In its2009 summit, the G20 declared itself the primary venue for international economic and financial cooperation.[10] The group's stature has risen during the subsequent decade, and it is recognised by analysts as exercising considerable global influence;[11] it is also criticised for its limited membership,[12] lack of enforcement powers,[13] and for the alleged undermining of existing international institutions.[12] Summits are often met with protests, particularly byanti-globalization groups.[14][15]
The G20 was foreshadowed at theCologne summit of theG7 in June 1999, and formally established at the G7 Finance Ministers' meeting on 26 September 1999 with an inaugural meeting on 15–16 December 1999 in Berlin. Canadian finance ministerPaul Martin was chosen as the first chairman and German finance ministerHans Eichel hosted the meeting.[17]
A 2004 report by Colin I. Bradford andJohannes F. Linn of theBrookings Institution asserted the group was founded primarily at the initiative of Eichel, the concurrent chair of the G7.[18] However, Bradford later described then-Finance Minister of Canada (and futurePrime Minister of Canada) Paul Martin as "the crucial architect of the formation of the G20 at finance minister level", and as the one who later "proposed that the G20 countries move to leaders level summits".[19] Canadian academic and journalistic sources have also identified the G20 as a project initiated by Martin and his American counterpart then-Treasury SecretaryLarry Summers.[20][21][22][23] All acknowledge, however, that Germany and the United States played a key role in bringing their vision into reality.[citation needed]
Martin and Summers conceived of the G20 in response to the series of massivedebt crises that had spread acrossemerging markets in the late 1990s, beginning with theMexican peso crisis and followed by the1997 Asian financial crisis, the1998 Russian financial crisis, and eventually impacting the United States, most prominently in the form of the collapse of the prominent hedge fundLong-Term Capital Management in the autumn of 1998.[20][21][22] It illustrated to them that in a rapidly globalizing world, the G7,G8, and theBretton Woods system would be unable to provide financial stability, and they conceived of a new, broader permanent group of major world economies that would give a voice and new responsibilities in providing it.[20][22]
"Geithner and Koch-Weser went down the list of countries saying, Canada in, Portugal out, South Africa in, Nigeria and Egypt out, and so on; they sent their list to the other G7 finance ministries; and the invitations to the first meeting went out."[24]
The G20's primary focus has been governance of theglobal economy. Summit themes have varied from year to year. The theme of the2006 G20 ministerial 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.
In 2007, South Africa hosted the secretariat withTrevor A. Manuel, South African Minister of Finance as chairperson of the G20.
In 2008,Guido Mantega, Brazil's Minister of Finance, was the G20 chairman and proposed dialogue on competition in financial markets,clean energy, economic development and fiscal elements of growth and development.
On 11 October 2008 after a meeting of G8 finance ministers,US PresidentGeorge W. Bush stated that the next meeting of the G20 would be important in finding solutions to the burgeoningeconomic crisis of 2008.
The Summit of G20 Finance Ministers and Central Bank Governors, who prepare the leaders' summit and implement their decisions, was created as a response both to the2008 financial crisis and to a growing recognition that keyemerging powers were not adequately included in the core of global economic discussion and governance. Additionally, G20 summits ofheads of state orgovernment were held.
