G20 Flashcards
what is the Group of 20 (G20)?
The G 20 the group of 20 is similar to the G-7 but is composed of the G7 nations +12 emerging economies And a representative from the EU
Established in 1999 but it’s first summit was not until 2008
Represents 2/3 of the worlds population 85% of global GDP and 75% of world trade
All member states have equal representation regardless of their wealth or size
purpose of the G20
To promote international financial stability and replaced the G-7 as the main economic forum of wealthy nations
how is the G20 more diverse than the G7?
Much more diverse than the G-7 with members including Argentina Brazil Canada Mexico and the USA from the American continent China India Indonesia Japan and South Korea from Asia Saudi Arabia from the Middle East South Africa and Australia as the sole representatives from Africa and Oceania as well as France Germany Italy Russia Turkey and the UK from Europe
The 20th member is the EU
who does the G20 work closely with?
Works closely with a number of international organisations including the UN IMF World Bank OECD ILO and WTO as well as the EU which is technically a member of the G20 too
membership criteria
The G 20 has no formal organisation or membership criteria instead the main work of the organisation is conducted through a series of meetings
However the G 20 has created the financial stability board to coordinate the activities of national financial regulatory bodies with international bodies to improve financial regulation
presidency
There is a rotating presidency held for one year
The member state holding the presidency coordinate the years activities in conjunction with its immediate predecessor and successor the main annual meeting is also hosted by the member state with the presidency
strengths of the G20: MORE SIGNIFICANT THAN THE G7
Since 2009 the G 20 has become a more significant body than the G-7
The G-7 states were hit particularly hard by the global financial crisis and realised they needed the help of developing states to weather the storm
At the Washington 2008 and London 2009 summits the G 20’s first meeting is a package of measures to aid economic recovery was agreed with a fund of $500 billion to stimulate economic growth
The meeting also involved an agreement over the expansion of the IMF’s borrowing program
And voting shares in the IMF and World Bank were adjusted in favour of the developing countries
At the Pittsburgh Summit in 2009 members agreed that the G 20 would replace the G-7 as the main forum for economic co-operation
weaknesses of the G20
As with the G-7 not all of its members are the richest countries in the world Argentina Indonesia and Mexico rank outside the top 20 which possibly limits its power and influence
Lack of transparency and accountability is there is no formal charter and the most important meetings are held behind close doors and that remote locations in order to deter protesters
strengths: more representative
G 20 represents the world is 20 most powerful economies including the European Union
Unlike the G-7 its members include economically powerful countries in the developing world and is therefore seen by many as better representing the changing balance of global economic and political power
Its members account for 80% of world trade And 85% of global GDPand in 2009 the G 20 announced that it would replace the G-7 as the main economic Council of wealthy nations
It therefore has greater legitimacy as it reflects the true nature of the current global economic order far better than the G-7 IMF and World Bank
It has a good regional balance that represents the interests of industrialised and emerging economies of global population representation 2/3 of world population
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It’s key success was its response to the global financial crash in 2008
Measures to inject £748 million into the global economy was agreed as was a cleanup of financial markets and reforms of the World Bank and IMF including a stronger voice for the developing world greater resources and a stronger role in supervising the global financial system
The G 20 meeting in 2009 in London was especially vital in laying down vital shared policies by which the global recession could be combated including increasing the IMS budget to $750 billion tackling unregulated banking and a shared commitment not to introduce new tariffs for at least another year or devalue their currencies in order to boost exports
It agreed to continue freetrade rather than resort to protectionism in the face of the global financial crisis
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While more representative of the G 20 gives no voice to the poor states
It’s ideology remains that of the liberal orthodox theory of development which is seen by many to a failed this has also led to the G 20 becoming a target for the anti-globalisation movement
Brisbane 2014
G 20 L discussed ways of ensuring that economies grow by 2.1% by 2018 for example by encouraging female participation in the economy and cracking down on tax avoidance by MNCs
Antalya 2015
All powers agreed to cooperate more closely together in response to the Isis threat especially in regard to aircraft security
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Membership includes more states that do not always agree with each other this enables the G 20 to be more of a form for dispute resolution and problem-solving and the G-7 whose members broadly agree with each other on most matters and expel those with whom the majority do not agree
Therefore the G 20 is a forum for influencing climate change when newly emerging economy such as India have very different views to more established economies it can be argued that this makes the G 20 more useful
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The G 20 has become a focal point for anticapitalist protests these protests were particularly significant in the early to thousands of protesters regularly targeted summits for large-scale demonstrations including violent protest in London during the 2009 summit
The grievances protesters rates range from demanding action from heavily industrialised states of climate change to the lack of regulation in the world banking system and the prevention of excessive bonuses
