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

 United Kingdom
Prime Minister Theresa May
 Canada
Prime Minister Justin Trudeau
 France
President François Hollande
 Germany
Chancellor Angela Merkel
 Italy
Prime Minister Matteo Renzi
 Japan (2016 Chair)
Prime Minister Shinzō Abe
 United States
President Barack Obama
President-elect Donald Trump
 European Union
Council President Donald Tusk
Commission President Jean-Claude Juncker
Flags of G7 members of seen at University Avenue in Toronto.

The Group of 7 (G7) is a group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The European Union is also represented within the G7. These countries are the seven major advanced economies as reported by the International Monetary Fund: the G7 countries represent more than 64% of the net global wealth ($263 trillion).[1] A very high net national wealth and a very high Human Development Index are the main requirements to be a member of this group. The G7 countries also represent 46% of the global GDP evaluated at market exchange rates and 32% of the global purchasing power parity GDP.[2]

The 42nd G7 summit was held in Japan in May 2016. Other recent G7 meetings include that of May 2013 in Aylesbury, United Kingdom with an emergency meeting in The Hague, Netherlands on March 24, 2014.

History

The G7's precursor was the 'Group of Six'. It was 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, when Giscard d'Estaing invited them for an "informal gathering at the chateau of Rambouillet, near Paris [...] in a relaxed and private setting".[3] The intent was "to discuss current world issues (dominated at the time by the oil crisis) in a frank and informal manner".[3] The G6 followed an unofficial gathering starting in 1974 of senior financial officials from the United States, the United Kingdom, West Germany, Japan and France. They were called the "Library group" or the "Group of Five" because they met informally in the White House Library in Washington, DC.[4]: 34  (this is not to be confused with the current, but completely different "Group of Five", a group of the five top nations with emerging economies formed in 2005). The "Library Group" were the top five of the world's then leading economies as ranked by per capita GDP.[5]

Canada became the seventh member to begin attending the summits in 1976, after which the name 'Group 7' or G7 Summit was used.[3] Until 1986, there was still a "Group of Five" or "G5", a main policy coordination group of Finance Ministers and Central Bankers, but during Tokyo Economic Declaration in 1986, Canada and Italy were officially added, replacing the "G5" with a new "Group of Seven" or "G7" Forum.[6]

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,[7] Russian President Boris Yeltsin was invited first as a guest observer, later as a full participant. It was seen as a way to encourage Yeltsin's capitalist reforms.[citation needed] After the 1997 meeting Russia was formally invited to the next meeting and formally joined the group in 1998, resulting in a new governmental political forum, the Group of Eight, or G8.[3] However Russia was ejected from the group in 2014 following the Russian annexation of Crimea.

Function

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.[8] Its goal was fine tuning of short term economic policies among participant countries to monitor developments in the world economy and assess economic policies.[citation needed]

Work

Host venues of G7 summits in North America
Host venues of G7 summits in Japan

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.[9]

In 1996, the G7 launched an initiative for the 42 heavily indebted poor countries (HIPC).[10]

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".[11] In 1999 the G7 announced their plan to cancel 90% of bilateral, and multilateral debt for the HIPC, totaling $100 billion.[citation needed] In 2005 the G7 announced, debt reductions of "up to 100%" to be negotiated on a "case by case" basis.[citation needed]

In 2008 the G7 met twice in Washington, D.C. to discuss the global financial crisis of 2007-2010[12] and in February 2009 in Rome.[13][14] The group of finance ministers pledged to take "all necessary steps" to stem the crisis.[15]

On March 2, 2014, the G7 condemned the "Russian Federation's violation of the sovereignty and territorial integrity of Ukraine."[16] 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."[16]

On March 24, 2014, the G7 convened an emergency meeting in response to the Russian Federation's annexation of Crimea at the Dutch Catshuis, located in The Hague because all G7 leaders were already present to attend the 2014 Nuclear Security Summit. This was the first G7 meeting neither taking place in a member nation nor having the host leader participating in the meeting.[17]

On June 4, 2014 leaders at the G7 summit in Brussels, condemned Moscow for its "continuing violation" of Ukraine's sovereignty, in their joint statement and stated they were prepared to impose further sanctions on Russia.[18] This meeting was the first since Russia was expelled from the group G8 following its annexation of Crimea in March.[18]

The annual G7 leaders summit is attended by the heads of government.[19] The member country holding the G7 presidency is responsible for organizing and hosting the year's summit.

