G7

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Group of Seven and the European Union
The G7-nations and the European Union in the world map

 Canada
Prime Minister Stephen Harper
 France
President François Hollande
 Germany
Chancellor Angela Merkel
 Italy
Prime Minister Matteo Renzi
 Japan
Prime Minister Shinzō Abe
 United Kingdom
Prime Minister David Cameron
 United States
President Barack Obama
 European Union (2014 Chair)
Council President Herman Van Rompuy
Commission President José Manuel Barroso
G7 finance ministers at the 2008 meeting (front row, left to right):

The Group of 7 (G7) is a group consisting of the finance ministers and central bank governors of seven advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States meeting to discuss primarily economic issues. The European Union is also represented within the G7. The G7 are the seven wealthiest major developed nations by national net wealth, representing more than 63% of the net global wealth ($241 trillion) according to the Credit Suisse Global Wealth Report October 2013.[1] The IMF's Managing Director usually participates.[2] Recent G7 meetings include that of May 2013 in Aylesbury, United Kingdom with an emergency meeting in The Hague, Netherlands on March 24, 2014. Most recently there was a meeting in Brussels on June 4th 2014.[3]

History[edit]

The G7's precursor was the 'Group of Six', founded ad hoc in 1975, consisting of finance ministers and central bank governors from France, West Germany, Italy, Japan, the United Kingdom and the United States to monitor developments in the world economy and assess economic policies. Canada became the seventh member in 1976, after which the name 'Group 7' or G7 was used.[4] During 1986–87 the G7 with its finance ministers and central bank governors superseded the G5 as the main policy coordination group, particularly following the Louvre Accord of February 1987, agreed by the G5 plus Canada and endorsed by the G7.

Following 1994's G7 summit in Naples, Russian officials held separate meetings with leaders of the G7 after the group's summits. This informal arrangement was dubbed the Political 8 (P8) – or, colloquially, the G7+1. At the invitation of Prime Minister of the United Kingdom Tony Blair and President of the United States Bill Clinton,[5] President Boris Yeltsin was invited first as a guest observer, later as a full participant. It was seen as a way to encourage Yeltsin with his capitalist reforms. Russia formally joined the group in 1998, resulting in the Group of Eight, or G8.

Function[edit]

The organization was originally founded to facilitate shared macroeconomic initiatives by its members in response to the collapse of the exchange rate 1971, during the time of the Nixon Shock, the 1970s energy crisis and the ensuing recession.[6]

Work[edit]

Since 1975 the group meets annually on summit site to discuss economic policies; Since 1987, the G7 finance ministers have met at least semi-annually, up to 4 times a year at stand-alone meetings.[2][7]

To discuss the global financial crisis of 2007-2010 the G7 met twice in in Washington, D.C. in 2008[8] and in February 2009 in Rome.[9][10] The group of finance ministers pledged to take "all necessary steps" to stem the crisis.[11]

On March 2, 2014, the G7 condemned "the Russian Federation's violation of the sovereignty and territorial integrity of Ukraine."[12] The G7 stated "that the International Monetary Fund(IMF) remains the institution best prepared to help Ukraine address its immediate economic challenges through policy advice and financing, conditioned on needed reforms", and that the G7 was "committed to mobilize rapid technical assistance to support Ukraine in addressing its macroeconomic, regulatory and anti-corruption challenges."[12]

On March 24, 2014, the G7 convened an emergency meeting at the Catshuis, located in The Hague in response to the Russian Federation's annexation of Crimea. The Hague was chosen because all G7 leaders were already present to attend the 2014 Nuclear Security Summit, so this became the first G7 meeting neither taking place in a member nation nor having the host leader participating in the meeting.[13]

On June 4, 2014 on G7 meeting in Brussels leaders of the G7 nations in their joint statement condemned Moscow for its "continuing violation" of Ukraine's sovereignty and say they are prepared to impose further sanctions on Russia over its actions in Ukraine.[14]

The G7 summit on June 4-5, 2014 is the first since Russia was expelled from the group following its annexation of Crimea in March.[14]

Meetings[edit]

Date Host member Host leader Location Initiatives
November 15–17, 1975  France Jean-Pierre Fourcade Château de Rambouillet, Rambouillet
June 27–28, 1976  United States Jan Jordan Rodriguez Dorado Beach Hotel, Dorado, Puerto Rico
May 7–8, 1977  United Kingdom Denis Healey 10 Downing Street, London
July 16–17, 1978  Germany Hans Matthöfer Official residence of the Chancellor of the Federal Republic of Germany Bonn
June 28–29, 1979  Japan Masayoshi Ohira Tokyo
May 28–30, 1983  United States Ronald Reagan Colonial Williamsburg, Williamsburg, Virginia
June 19–23, 1988  Canada Michael Wilson Metro Toronto Convention Centre, Ontario
July 9–11, 1990  United States James Baker Rice University and other locations in the Museum District Houston, Texas
June 1994  Italy Lamberto Dini Naples
June 15–17, 1995  Canada Paul Martin Summit Place, Halifax, Nova Scotia
June 27–29, 1996  France Jean Arthuis Musée d'art contemporain de Lyon, Lyon initiative for the 42 heavily indebted poor countries, founding of G20
June 19, 1999  Germany Gerhard Schröder Cologne Financial Stability Forum and G20
February 11–13, 2001  Italy Vincenzo Visco Palermo
February 6–8, 2010  Canada Jim Flaherty Toronto, Ontario
May 10–11, 2013  United Kingdom George Osborne Hartwell House Hotel and Spa, Aylesbury
March 24, 2014  European Union Mark Rutte Catshuis, The Hague, the Netherlands
June 4-5, 2014  European Union Herman Van Rompuy Brussels, Belgium

