocratic institution." Critics propose an alternative such as an
Economic Security Council within the
United Nations, where members should be elected by the
General Assembly based on their importance in the world economy and the contribution they are willing to provide to world economic development.
History
thumb|250px|[[2008 G-20 Washington summit|G-20 Leaders Summit on Financial Markets and the World Economy in
Washington, D.C. on November 15, 2008.]]
The G-20, which superseded the
G33, 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. In 2008
Spain and
The Netherlands were included by French invitation for the
G-20 Leaders Summit on Financial Markets and the World Economy and then were admitted as members de facto by the
UK.
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,
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, US President
George W. Bush stated that the next meeting of the G-20 would be important in finding solutions to the (then called)
economic crisis of 2008. An initiative by French President
Nicolas Sarkozy and British 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, on November 15, 2008. G20 leaders met again in
London on April 2, 2009. Another G20 summit was held September 24–25, 2009 in
Pittsburgh, Pennsylvania.
G-20 Summits
thumb|right|250px|Leaders of the G-20 countries and others present at the [[2009 G-20 London Summit|London Summit in
London on 2nd April 2009.]]
The G-20 Summit was created as a response both to the
financial crisis of 2007–2009 and to a growing recognition that key emerging countries were not adequately included in the core of global economic discussion and governance. The G-20 Summit of
head of states replaced the prior G-20 Meetings of Finance Ministers and Central Bank Governors.
Prior G-20 Meetings of Finance Ministers and Central Bank Governors:
Public Reaction
Since 1999, many of the G-20 meetings have been protested against. While most protests have started out peacefully, many have turned violent with numerous people being injured and property damage in the local areas. The exact reasons for each protest can change from meeting to meeting, and even with multiple protests at the same meetings. However, strong feelings and disapproval from protesters has not changed. As evident by the fact that these protests have been ongoing since 1999, and continue to end violently. Additional news about protests of specific meetings can be found on the pages for those meetings under the See Also section.
See also