The serial annual summits can be parsed chronologically in arguably distinct ways, including as the sequence of host countries for the summits has recurred over time, series, etc.[20]

Date Host Host leader Location held Website Notes
1st November 15–17, 1975  France Valéry Giscard d'Estaing Rambouillet (Castle of Rambouillet) G6 Summit
2nd June 27–28, 1976  United States Gerald R. Ford Dorado, Puerto Rico[21] Also called "Rambouillet II". Canada joined the group, forming the G7[21]
3rd May 7–8, 1977  United Kingdom James Callaghan London President of the European Commission was invited to join the annual G-7 summits
4th July 16–17, 1978  West Germany Helmut Schmidt Bonn, North Rhine-Westphalia
5th June 28–29, 1979  Japan Masayoshi Ōhira Tokyo
6th June 22–23, 1980  Italy Francesco Cossiga Venice Prime Minister Ōhira died in office on June 12; Foreign Minister Saburō Ōkita led the delegation which represented Japan in his place.
7th July 20–21, 1981  Canada Pierre E. Trudeau Montebello, Quebec
8th June 4–6, 1982  France François Mitterrand Versailles
9th May 28–30, 1983  United States Ronald Reagan Williamsburg, Virginia
10th June 7–9, 1984  United Kingdom Margaret Thatcher London
11th May 2–4, 1985  West Germany Helmut Kohl Bonn, North Rhine-Westphalia
12th May 4–6, 1986  Japan Yasuhiro Nakasone Tokyo
13th June 8–10, 1987  Italy Amintore Fanfani Venice
14th June 19–21, 1988  Canada Brian Mulroney Toronto
15th July 14–16, 1989  France François Mitterrand Paris
16th July 9–11, 1990  United States George H. W. Bush Houston
17th July 15–17, 1991  United Kingdom John Major London
18th July 6–8, 1992  Germany Helmut Kohl Munich, Bavaria
19th July 7–9, 1993  Japan Kiichi Miyazawa Tokyo
20th July 8–10, 1994  Italy Silvio Berlusconi Naples
21st June 15–17, 1995  Canada Jean Chrétien Halifax, Nova Scotia [22]
22nd June 27–29, 1996  France Jacques Chirac Lyon International organizations' debut to G7 Summits periodically. The invited ones here were: United Nations, World Bank, International Monetary Fund and the World Trade Organization.[23]
23rd June 20–22, 1997  United States Bill Clinton Denver [24] Russia joins the group, forming G8
24th May 15–17, 1998  United Kingdom Tony Blair Birmingham [25]
25th June 18–20, 1999  Germany Gerhard Schröder Cologne, North Rhine-Westphalia [26] First Summit of the G-20 major economies at Berlin
26th July 21–23, 2000  Japan Yoshiro Mori Nago, Okinawa [27] Formation of the G8+5 starts, when South Africa was invited. Until the 38th G8 summit in 2012, it has been invited to the Summit annually without interruption. Also, with permission from a G8 leader, other nations were invited to the Summit on a periodical basis for the first time. Nigeria, Algeria and Senegal accepted their invitations here. The World Health Organization was also invited for the first time.[23]
27th July 20–22, 2001  Italy Silvio Berlusconi Genoa [28] Leaders from Bangladesh, Mali and El Salvador accepted their invitations here.[23] Demonstrator Carlo Giuliani is shot and killed by police during a violent demonstration. One of the largest and most violent anti-globalization movement protests occurred for the 27th G8 summit.[29] Following those events and the September 11 attacks two months later in 2001, the G8 have met at more remote locations.
28th June 26–27, 2002  Canada Jean Chrétien Kananaskis, Alberta [30] Russia gains permission to officially host a G8 Summit.
29th June 2–3, 2003  France Jacques Chirac Évian-les-Bains [1] The G8+5 was unofficially made, when China, India, Brazil, and Mexico were invited to this Summit for the first time. South Africa has joined the G8 Summit, since 2000, until the 2012 edition. Other first-time nations that were invited by the French president included: Egypt, Morocco, Saudi Arabia, Malaysia and Switzerland.[23]
