The G-20 is the G-7 plus developing nations such as Brazil, China, India and Russia. The G-20's members represent two-thirds
of the world's people and 85 percent of its economy. Since 2007, the media
has covered each G-20 summit. That recognizes the members' role as significant
drivers of the world economy.
The G-20's primary mandate is to
prevent future international financial crises. It seeks to shape the global
economic agenda.
It lends the perspective of Asian
and Latin American growing economies. That "broadens the scope of
international economic and financial cooperation." (Source: "The Group of Twenty: A History," G-20 Study
Group, 2007.)
The finance ministers and central
bank governors of the G-20 countries meet twice a year. They
meet at the same time as the International Monetary Fund and the World Bank. (Source: "G-20 Information Centre,"
G-20.)
In 1999, these ministers and
governors created the G-20. They needed dialogue between developing and
developed countries. They were responding to the 2007 Asian currency crisis. The meetings started
as an informal get-together of finance ministers and central bankers.
2017 Summit
Meeting
July 7-8, 2017: Hamburg,
Germany. The meeting focused on climate change and global trade. It made
little progress. U.S. President Donald Trump opposed the
views of the other 19 countries.
Trump had pulled out of the
Paris Climate Agreement. The other G-20 members will hold a follow-up climate
summit in December to move forward. Trump also threatened to impose trade
restrictions on steel. That could start a trade war. He said there is a supply
glut. The G-20 agreed to share information about steel production.
It will publish a formal report
by November. (Source: "Trump Leaves Leaders Fearing the
Future as G-20 Summit Closes," The Washington Post, July 8,
2017.)
The G-20 agreed to eliminate safe
havens for terrorism financing. It will ask the private sector to help.
It will address conflicts in North Korea, Syria and Ukraine. (Source:
"G-20 Vows Crackdown on Safe Havens, Fight Terrorism Online Too,"
NDTV, July 8, 2017.)
On July 7, and Russian President Vladimir Putin privately
met for two hours. When Trump asked about Russia's meddling in the 2016
presidential election, Putin denied it. They agreed to a limited cease-fire in
Syria. (Source: "Trump Presses Putin on Russian
Meddling in U.S. Election," The New York Times, July 7, 2017.)
Some protesters turned to violence
during the first day of meetings. It was expected that 4,000 delegates and
3,000 members of the media would attend. (Sources: "Hamburg: G-20 Protesters Set Street
Fires, Loot Stores," CNN, July 7, 2017.
Previous
Summit Meetings
September 4-5, 2016, Hangzhou,
China. Both the United States and China agreed to ratify the Paris climate change agreement. They are the two
biggest emitters of greenhouse gases. Russia and the United States did not
come to an agreement on ending the Syrian war.
China complained that other
countries should allow more free trade. But China has become more protectionist
itself. (Source: "G-20 a Success for China, But Hard
Issues Kicked Down the Road," Reuters, September 6, 2016.)
November 15-16, 2015, Antalya,
Turkey. The meeting focused on responding to the terrorist attacks in
Paris. The members agreed to tighten border surveillance against
threats. At the same time, they would admit refugees who were
escaping the war against the Islamic State group. The United States agreed
to share more intelligence with France and other members. It wouldn't send in
ground troops. But it would support Syrian and Iraqi forces fighting the
Islamic State group. They outlined further steps to cut off financing for the
Islamic State group. (Source: "G-20 Vows More Intelligence Sharing,"
Reuters, November 16, 2015.)
November 15 -16, 2014, Brisbane,
Queensland, Australia. The meeting condemned Russia's attack on Ukraine. All members promised
to work together to increase global GDP growth to 2.1 percent by 2018. That
would add $2 trillion to global economies. The United States and Europe
pressured the group to take strong action on climate change. That was not
on the official agenda. The leaders vowed to do all they could to combat Ebola
in West Africa. President Obama met with the leaders of Japan and Australia.
They agreed to work toward the peaceful resolution of maritime disputes in the
South China Sea. (Source: "G-20 summit: Leaders Pledge to Grow their Economies by 2.1
Percent," BBC, November 16, 2014.)
September 5-6, 2013, St. Petersburg,
Russia. Unofficially, the meeting focused on a response to Syria's chemical
weapons attack. President Obama sought support for a U.S. strike, while others
argued for economic sanctions. Russia supports the Syrian government with arms
and trade. China is concerned about an increase in oil prices. France, Turkey
and Saudi Arabia support an air strike. Officially, the leaders focused on
spurring global economic growth. The BRIC countries sought G-20 action to
reinvigorate their economies. They were pummeled by a withdrawal of foreign direct investment. (Source: "G-20 Summit," USA
Today.)
June 18-19, 2012, Los Cabos,
Mexico. The summit focused on the eurozone debt crisis. The G-20 leaders pressured
German Chancellor Angela Merkel to work with other European Union leaders. They wanted a more
sustainable Grand Plan to resolve the Greece debt crisis. Germany wouldn't bail out Greece
without austerity measures. That's because German
taxpayers ultimately face higher costs to fund the bailout. Germany itself is
already highly indebted. Germany pushed for a fiscal union to support the EU's
monetary union. That meant EU members would give up political control of their
budgets to an EU-wide approval process. This was necessary before she would
support Euro-wide bonds. (Source: "G-20 to Press Europe for Lasting
Crisis Fix," Reuters, June 18, 2012.)