After the 2008 debut summit in Washington, DC, G20 leaders met twice a year: inLondon andPittsburgh in 2009, and inToronto andSeoul in 2010.[25]
Since 2011, when France chaired and hosted the G20, the summits have been held only once a year.[26] The 2016 summit was held inHangzhou, China,[27] the 2017 summit was held inHamburg, Germany, the 2018 summit was held inBuenos Aires, Argentina, the 2019 summit was held inOsaka, Japan, the 2020 summit was scheduled inRiyadh, Saudi Arabia but it was held virtually due to COVID-19, the 2021 summit was held inRome, Italy, the 2022 summit was held inBali, Indonesia and the 2023 summit was held inNew Delhi, India. The 2024 Group of 20 (G20) Summit will take place from 18-19 November inRio de Janeiro, Brazil.[28]
Several other ministerial-level G20 meetings have been held since 2010. Agriculture ministerial meetings were conducted in 2011 and 2012; meetings of foreign ministers were held in 2012 and 2013; trade ministers met in 2012 and 2014, and employment ministerial meetings have taken place annually since 2010.[29]
In 2012, the G20 Ministers of Tourism and Heads of Delegation of G20 member countries and other invited States, as well as representatives from the World Travel and Tourism Council (WTTC), World Tourism Organization (UNWTO) and other organisations in the Travel & Tourism sector met in Mérida, Mexico, on May 16 at the 4th G20 meeting and focused on 'Tourism as a means to Job Creation'. As a result of this meeting and The World Travel & Tourism Council's Visa Impact Research, later on the Leaders of the G20, convened in Los Cabos on 18–19 June, would recognise the impact of Travel & Tourism for the first time. That year, the G20 Leaders Declaration added the following statement: "We recognise the role of travel and tourism as a vehicle for job creation, economic growth and development, and, while recognizing the sovereign right of States to control the entry of foreign nationals, we will work towards developing travel facilitation initiatives in support of job creation, quality work, poverty reduction and global growth."[30]
In March 2014, the former Australian foreign ministerJulie Bishop, when Australia was hosting the 2014 G20 summit inBrisbane, proposed to banRussia from the summit over itsannexation of Ukrainian Crimea.[31] TheBRICS foreign ministers subsequently reminded Bishop that "the custodianship of the G20 belongs to all Member States equally and no one Member State can unilaterally determine its nature and character."
The 2015 G20 Summit inAntalya, Turkey, focused on "Inclusiveness, Investment, and Implementation," gathering leaders to address global economic challenges, development,climate change, and urgent issues like terrorism and refugees. Key outcomes included the Antalya Action Plan and commitments tofinancial stability, tax regulation, andenergy policy.[32][33]
In 2016, the G20 framed its commitment to the 2030 Agenda,Sustainable Development Goals in three key themes; the promotion of strong sustainable and balanced growth; protection of the planet from degradation; and furthering co-operation with low-income anddeveloping countries. At the G20 Summit in Hangzhou, members agreed on an action plan and issued a high level principles document to member countries to help facilitate the agenda's implementation.[34][35]
Japan hosted the 2019 summit,[36] The2020 summit was to be held in Saudi Arabia,[37] but was instead held virtually on 21–22 November 2020 due to the COVID-19 pandemic under the presidency of Saudi Arabia.2021 G20 Rome summit which was held in Rome, the capital city ofItaly, on 30–31 October 2021.
Indonesia held the2022 summit in November 2022. During its presidency, Indonesia focused on the global COVID-19 pandemic and how to collectively overcome the challenges related to it. The three priorities of Indonesia's G20 presidency were global health architecture, digital transformations, and sustainable energy transitions.[38] The G20 Presidency of Indonesia, in partnership with the Pandemic Fund secretariat, also officially launched the Pandemic Fund at a high-level event. The Pandemic Fund to be expected as a key part of the solution for reducing risks from epidemics and pandemics in the most vulnerable parts of the world and contributing to a healthier and safer world[39]
Azali Assoumani, President of the African Union, is greeted by Narendra Modi, G20 Chairman, at the G20 summit in 2023.