30th June 8–10, 2004  United States George W. Bush Sea Island, Georgia [31] A record number of leaders from 12 different nations accepted their invitations here. Amongst a couple of veteran nations, the others were: Ghana, Afghanistan, Bahrain, Iraq, Jordan, Turkey, Yemen and Uganda.[23] Also, the state funeral of former president Ronald Reagan took place in Washington during the summit.
31st July 6–8, 2005  United Kingdom Tony Blair Gleneagles [32] The G8+5 was officially formed. On the second day of the meeting, suicide bombers killed 52 people on the London Underground and a bus. Nations that were invited for the first time were Ethiopia and Tanzania. The African Union and the International Energy Agency made their debut here.[23] During the 31st G8 summit in United Kingdom, 225,000 people took to the streets of Edinburgh as part of the Make Poverty History campaign calling for Trade Justice, Debt Relief and Better Aid. Numerous other demonstrations also took place challenging the legitimacy of the G8.[33]
32nd July 15–17, 2006  Russia Vladimir Putin Strelna, St. Petersburg [2] First G8 Summit on Russian soil. Also, the International Atomic Energy Agency and UNESCO made their debut here.[23]
33rd June 6–8, 2007  Germany Angela Merkel Heiligendamm, Mecklenburg-Vorpommern [3] Seven different international organizations accepted their invitations to this Summit. The Organisation for Economic Co-operation and Development and the Commonwealth of Independent States made their debut here.[23]
34th July 7–9, 2008  Japan Yasuo Fukuda Toyako (Lake Toya), Hokkaido [34] Nations that accepted their G8 Summit invitations for the first time are: Australia, Indonesia and South Korea.[23]
35th July 8–10, 2009  Italy Silvio Berlusconi La Maddalena(cancelled)
L'Aquila, Abruzzo (re-located)[35]
[4] This G8 Summit was originally planned to be in La Maddalena (Sardinia), but was moved to L'Aquila as a way of showing Prime Minister Berlusconi's desire to help the region in and around L'Aquila after the earthquake that hit the area on the April 6th, 2009. Nations that accepted their invitations for the first time were: Angola, Denmark, Netherlands and Spain.[36] A record of TEN (10) international organizations were represented in this G8 Summit. For the first time, the Food and Agriculture Organization, the International Fund for Agricultural Development, the World Food Programme, and the International Labour Organization accepted their invitations.[37]
36th June 25–26, 2010[38]  Canada Stephen Harper Huntsville, Ontario[39] [40] Malawi, Colombia, Haiti, and Jamaica accepted their invitations for the first time.[41]
37th May 26–27, 2011  France Nicolas Sarkozy Deauville,[42][43] Basse-Normandie [5] Guinea, Niger, Côte d'Ivoire and Tunisia accepted their invitations for the first time. Also, the League of Arab States made its debut to the meeting.[44]
38th May 18–19, 2012  United States Barack Obama Chicago (cancelled)
Camp David (re-located)[45]
[6] The summit was originally planned for Chicago, along with the NATO summit, but it was announced officially on March 5, 2012, that the G8 summit will be held at the more private location of Camp David and at one day earlier than previously scheduled.[46] Also, this is the second G8 summit, in which one of the core leaders (Vladimir Putin) declined to participate. This G8 summit concentrated on the core leaders only; no non-G8 leaders or international organizations were invited.
39th June 17–18, 2013  United Kingdom David Cameron Lough Erne, County Fermanagh[47] [7] As in 2012, only the core members of the G8 attended this meeting. The four main topics that were discussed here were trade, government transparency, tackling tax evasion, and the ongoing Syrian crisis.[48]
40th June 4–5, 2014  Russia (cancelled)
 European Union

