The Group of Twenty (G-20) Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global economy. The inaugural meeting of the G-20 took place in Berlin, on December 15-16, 1999, hosted by German and Canadian finance ministers.
The G-20 was created as a response both to the financial crises of the late 1990s and to a growing recognition that key emerging-market countries were not adequately included in the core of global economic discussion and governance. Prior to the G-20 creation, similar groupings to promote dialogue and analysis had been established at the initiative of the G-7. The G-22 met at Washington D.C. in April and October 1998. Its aim was to involve non-G-7 countries in the resolution of global aspects of the financial crisis then affecting emerging-market countries. Two subsequent meetings comprising a larger group of participants (G-33) held in March and April 1999 discussed reforms of the global economy and the international financial system. The proposals made by the G-22 and the G-33 to reduce the world economy's susceptibility to crises showed the potential benefits of a regular international consultative forum embracing the emerging-market countries. Such a regular dialogue with a constant set of partners was institutionalized by the creation of the G-20 in 1999.
G-20 leaders will gather once a year for a routine summit starting 2011. In the interim year of 2010, Canada and South Korea will host two rounds in June and November respectively. South Korea assumes the forum chairmanship next year.
“Follow-up measures from Pittsburgh within the G-20 will fall primarily to South Korea as the chair and host of G-20 meetings during 2010,” according to Scott Snyder, director of the Center for U.S.-Korea Policy of the Asia Foundation, on his organization’s Web site. “This development will mark a significant symbolic turning point in global governance, as South Korea will be the first non-G-8 country to hold those responsibilities since the G-20 has emerged as a venue for addressing global financial issues at the leadership level. It also places the burden of proof on South Korea to show that an expanded forum beyond the G-8 can provide effective global leadership in response to the crisis.”
A senior Lee administration official said Korea’s hosting of the G-20 in November next year would be a breakthrough in the country’s diplomatic history.
“Lee’s leadership in past G-20 summits in Washington and London has been largely praised,” the official said. “The president made clear his position against trade protectionism, initiating ‘standstill’ pledges among the participants at the Washington G-20 summit not to erect any new trade and investment barriers. This has been seen as one of the most significant achievements of the forum.”
Shortly after the Washington summit last year, South Korea launched aggressive diplomatic efforts to host a G-20 summit. Lee ordered a task force to be established and appointed Sakong Il, then his special economic advisor, to head the G-20 Summit Coordinating Committee.
Membership
The G-20 is made up of the finance ministers and central bank governors of 19 countries:
- Argentina
- Australia
- Brazil
- Canada
- China
- France
- Germany
- India
- Indonesia
- Italy
- Japan
- Mexico
- Russia
- Saudi Arabia
- South Africa
- Republic of Korea
- Turkey
- United Kingdom
- United States of America
The European Union, who is represented by the rotating Council presidency and the European Central Bank, is the 20th member of the G-20. To ensure global economic fora and institutions work together, the Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis. The G-20 thus brings together important industrial and emerging-market countries from all regions of the world. Together, member countries represent around 90 per cent of global gross national product, 80 per cent of world trade (including EU intra-trade) as well as two-thirds of the world's population. The G-20's economic weight and broad membership gives it a high degree of legitimacy and influence over the management of the global economy and financial system
Comments