Influence[edit]

The G7 has influenced IMF and World Bank rules of crisis resolution and development, as well as GATT's rules of international trade.[15]

Initiatives[edit]

In 1996 the G7 launched an initiative for the 42 heavily indebted poor countries (HIPC).[16] In 1999, the G7 decided to get more directly involved in "managing the international monetary system" through the Financial Stability Forum, formed earlier in 1999 and the G-20, established following the summit, to "promote dialogue between major industrial and emerging market countries".[17] In 1999 the G7 announced their plan to cancel 90% of bilateral, and multilateral debt for the HIPC, totaling $100 billion. In 2005 the G7 announced, debt reductions of "up to 100%" to be negotiated on a "case by case" basis.

Criticism[edit]

The G7 has been criticized for their representational deficit.[18] The G7 does not include the world's largest emerging economies such as Brazil, Russia, India and China. Walden Bello calls the G7 an undemocratic institution.[19] The G7 decision making process has been described non-transparent, by former insider Leo Van Houtven, Secretary of the IMF from 1977 to 1996: "[The G7's] frequent contacts with IMF management on both policy and operational issues lack transparency..."[17]

Gallery[edit]

See also[edit]

External links[edit]

References[edit]

  1. ^ Credit Suisse Global Wealth Databook 2013. Credit Suisse. October 2013. 
  2. ^ a b "A Guide To Committees, Groups, And Clubs. G7". factsheet. IMF org. September 27, 2013. Retrieved 25 March 2014. 
  3. ^ "Obama and Merkel warn of tougher sanctions against Russia over Ukraine The German and US leaders issued a joint statement at the G7 summit on Wednesday night". 
  4. ^ 2008 Evian summit - Questions about the G8
  5. ^ "Russia — Odd Man Out in the G-8", Mark Medish, The Globalist, 02-24-2006.Accessed: 07-12-2008
  6. ^ Bayne, Nicholas (December 7, 1998), "International economic organizations :more policy making less autonomy", in Reinalda, Bob; Verbeek, Bertjan, Autonomous Policymaking By International Organizations (Routledge/Ecpr Studies in European Political Science, 5), Routledge, ISBN 9780415164863, OCLC 70763323, 0415164869 
  7. ^ "G7/8 Ministerial Meetings and Documents". G8 Information Centre. University of Toronto. 2014. Retrieved 10 March 2014. 
  8. ^ Bo Nielsen (14 April 2008). "G7 Statement Fails to Convince Major Traders to Change Outlook. publisher= Bloomberg L.P.". 
  9. ^ Simon Kennedy (10 October 2008). G7 "Against the Wall- Weighs Loan-Guarantee Plan (Update1)". Bloomberg L.P. 
  10. ^ Yahoo.com[dead link]
  11. ^ Simon Kennedy (11 October 2008). G7 "Commit to 'All Necessary Steps' to Stem Meltdown (Update3)]". Bloomberg L.P. 
  12. ^ a b "Statement by G7 Nations". G8 Info Ctr. University of Toronto. March 2, 2014. Retrieved 10 March 2014. 
  13. ^ "G7 leaders descend on the Netherlands for Ukraine crisis talks". CBC news. Thomson Reuters. 23 March 2014. 
  14. ^ a b "G7 leaders warn Russia of fresh sanctions over Ukraine". 2014-06-05. 
  15. ^ de Brouwer, Gordon (2012-03-20). "The Asian century and the G20: an Australian perspective on a changing world". Australian Department of Foreign Affairs and Trade. Retrieved 11 March 2014. 
  16. ^ "Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative;Perspectives on the Current Framework and Options for Change". IMF.org. Retrieved 25 March 2014. 
  17. ^ a b Van Houtven, Leo (September 2004). "Rethinking IMF Governance". Finance & Development. IMF. p. 18. Retrieved 25 March 2014. 
  18. ^ Telò, Mario (February 2012). State, Globalization and Multilateralism: The challenges of institutionalizing regionalism. Springer. p. 167. 
  19. ^ Walden Bello (October 25, 2001). "Prospects for Good Global Governance: The View from the South. A Report Prepared for the Bundestag, Federal Republic of Germany". Global Policy Forum. Retrieved 23 March 2014.