Several groups have been formed to tackle the global problems and many of them are playing crucial role in balancing those problems. G-7 and G-20 are one of them. These groups have biggest economies of the world and are working for stabilizing the global issues.
G7 / G8 (The Group of Eight Industrialized Nations)
Background
Both the G7 and G8 are same groups. Initially the group was made by six members as G6 with its initial members as Italy, Japan, France, Germany, UK and USA in 1975. Their main aim of gathering was to discuss global issues in a peaceful manner. In 1976, Canada joined them and subsequently Russia was invited to the group in 1997 and joined the group from 1998. But Russia was fragmented out from the group in 2014 after annexation of Crimea.
Membership
This group consists of finance minister and central bank governors of seven nations i.e. Italy, Japan, France, Germany, UK Canada and USA. They meets annually to discuss economic and governance issues. The ministers and envoys’ of groups are known as Sherpas.
Russian suspension
The meeting of G8 leader excluding Russian leaders took place in Brussels in 2014, where Russia was suspended from the group. Russia has hosted the summit in 2006 and the next summit hosted by Russia would have been in Sochi, Russia in 2014. But the circumstances led to change the venue to Brussels. The relation came to a critical point when Russian backed rebel group and Ukrainian military engaged into fight, sanctions were imposed by European nations and US on Russia and also imposed penalties on pro-Russian separatist leaders and state officials for isolating it. Conditions worsened after the crashing of MH17, which resulted in expansion of sections.
Minsk accord
As the sections over Russia were getting tightened, Minsk accord was signed by European nations, US and Russia that have an agreement for Russia to withdraw arms and weapons from Ukraine and calling ceasefire.
G20 (Developing Nations)
G-20 is another name that remains in news with G-7. G-20 is a group of nations including India which accounts for major economies of the world.
Membership
This group consists of 19 countries and European Union. The summit of G-20 took place in 1999 on the advice of G-7 nations. The leaders of G-20 meets annually like G-7 and central bank governors and finance ministers also meets to bolster the economic ties and conditions, regulating financial regulations.
Background
The meeting was started in 1999 which was just a meeting of finance ministers and central bank governors to discuss the remedies of financial crisis that took place few years back. The leaders met first time in 2008. G-20 has got the support of various organizations like WB, WTO, UN, OECD, IMF, etc.
Achievements
The group has raised the issue of reforms and increasing funds in IMF and effectively agreed over fighting protectionism and boosting economies. The group led to the birth of financial stability board for alarming financial risks. Well, recently a new group has been framed by G-20 leaders named as W-20 which aims to boost the role of women in global economy. The group is formed during the G-20 meeting held in Ankara, Turkey in the beginning of this year. All G-20 members are asked to choose their representatives for W-20.
Is G-20 better than G-7?
It is believed that G-20 has replaced G-7 as most of the developing nations and biggest economies like India, china, Russia, South Africa belongs to G-20 and are not included in G-7. G-20 got appreciation for handling financial crisis in 2008’s summit after the fall down of Lehman brothers. Well, the answer lies in the performance and effective consensus of nations over the issues with their proper handling.
