Economic Forums Flashcards
What are economic forums?
Organisations that exist as forums for world leaders to play an important role in the coordinating of policies between major economies
What is the aim of economic forums?
To enable heads of state, their treasurers and central bank governors to discuss global economic issues with a particular attention towards economic stability and growth.
What does the G7 stand for?
Group of 7 nations
When was the G7 established?
1976
Who makes up the G7?
7 of the countries most advanced economies
US, UK, France, Germany, Canada, Japan, Italy and Russia in 1998 to form the G8.
What is the purpose of the G7?
Operates an economic council of the worlds wealthiest nations, meeting annually to discuss the conditions of the global economy.
It has been the unofficial forum communicating global macroeconomic policy because of its influence over the fiscal and monetary policies of the world’s largest advanced economies - useful in times of conflict, war, crisis, etc.
Because of the G7’s status as the forum for the world’s most powerful economies, its agenda has often included general political issues and current priorities, such as climate change, global poverty and security.
What is a new limitation of the G7? What is a stat to support this?
Countries in recent years have argued that the membership of the G7 is no longer representative of the most important forces of the global economy, especially given China and India are not included; the G7’s share of global GDP shrunk from 68% in 1992 to 25.2% in 2024.
What does the G20 stand for?
Group of 20 Nations
When was the G20 established?
1999
Who makes up the G20?
The G20 includes 19 of the world’s largest national economies, plus the EU, covering 80% of world GDP in 2023; includes emerging economies such as china and india that have become the driving force behind world economic growth since 2008.
What is the purpose of the G20? What does the annual summit deal with?
The extent to which the G20 or G7 becomes the forum for international economic cooperation in future years is unclear, but at the moment, the G20’s main activity is its annual summit, and it doesn’t have any permanent leadership or headquarters.
The annual summit generally deals with a wide range of current issues, and does not advance specific economic goals; it therefore relies on individual heads of state to provide momentum and leadership to work together on specific global challenges.
Name one effect caused by the G20 (2021)
In 2021, the G20 agreed on a global tax reform plan in partnership with the OECD, resulting in a minimum global corporate tax rate and measure to reduce tax avoidance, and agreed on measures to coordinate large-scale debt relief for developing countries with the World Bank and IMF.