India held the2023 summit in September 2023.[40] The presidency's theme wasVasudhaiva Kutumbakam (Sanskrit:वसुधैव कुटुम्बकम्;English:"One Earth, One Family, One Future"[c]).[41][42] In an interview on 26 August 2023, Prime MinisterNarendra Modi expressed optimism about the G20 countries' evolving agenda under India's presidency, shifting toward a human-centric development approach that aligns with the concerns of theGlobal South, including addressingclimate change,debt restructuring through the G20's Common Framework for debt, and a strategy for regulation of globalcryptocurrencies. G20 expanded by the inclusion ofAfrican Union, it is also the first inclusion since 1999.[43][44][45]
TheBrazilian presidency launched the G20 Social, a place where for the first time the organization will bring the civil society into the debate where it can participate and contribute to discussions and policy formulations regarding to the summit.[46]
To decide which member nation gets to chair the G20 leaders' meeting for a given year, all country members are assigned to one of five different groupings, with all but one group having four members, the other having three. States from the same region are placed in the same group, except Group 1 and Group 2. All countries within a group are eligible to take over the G20 Presidency when it is their group's turn. Therefore, the states within the relevant group need to negotiate among themselves to select the next G20 President. Each year, a different G20 member country assumes the presidency starting from 1 December until 30 November. This system has been in place since 2010, when South Korea, which is in Group 5, held the G20 chair. The table below lists the nations' groupings:[47][48]
The G20 operates without a permanent secretariat or staff. The group's chair (the presidency) rotates annually among the members and is selected from a different regional grouping of countries. The incumbent chair establishes a temporary secretariat for the duration of its term, which coordinates the group's work and organizes its meetings. Together with the previous and following presidency a so-calledtroika is formed, to provide a smooth transition of secretariat functions.[50]
Additionally because of the lacking of a permanent secretariat the G20 has been relying on theOECD for more institutional competences substituting permanent secretariat functions.[52]
Representatives include, at the leaders' summits, the leaders of nineteen countries, the African Union and of the European Union, and, at the ministerial-level meetings, the finance ministers and central bank governors of nineteen countries, the African Union and of the European Union.
In addition, each year, the G20's guests include Spain;[56] the Chair of ASEAN; a representative of theNew Partnership for Africa's Development (NEPAD) and a country (sometimes more than one) invited by the presidency, usually from its own region.[57][58][59]
The first of the tables below lists the member entities and their leaders, finance ministers andcentral bank governors. The second table lists relevant statistics such as population and GDP figures for each member, as well as detailing memberships of other international organizations, such as theG7,BRICS andMIKTA. Total GDP figures are given in millions of US dollars.
The G20's membership does not reflect exactly the 21 largest economies of the world in any given year; as the organization states:[1]
In a forum such as the G20, 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 G20 membership and the composition of the group has remained unchanged since it was established. Because of the objectives of the G20, 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.
A 2011 report released by theAsian Development Bank (ADB) predicted that large Asian economies such as China and India would play a more important role in global economic governance in the future. The report claimed that the rise of emerging market economies heralded a new world order, in which the G20 would become the global economic steering committee.[72] The ADB furthermore noted that Asian countries had led the global recovery following thelate-2000s recession. It predicted that the region would have a greater presence on the global stage, shaping the G20's agenda for balanced and sustainable growth through strengthening intraregional trade and stimulating domestic demand.[72]
G20 members (dark blue), countries represented through the European Union and African Union (light blue) and previously invited states (pink) as of 2024.
The initial G20 agenda, as conceived by US, Canadian and German policymakers, was very much focused on the sustainability ofsovereign debt and global financial stability, in an inclusive format that would bring in the largest developing economies as equal partners. During a summit in November 2008, the leaders of the group pledged to contribute trillions to international financial organizations, including the World Bank and IMF, mainly for re-establishing the global financial system.[75][76]
The G20 has led theDebt Service Suspension Initiative, through which official bilateral creditors suspended debt repayments of 73 of the poorest debtor countries.[78]: 134
The G20 countries account for almost 75% of the global carbon emissions and promised in 2009 to phase out 'inefficient subsidies'. Despite these promises G20 members have subsidised fossil fuel companies over $3.3 trillion between 2015 and 2021,[79] with several states increasing subsidies; Australia (+48.2%), the US (+36.7%), Indonesia (+26.6%), France (+23.8%), China (+4.1%), Brazil (+3.0%), Mexico (+2.6%).[79] China alone generates over half of the coal-generated electricity in the world.[83]
Wolfgang Schäuble, GermanFederal Minister of Finance, had insisted on the interconnected nature of the issues facing G20 countries, be they purely financial or developmental, and the need to reach effective,cross-cutting policy measures: "Globalization has lifted hundreds of millions out of poverty, but there is also a growing rise in frustration in some quarters […] development, [national] security and migration are all interlinked"[80]
The G20 engagement groups and pre-conferences are independent collectives that are led by organisations of the host country. They represent a diverse group of stakeholders and work collectively to develop non-binding policy recommendations formally submitted to the G20 leaders for consideration.