( Belgium)
Vladimir Putin (cancelled)
Herman Van Rompuy (new) and José Manuel Barroso
Sochi (cancelled)
Brussels (re-located)
[8] G7 summit as an alternative meeting without Russia in 2014 due to association with Crimean crisis.[49] G8 summit did not take place in Sochi, Russia. G7 summit relocated to Brussels, Belgium.[50]
41st June 7–8, 2015  Germany Angela Merkel Schloss Elmau, Bavaria[51] [9] Summit dedicated to focus on the global economy as well as on key issues regarding foreign, security and development policy.[52] Global Apollo Programme was also on the agenda.[53]
42nd May 26–27, 2016[54][55]  Japan Shinzō Abe Shima, Mie Prefecture[56] [10]
43rd May 26–27, 2017[57]  Italy Matteo Renzi Taormina, Sicily[58]
44th TBD, 2018  Canada[59] Justin Trudeau TBD
45th TBD, 2019  France[59] TBD in 2017 Presidential Election TBD
46th TBD, 2020  United States[59] Donald Trump TBD
47th TBD, 2021  United Kingdom[citation needed] TBD in 2020 General Election TBD


Leaders

Member Head of government Finance minister Central bank governor
 Canada Prime Minister Justin Trudeau Minister of Finance Bill Morneau Stephen Poloz
 France President François Hollande Minister of Finances Michel Sapin Christian Noyer
Prime Minister Manuel Valls
 Germany Chancellor Angela Merkel Minister of Finance Wolfgang Schäuble Jens Weidmann
 Italy Prime Minister Matteo Renzi Minister of Economy
and Finance
Pier Carlo Padoan Ignazio Visco
 Japan Prime Minister Shinzō Abe Minister of Finance Tarō Asō Haruhiko Kuroda
 United Kingdom Prime Minister Theresa May Chancellor of the Exchequer Philip Hammond Mark Carney
 United States President Barack Obama Secretary of the Treasury Jack Lew Janet Yellen
 European Union Council President[60] Donald Tusk Commissioner for Economic
and Monetary Affairs
and the Euro
Jyrki Katainen Mario Draghi
Commission President[60] Jean-Claude Juncker

Heads of State and Government and EU representatives, as of 2016


Member country data

Member Trade mil. USD (2014) Nom. GDP mil. USD (2014)[61] PPP GDP mil. USD (2014)[61] Nom. GDP per capita USD (2014)[61] PPP GDP per capita USD (2014)[61] HDI (2015) Population (2014) Permanent members of UN Security Council DAC OECD Economic classification (IMF)[62]
 Canada 947,200 1,785,387 1,595,975 50,304 44,967 0.913 35,467,000 Red XN Green tickY Green tickY Advanced
 France 1,212,300 2,833,687 2,591,170 44,332 40,538 0.888 63,951,000 Green tickY Green tickY Green tickY Advanced
 Germany 2,866,600 3,874,437 3,748,094 47,774 46,216 0.916 80,940,000 Red XN Green tickY Green tickY Advanced
 Italy 948,600 2,147,744 2,135,359 35,335 35,131 0.873 60,665 551 Red XN Green tickY Green tickY Advanced
 Japan 1,522,400 4,602,367 4,767,157 36,222 37,519 0.891 127,061,000 Red XN Green tickY Green tickY Advanced
 United Kingdom 1,189,400 2,950,039 2,569,218 45,729 39,826 0.907 64,511,000 Green tickY Green tickY Green tickY Advanced
 United States 3,944,000 17,348,075 17,348,075 54,370 54,370 0.915 318,523,000 Green tickY Green tickY Green tickY Advanced
 European Union 4,485,000 18,527,116 18,640,411 36,645 36,869 0.865 505,570,700

