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Tags Current Affairs

The G7 grouping

Date: 01 June 2020 Tags: Miscellaneous

Issue

US President Donald Trump said on Saturday that he wanted to include India, Russia, South Korea, and Australia in the G7 group.

 

Background

Last year, the G-7 summit was held on August 24-26 at Biarritz in south-western France, where Prime Minister Narendra Modi was invited to attend as a special guest of French President Emmanuel Macron.

 

Details

  • The G-7 or ‘Group of Seven’ are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues. Canada joined the group in 1976, and the European Union began attending in 1977.

  • Initially formed as an effort by the US and its allies to discuss economic issues, the G-7 forum has deliberated about several challenges over the decades, such as the oil crashes of the 1970s, the economic changeover of ex-Soviet bloc nations, and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.

  • The G-7 was known as the ‘G-8’ for several years after the original seven were joined by Russia in 1997. The Group returned to being called G-7 after Russia was expelled as a member in 2014 following the latter’s annexation of the Crimea region of Ukraine.

  • The G-7 does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding. The rise of India, China, and Brazil over the past few decades has reduced the G-7’s relevance, whose share in global GDP has now fallen to around 40%.

  • The G-20 is a larger group of countries, which also includes G7 members. The G-20 was formed in 1999, in response to a felt need to bring more countries on board to address global economic concerns.

  • Apart from the G-7 countries, the G-20 comprises Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.

  • Together, the G-20 countries make up around 80% of the world’s economy. As opposed to the G-7, which discusses a broad range of issues, deliberations at the G-20 are confined to those concerning the global economy and financial markets. India is slated to host a G-20 summit in 2022.

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