For the 2022 G20 hosted by Indonesia, there are10 engagement groups formed to facilitate independent stakeholders in developing proposals and policy recommendations for G20 leaders.
Startup20 and other few engagement groups initiated under the G20 India Presidency of 2023.[84]
The G20's prominent membership gives it a strong input on global policy despite lacking any formal ability to enforce rules. There are disputes over the legitimacy of the G20,[85] and criticisms of its organisation and the efficacy of its declarations.[86]
The G20's transparency and accountability have been questioned by critics, who call attention to the absence of a formal charter and the fact that the most important G20 meetings are closed-door.[87] In 2001, the economistFrances Stewart proposed an Economic Security Council within the United Nations as an alternative to the G20. In such a council, members would be elected by theGeneral Assembly based on their importance to the world economy, and the contribution they are willing to provide to world economic development.[88]
The cost and extent of summit-related security is often a contentious issue in the hosting country, and G20 summits have attracted protesters from a variety of backgrounds, includinginformation activists, opponents offractional-reserve banking andanti-capitalists. In 2010, the Toronto G20 summit sparkedmass protests and rioting, leading to the largest mass arrest in Canada's history.[89]
Although the G20 has stated that the group'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",[90] its legitimacy has been challenged. A 2011 report for theDanish Institute for International Studies criticised the G20's exclusivity, particularly highlighting its underrepresentation of African countries and its practice of inviting observers from non-member states as a mere "concession at the margins", which does not grant the organisation representational legitimacy.[91] Concerning the membership issue, US PresidentBarack Obama noted the difficulty of pleasing everyone: "Everybody wants the smallest possible group that includes them. So, if they're the 21st largest nation in the world, they want the G-21, and think it's highly unfair if they have been cut out."[92] Others stated in 2011 that the exclusivity is not an insurmountable problem and proposed mechanisms by which it could become more inclusive.[93]
In line with Norway's emphasis on inclusive international processes, the United Nations, and the UN system, in a 2010 interview withDer Spiegel, the current prime minister of NorwayJonas Gahr Støre called the G20 "one of the greatest setbacks since World War II"[12] as 173 states who are all members of the UN are not among the G20. This includes Norway, a major developed economy and the seventh-largest contributor to UN international development programs,[94] which is not a member state of the EU, and thus is not represented in the G20 even indirectly.[12] Norway, like other such states, has little or no voice within the group. Støre argued that the G20 undermines the legitimacy of international organizations set up in the aftermath of World War II, such as the IMF, World Bank and United Nations:
The G20 is a self-appointed group. Its composition is determined by the major countries and powers. It may be more representative than the G7 or the G8, in which only the richest countries are represented, but it is still arbitrary. We no longer live in the 19th century, a time when the major powers met and redrew the map of the world. No one needs a newCongress of Vienna.[12]
However, Norway, has moderated this position in practice, and has contributed to a number of G20-work streams for years, in particular on health, energy and climate. Under the government ofErna Solberg, Norway attended the2017 G20 summit in Hamburg, Germany.[95]
Spain is the world'sfifteenth largest economy bynominal GDP (thesixteenth largest bypurchasing power parity), the fourth in the European Union, and the second amongSpanish-speaking countries. In addition, since the 1990s several Spanish companies have gained multinational status, and Spain is an important foreign investor worldwide. Its numbers[clarification needed] exceed the numbers of several current members of the G20 such as Argentina or South Africa. This has led to what Henleyet al consider to be a de facto position as a member of the G20. However, Spain, a permanent guest, does not plan to request official membership.[56]
In contrast with the Spanish position, thePolish government has repeatedly asked to join the G20.