The G7 is composed of the wealthiest developed countries by national net wealth (See National wealth). The People's Republic of China, according to its data, would be 2nd (9.1% of the world net wealth) in the world, but is excluded because the IMF and other main global institutions don't consider China a developed country.[63] As of 2014 Credit Suisse report the G7 (without the European Union) represents above 64% of the global net wealth.[63] Including the EU the G7 represents over 70% of the global net wealth.[63]

Member facts

  • 7 of the 7 top-ranked advanced economies with the current largest GDP and with the highest national wealth (United States, Japan, Germany, UK, France, Italy, Canada)[64]
  • 7 of the 15 top-ranked countries with the highest net wealth per capita (United States, France, Japan, United Kingdom, Italy, Canada, Germany)
  • 7 of 10 top-ranked leading export countries.[65]
  • 5 of 10 top-ranked countries with the largest gold reserves (United States, Germany, Italy, France, Japan).
  • 7 of 11 top-ranked economies (by nominal GDP), according to latest (2012 data) International Monetary Fund's statistics.
  • 4 countries with a nominal GDP per capita above US$40,000 (United States, Canada, Germany, United Kingdom).
  • 4 countries with a sovereign wealth fund, administered by either a national or a state/provincial government (United States, France, Canada, Italy).[66]
  • 7 of 30 top-ranked nations with large amounts of foreign-exchange reserves in their central banks.
  • 3 out of 9 countries having nuclear weapons (France, UK, United States).[67][68] plus 2 countries that have nuclear weapon sharing programs (Germany, Italy).[69][70]
  • 6 of the 9 largest nuclear energy producers (United States, France, Japan, Germany, Canada, UK), although Germany announced in 2011 that it will close all of its nuclear power plants by 2022.[71] Following the 2011 Tōhoku earthquake and tsunami, Japan shut down all of its nuclear reactors.[72] However, Japan restarted several nuclear reactors, with the refueling of other reactors underway.
  • 7 of the 8 top donors to the UN budget for the 2016 annual fiscal year.
  • 4 countries with a HDI index for 2013 of 0.9 and higher (United States, Germany, United Kingdom, Canada).
  • 2 countries with the highest credit rating from Standard & Poor's, Fitch, and Moody's at the same time (Canada and Germany).[73]
  • 2 countries that retain the death penalty in law and practice (Japan and the United States).
  • 2 countries consist of islands and have left-hand traffic (Japan and the United Kingdom; in the US Virgin Islands, they have left-hand traffic to remain compatible with the British Virgin Islands, but the rest of the United States has right-hand traffic).
  • In the G7 states, 5 languages have official status: English in 3 countries (Canada, United Kingdom and US), French in 2 countries (Canada and France), German, Italian and Japanese in 1 country each (Germany, Italy and Japan).

Protests

In 2015, despite Germany's immense efforts to prevent it and despite the remote location of the summit, the luxury hotel Schloss Elmau at the foot of the Wetterstein mountains at an altitude of 1008 m above sea level, about 300 of the 7500 peaceful protesters led by the group 'Stop-G7' managed to reach the 3 m high and 7 km long security fence surrounding the summit location. The protesters questioned the legitimation of the G7 to make decisions that could affect the whole world. Authorities had banned demonstrations in the closer area of the summit location and 20,000 policemen were on duty in Southern Bavaria to keep activists and protesters from interfering with the summit.[74] [75]

See also


References

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