G20
 Areas in dark blue represent the member countries in the G-20; light blue represent members of the EU not individually represented. | |
| Abbreviation | G-20 |
|---|---|
| Formation | 1999 2008 (Summit) |
| Purpose | Bring together systemically important industrialized and developing economies to discuss key issues in the global economy.[1] |
Membership | |
G-20 Chair |  South Korea (2010) |
Staff | None[2] |
| Website | http://www.g20.org/ |
The Group of Twenty Finance Ministers and Central Bank Governors (known as the G-20 and also the G20 or Group of Twenty) is a group of finance ministers and central bank governors from 20 economies: 19 countries plus the European Union. Recently summits meeting at level of Heads of government have been introduced. The 2010 chair country of the G-20 is South Korea.[3]
Collectively, the G-20 economies comprise 85%[4] of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.[2]
The G-20 is a forum for cooperation and consultation on matters pertaining to the international financial system. It studies, reviews, and promotes discussion (among key industrial and emerging market countries) of policy issues pertaining to the promotion of international financial stability, and seeks to address issues that go beyond the responsibilities of any one organization.
With the G-20 growing in stature since the 2008 Washington summit, its leaders announced on September 25, 2009, that the group will replace the G8 as the main economic council of wealthy nations.[5]
Heads of states of G-20 members meet semi-annually at the G-20 summit. The G-20 summits for 2010 are scheduled to be held in Toronto on June 26–27 and Seoul on November 11–12.
Organization
The G-20 operates without a permanent secretariat or staff. The chair rotates annually among the members and is selected from a different regional grouping of countries. The chair is part of a revolving three-member management group of past, present and future chairs referred to as the Troika. The incumbent chair establishes a temporary secretariat for the duration of its term, which coordinates the group's work and organizes its meetings. The role of the Troika is to ensure continuity in the G-20's work and management across host years.
Member countries and organizations
In 2010, there are 20 members of the G-20. These include, at the leaders summits, the leaders of 19 countries and of the European Union and, at the ministerial-level meetings, the finance ministers and central bank governors of 19 countries and of the European Union :[2][6]
In addition to these 20 members, the following forums and institutions, as represented by their respective chief executive officers, participate in meetings of the G-20:[2]
- the Managing Director of the International Monetary Fund
- the Chairman of the International Monetary Fund
- the President of the World Bank
- International Monetary and Financial Committee
- the Chairman of the Development Committee
Membership does not reflect exactly the 19 largest national economies of the world in any given year. The organization states:[1]
In a forum such as the G-20, it is particularly important for the number of countries involved to be restricted and fixed to ensure the effectiveness and continuity of its activity. There are no formal criteria for G-20 membership and the composition of the group has remained unchanged since it was established. In view of the objectives of the G-20, it was considered important that countries and regions of systemic significance for the international financial system be included. Aspects such as geographical balance and population representation also played a major part.
All 19 member nations are among the top 32 economies as measured in GDP at nominal prices in a list published by the International Monetary Fund (IMF) for 2008.[8] Not represented by membership in the G-20 are Switzerland (19), Norway (25), Taiwan (26), Iran (28) and Venezuela (31) even though they rank higher than some members. Spain (9), Netherlands (16), Poland (18), Belgium (20), Sweden (22), Austria (24), Greece (27) and Denmark (29) are included only as part of the EU, and not independently. When the countries' GDP is measured at purchasing power parity (PPP) rates, all 19 members are among the top 24 in the world in 2008, according to the IMF.[9] Iran (17), Taiwan (19) and Thailand (23) are not G-20 members, while Spain (12), Netherlands (19) and Poland (20) are only included in the EU slot. However, in a list of average GDP, calculated for the years since the group's creation (1999–2008) at both nominal and PPP rates, only Spain, Netherlands, Taiwan, and Poland appear above any G-20 member in both lists simultaneously.[10]
It is often argued[by whom?] that the G-20, although it provides broader representation than the G8, is not entitled to make decisions that affect the whole world, because its member states are selected arbitrarily. The G-20 does not have a charter and its debates are not public, making it an "undemocratic institution."[11] Critics propose[by whom?] an alternative such as an Economic Security Council within the United Nations, where members should be elected by the General Assembly based on their importance in the world economy and the contribution they are willing to provide to world economic development.[12]
History
The G-20, which superseded the G33, which had itself superseded the G22, was foreshadowed at the Cologne Summit of the G7 in June 1999, but was formally established at the G7 Finance Ministers' meeting on 26 September 1999. The inaugural meeting took place on 15–16 December 1999 in Berlin. In 2008 Spain and The Netherlands were included by French invitation for the G-20 Leaders Summit on Financial Markets and the World Economy.
In 2006 the theme of the G-20 meeting was “Building and Sustaining Prosperity. The issues discussed included domestic reforms to achieve “sustained growth”, global energy and resource commodity markets, ‘reform’ of the World Bank and IMF, and the impact of demographic changes due to an aging population. Trevor A. Manuel, MP, Minister of Finance, South Africa, was the chairperson of the G-20 when South Africa hosted the Secretariat in 2007. Guido Mantega, Minister of Finance, Brazil, was the chairperson of the G-20 in 2008; Brazil proposed dialogue on competition in financial markets, clean energy and economic development and fiscal elements of growth and development. In a statement following a meeting of G7 finance ministers on 11 October 2008, US President George W. Bush stated that the next meeting of the G-20 would be important in finding solutions to the (then called) economic crisis of 2008. An initiative by French President Nicolas Sarkozy and British Prime Minister Gordon Brown led to a special meeting of the G-20, a G-20 Leaders Summit on Financial Markets and the World Economy, on 15 November 2008.[13] G20 leaders met again in London on 2 April 2009.[14] Another G20 summit was held 24–25 September 2009 in Pittsburgh, Pennsylvania.[15]
Summits
The G-20 Summit was created as a response both to the financial crisis of 2007–2010 and to a growing recognition that key emerging countries were not adequately included in the core of global economic discussion and governance. The G-20 Summits of heads of state or government were held in addition to the G-20 Meetings of Finance Ministers and Central Bank Governors who continued to meet to prepare the Heads Summits and implement their decisions.
| Date | Host country | Host city | website | |
|---|---|---|---|---|
| 1st[16] | November 2008 |  United States |
Washington, D.C. | |
| 2nd[16] | April 2009 |  United Kingdom |
London | [2] |
| 3rd[16] | September 2009 | United States |
Pittsburgh | [3] |
| 4th[17] | June 2010 |  Canada |
Toronto | [4] |
| 5th[18] | November 2010 | South Korea |
Seoul | [5] |
| 6th[19] | 2011 |  France |
TBD |
Meetings of Finance Ministers and Central Bank Governors:
|
Meetings of the Labor and Employment Ministers:
 Public reactionSince 1999, many of the G-20 meetings have faced public protest. While most protests have started out peacefully, many have turned violent with numerous people being injured and some property damage in local areas.[21] In response to the protests, many law enforcement operations have been employed, some of whom use force to disperse protesters. See alsoNotes
External links Wikimedia Commons has media related to G20.
|