November 2-4, 2011, Cannes.
France. The summit addressed the Greek debt crisis. Members agreed on plans
to create jobs. (Source: "EU Satisfied with
Achievements of G-20 Summit," Europa News.)
November 11-12, 2010, Seoul, South
Korea. In advance of the G-20 meeting, Finance Ministers pledged to
stop the currency wars. They occurred primarily
between China and the United States. These wars
could create global inflation in food, oil prices and other commodities.
U.S.Treasury Secretary Tim Geithner pledged the United States would not flood
the market with Treasurys. That would have driven down the value of the dollar.
Emerging market countries agreed to let the forex market determine their
currency values. That means they would let them rise, if necessary. This
drove the dollar down and the stock market up. Forex traders had hoped for a
more solid pledge by the United States and China to keep their
currencies strong. Instead, the Federal Reserve will buy more
Treasurys. That will keep interest rates and the dollar low.
Traders sold dollars, driving its value down. In response, the Dow rose
one percent. A falling dollar value makes U.S. stocks cheaper to foreigners.
G-20 members agreed to transfer 6 percent of voting power in the IMF to
emerging market countries. That's further shifted the balance of power away
from the G-7 countries. (Source: "G-20 Has to Show Compromise FX Pact
Packs Meaning," Reuters, October 25, 2017.)
June 26-27, 2010, Toronto, Canada. Leaders agreed to cut their budget deficits in half by 2013. They
promised to eliminate deficits altogether three years later.
April 1-2, 2009, London, United Kingdom. G-20 leaders pledged $1
trillion to the IMF and World Bank to help emerging market countries ward off
the effects of the recession. They pledged $250 billion in trade
finance. They also agreed to develop new financial regulations,
create a supervisory body, and crack down on hedge funds. As a result, the Dow rose over
240 points, rising above 8,000 for the first time in two months. (Source: AP,
"G-20 to Give $1 Trillion to IMF," World Bank, April 2, 2009)
September 24-25, 2009, Pittsburgh,
United States. Leaders established a new Financial Stability Board. It
would establish standard financial regulations for all G-20
countries. The Board will work with the World Bank and the IMF.
They have been subcontracted to implement many of these policies. They
agreed to increase banks' capital requirements. They agreed to
tie executive pay to long-term, not short-term, performance. They also
wanted to move all derivatives contracts onto electronic exchanges. That
way, they can be better monitored. Finally, they suggested that companies
that are "too big to fail," like AIG, develop international contingency
plans. That would make sure their collapse wouldn't threaten the entire global
economy.
November 16-17, 2008, Washington,
DC. The G-20 held its first-ever summit. Before this meeting, the G-7 guided
most global economic plans. The topic was the 2008 financial crisis. Emerging market
leaders asked the United States to regulate its financial markets better.
The United States refused. The leaders also wanted better regulation of hedge funds and debt-rating companies such
as Standard & Poor's. They also sought to
strengthen standards for accounting and derivatives. One of the causes of the financial crisis was
insufficient regulations and standards.
G-20
Member Nations
The G-20 members include the G-7
nations: Canada, France, Germany, Italy, Japan, the UK and the United States. This group
of countries also meets on their own.
There are eleven emerging market and
smaller industrialized countries. They are Argentina, Australia, Brazil, China, India,
Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South
Korea and Turkey. The EU is also a member of the G-20.
Why
Is the G-20 Important?
The growth of Brazil, Russia, India
and China (the BRIC countries) has driven the growth of the global economy. The
G-7 countries grow slower. Therefore, the BRIC countries are critical for
ensuring continued global economic prosperity.
In the past, the leaders of the G-7
could meet and decide on global economic issues without much interference from
the BRIC countries. But these countries have become more important in providing
the needs of the G-7 countries. For example, Russia provides most of the
natural gas to Europe. China provides much of the manufacturing for the United
States. India provides high-tech services.
G-20
Protests
G-20 meetings are usually the site
of protests against the G-20 agenda. They claim the group focuses too much on
financial interests and globalization. Protesters want the G-20 leaders to
focus on one or more of these issues:
- Poverty - The Ontario Coalition Against Poverty leader
John Clarke said, “The whole process of putting together this grouping has
been about impoverishing people, and benefiting the richest members of
society.” In 2010, protesters were against the G-20's focus on fiscal
responsibility and austerity at the cost of social programs. They also
were opposed to the $1 billion cost of the meeting itself, which was borne
by Canadian taxpayers.
- Climate Change - Protesters wanted the G-20 to refocus
on global warming as a priority.
- Gender Equality - G-20 countries need to pay more
attention to rights for LBGT. They ask for more funding for family
planning, including abortions.
- Immigration - Protesters sought more open borders for
immigrants fleeing "humanitarian and climate crises." (Source:
"What the G-20 Protests Are Really About," Alixandra Gould, The
Faster Times, June 27, 2010.)
WHAT IS THE G20?
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