G7 Flashcards
what is the Group of 7/8?
The G7 (8) = the group of seven (group of eight from 1998 to 2014) is an informal forum consisting of representatives from seven developed economies
The G-7 is an informal block of industrialised democracies that meets annually to discuss issues such as global economic governance international security and energy policy
Includes the US Canada France Germany Italy Japan and the UK and the EU also attends meetings
who does the G7 represent?
The organisation represents many of the worlds most advanced economies making it a very important group as G-7 countries represent nearly 50% of net global wealth
main requirements to be a member of the G7
The main requirements to be a member of the G-7 — very high net national wealth and a very high human development index
development of the G7
The G-7 started off as the group of six which was formed in 1975 as a form for discussion of the global economy in the way of the turbulence created by the oil crisis of 1973 and the end of fixed exchange rates
The initiative came from the French president, Valero Giscard d’Estaing, And a German Chancellor Helmut Schmidt
It’s original members of France Germany Italy Japan the UK and the USA Canada joined shortly afterwards in 1976 making it the G-7
Russia joined in 1998 making it the G8 however the annexation of Crimea by Russia in 2014 led to Russia’s suspension and the group went back to being the G-7
membership of the G7
The G-7 is not a permanent organisation and there are no formal criteria for membership
There are new rounds of meetings on the rotating presidency member states take it in turns to reside over and host each annual round of meetings and it is the responsibility of the presidency to set the agenda
The focus of G-7 meetings is primarily economic but since the 1980s it has expanded its remit to include foreign and security issues and energy policy
strengths of the G7: PROVIDES A FORUM FOR DISCUSSION
Provides a forum where states can discuss common concerns openly and honestly in a way they could not do in other forums such as the UN
The group is small enough for intimate discussions between leaders and finance ministers which makes it easier to reach agreement
The G-7 also represent states with similar political and economic systems liberal democratic capitalist economies which facilitates consensus
strengths of the G7: IMPORTANT INTERVENTIONS
The G-7 has made a number of important interventions in global politics
In 1999 it cancelled $100 billion of bilateral and multilateral debt
it also went several steps further by doubling its aid to Africa and cancelling all debts of 19 countries owed to the IMF and World Bank in 2005 At the Gleneagles summit in Scotland
Into thousand and eight the G-7 met to coordinate their responses to the global financial crisis
Since 2014 the G-7 has placed pressure on Russia to withdraw from Crimea and stop supporting Russian separatist rebels in eastern Ukraine
weaknesses of the G7: LESS RELEVANT
The G-7 has become less relevant it started as a rich countries club to promote neoliberal economic policy, Arguably to the detriment of developing countries and economies, but has declined in relevance
It was formed in the 1970s by what were them the richest countries in the world but China and India have since broken into the top 10 of the most economically developed countries in the world but are not members of the G-7
At its peak in the late 1980s G7 members produce nearly 70% of the worlds GDP but this has since declined to under 50%
Countries like China and India are members of the G 20 arrival economic organisation that has become the key focus for dealing with the global financial crises and is moving to replace the G-7
weaknesses of the G7: INEFFECTIVE IN DEALING WITH POVERTY
Anti-globalisation protesters criticise the G-7 for its apparent inability or unwillingness to effectively deal with poverty inequality and climate change
It has cancelled much of the debt of developing countries but the gap continues to widen between them are developed countries
Despite sanctions and public condemnation is Russia continues to undermine the sovereignty of Ukraine and seems unconcerned about its exclusion from the G-7 probably because it continues to enjoy membership of the G 20 which is now generally thought to be a more important international forum
strength
It is a forum where the leaders and finance ministers of seven of the richest nations can discuss economic issues in an informal setting and devise new policy initiatives
The G8 meeting at Gleneagles in 2005 saw a $50 billion aid boost and debt cancellation deal agreed for the poorest countries
weakness
Membership of the G8 is historically rooted so it does not reflect the changing nature of power in the global economy there is no place at the table for China India Brazil so the G 20 has come to be seen as a more effective tool for coordinating global governance
weakness
The group has been divided and unable to deal with emerging global issues such as climate change and growing inequality
the G8 has become the target for the anti-globalisation movement as seen in the protests in Genoa in 2001 which was marred by violence and led to the prosecution 15 officials for mistreating protesters
The view that the G-7 reinforces a neocolonial division of the world and seeks to advance near liberalism even though this reinforces the global south peripheral status has led to many anti-globalisation and anti-G-7 protests
Including the huge clash between police and protesters in Genoa in 2008 around 50 protesters injured and one killed
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Together the G-7 represents 64% of the worlds GDP making it very powerful and influential
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They meet for two days every year in a series of private meetings and public media briefings
G-7 leaders are not required to make concrete plans but they have agreed to extend sanctions against Russia phase-out fossil feels by the end of the century and end extreme poverty and terrorism
A number of G-7 Summit have been responsible for important decisions
Gleneagles 2005
London 2013
Brussels 2014
Elmau 2015