Before the2009 G20 London summit, the Polish government expressed an interest in joining with Spain and the Netherlands and condemned an "organisational mess" in which a few European leaders spoke in the name of the collective EU without legitimate authorisation in cases which belong to theEuropean Commission.[citation needed]
During a 2010 meeting with foreign diplomats, Polish presidentLech Kaczyński said:
The Polish economy is according to our data the 18th world economy. The place of my country is among the members of the G20. This is a very simple postulate: firstly – it results from the size of thePolish economy, secondly – it results from the fact that Poland is the biggest country in its region and the biggest country that has experienced a certain story. That story is a political and economic transformation.[96]
In 2012, Tim Ferguson wrote inForbes that swapping Argentina for Poland should be considered, claiming that the Polish economy was headed toward a leadership role in Europe and its membership would be more legitimate.[97][98] A similar opinion was expressed by Marcin Sobczyk in theWall Street Journal.[99] Mamta Murthi from the World Bank said: "To be in 'a club', what Poland can do is to continue working as if it already is in the club it wants to join."[100]
In 2014, consulting companyErnst & Young published its report about optimal members for G20. After analyzing trade, institutional and investment links Poland was included as one of the optimal members.[101]
G20 membership has been part of the look program of Poland'sLaw and Justice party and PresidentAndrzej Duda.[102] In March 2017, Deputy Prime Minister of PolandMateusz Morawiecki took part in a meeting of G20 financial ministers inBaden-Baden as the first Polish representative.[103][104]
In June 2010, Singapore's representative to the United Nations warned the G20 that its decisions would affect "all countries, big and small", and asserted that prominent non-G20 members should be included in financial reform discussions.[105] Singapore thereafter took a leading role in organizing theGlobal Governance Group (3G), an informal grouping of 30 non-G20 countries (including severalmicrostates and manyThird World countries) to collectively channel their views into the G20 process more effectively.[106][107][108] Singapore's chairing of the 3G was cited as a rationale for inviting Singapore to the November 2010 G20 summit in South Korea,[109] as well as 2011, 2013, 2014, 2015, 2016, and 2017 summits.[citation needed]
The American magazineForeign Policy has published articles condemning the G20, in terms of its principal function as an alternative to the supposedly exclusive G8. It questions the actions of some of the G20 members and advances the notion that some states should not have membership in the first place. Furthermore, with the effects of theGreat Recession still ongoing, the magazine has criticized the G20's efforts to implement reforms of the world's financial institutions, branding such efforts as failures.[110]
In March 2022, following theRussian invasion of Ukraine, U.S. PresidentJoe Biden called for the removal of Russia from the group. Alternatively, he suggested that Ukraine be allowed to attend the G20 2022 summit, despite its lack of membership.[111] Canadian Prime MinisterJustin Trudeau also said the group should "re-evaluate" Russia's participation.[112] Russia claims it would not be a significant issue, as most G20 members are already fighting Russia economically due to the war.[113] China suggested that expelling Russia would be counterproductive.[111] In November 2022, Indonesia and Russia stated that Vladimir Putin would not attend the G20 summit in person, but may attend virtually.[114] During the 2022 summit, Ukrainian presidentVolodymyr Zelenskyy appeared in a video statement and repeatedly addressed the assembly as the 'G19' as a means of indicating his viewpoint that Russia should be removed from the group.[115]Despite the group refusing criticism on Russia directly in 2023 for the war, Putin was not present at the G20 summit due to the arrest warrant issued by the ICC in 2024.[116][117]
^abcdHenley, Peter H.; Blokker, Niels M."The Group of 20: A Short Legal Anatomy"(PDF).Melbourne Journal of International Law.14: 568.Archived(PDF) from the original on 17 May 2017. Retrieved23 October 2018.Spain's peculiar but seemingly secure position within the G20 also appears to have facilitated their greater participation in the G20's work: Spain is the only outreach participant to have made policy commitments comparable to those of G20 members proper at summits since Seoul. Spain therefore appears to have become a de facto member of the G20.
^Liao, Rebecca (September 2016)."The End of the G-20".Foreign Affairs.Archived from the original on 12 May 2022. Retrieved20 July 2017. – via Foreign Affairs(subscription required)
^Berensmann, Kathrin; Fues, Thomas; Volz, Ulrich (January 2011)."Informal power centre".D+C. Archived fromthe original on 1 January 2011. Retrieved3 December 2012.
^Kamila Wronowska (2 March 2010)."Polska w G-20 – warto się bić?" [Poland in the G-20 – is it worth the fight?].dziennik.pl (in Polish).Archived from the original on 2 April 2015. Retrieved23 March 2015.
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