FAQ

When was the G-20 set up?
Why was the G-20 set up?
How does the G-20 differ from the G-7?
Can all member countries exert equal influence?
What are the criteria for G-20 membership?
How are the G-20 taking forward work remitted to Finance Ministers by Leaders.

1. When was the G-20 set up?

The G-20 first meeting was held in Berlin on December 1516, 1999.

2. Why was the G-20 set up?

The G-20 was created as a response both to the financial crises of the late 1990s and 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 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 G-20 creation in 1999.

3. How does the G-20 differ from the G-7?

The G-7 was established in 1976 as an informal forum of seven major industrial economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America. The G-7 conducts dialogue and seeks agreement on current economic issues on the basis of the comparable interests of those countries. The G-20 was established in 1999 and reflects the diverse interests of the systemically significant industrial and emerging-market economies. (see: About the G-20). It has a high degree of representativeness and legitimacy on account of its geographical composition (members are drawn from all continents) and its large share of global population (two-thirds) and world GNP (around 90 per cent). The G-20's broad representation of countries at different stages of development gives its consensus outcomes greater impact than those of the G-7.

4. Can all member countries exert equal influence?

Achieving consensus is the underlying principle of G-20 activity with regard to comments, recommendations and measures to be adopted. There are no formal votes or resolutions on the basis of fixed voting shares or economic criteria. Every G-20 member has one 'voice' with which it can take an active part in G-20 activity. To this extent the influence a country can exert is shaped decisively by its commitment.

5. What are the criteria for G-20 membership?

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.

6. How are the G-20 taking forward work remitted to Finance Ministers by Leaders.

The G-20 Finance Ministers were tasked from the Pittsburg Summit to take forward work in the following areas;

Framework for Strong, Sustainable, and Balanced Growth
Strengthening the International Financial Regulatory System
Modernizing our Global Institutions to Reflect Today's Global Economy
Reforming the Mandate, Mission, and Governance of the IMF
Reforming the Mission, Mandate, and Governance of Our Development Banks
Energy Security and Climate Change
Strengthening Support for the Most Vulnerable
Putting Quality Jobs at the Heart of the Recovery
An Open Global Economy