The role of the G20 in creating the foundation for global economic stability, a vital catalyst for economic development and implementing consequential global commitments such as the Pact for the Future and the 2030 Agenda for Sustainainable Development (Agenda 2030) cannot be overstated.
The role of the G20 in creating the foundation for global economic stability, a vital catalyst for economic development and implementing consequential global commitments such as the Pact for the Future and the 2030 Agenda for Sustainainable Development (Agenda 2030) cannot be overstated.
Inception of the G20
It was founded in 1999 after the Asian financial crisis of 1997 – 1998 as an informal forum for the Finance Ministers and Central Bank Governors of the most important industrialised and developing economies to discuss international economic and financial stability.
The forum initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter-alia include trade, climate change, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption.
It comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom, and United States) and two regional bodies, namely the European Union (EU) and African Union (AU).
The G20 members represent around 85% of the global Gross Domestic Product, over 75% of the global trade, and about two-thirds of the world population.
Elevation to Leaders' Level
The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and in 2009, when it became apparent that the necessary crisis coordination would only be possible at the highest political level. Since then, the G20 Leaders have met regularly, and the G20 has become the premier forum for international economic cooperation.
The Presidency of the G20
The G20 does not have a permanent secretariat or staff. Instead, the G20 Presidency rotates annually among the members and is selected from a different regional grouping of countries. The 19 member countries are therefore divided up into five groups comprising a maximum of four countries each. Most of the groups are formed on a regional basis, that is countries from the same region are usually put in the same group. Only Group 1 (Australia, Canada, Saudi Arabia and the United States) and Group 2 (India, Russia, South Africa and Türkiye) do not follow this pattern. Group 3 includes Argentina, Brazil, and Mexico; Group 4 includes France, Germany, Italy, and United Kingdom; and Group 5 includes China, Indonesia, Japan, and Republic of Korea. The EU and the AU are not members of any of these regional groups.
Each year another country from a different group assumes the G20 Presidency. The countries in a group are each equally entitled to take on the Presidency when it is their group’s turn. The G20 Presidency is responsible for bringing together the G20 agenda in consultation with other members and in response to developments in the global economy. To ensure continuity, the Presidency is supported by a “troika” made up of the current, immediate past and next host countries. During South Africa’s Presidency, the members of the G20 troika are Brazil, South Africa and the United States.
Guest Countries & Invited International Organisations
The G20 does not have a permanent secretariat or staff. Instead, the G20 Presidency rotates annually among the members and is selected from a different regional grouping of countries. The 19 member countries are therefore divided up into five groups comprising a maximum of four countries each. Most of the groups are formed on a regional basis, that is countries from the same region are usually put in the same group. Only Group 1 (Australia, Canada, Saudi Arabia and the United States) and Group 2 (India, Russia, South Africa and Türkiye) do not follow this pattern. Group 3 includes Argentina, Brazil, and Mexico; Group 4 includes France, Germany, Italy, and United Kingdom; and Group 5 includes China, Indonesia, Japan, and Republic of Korea. The EU and the AU are not members of any of these regional groups.
Each year another country from a different group assumes the G20 Presidency. The countries in a group are each equally entitled to take on the Presidency when it is their group’s turn. The G20 Presidency is responsible for bringing together the G20 agenda in consultation with other members and in response to developments in the global economy. To ensure continuity, the Presidency is supported by a “troika” made up of the current, immediate past and next host countries. During South Africa’s Presidency, the members of the G20 troika are Brazil, South Africa and the United States.
G20 Structure
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Headed by a Sherpa who is the representative of the Leader.
Focus areas: Socio-economic issues such as agriculture, anti-corruption, climate, digital economy, education, employment, energy, environment, health, tourism, trade and investment. The Working Groups under this track include:
- Agriculture Working Group
- Anti-corruption Working Group
- Culture Working Group
- Development Working Group
- Digital Economy Working Group
- Disaster Risk Reduction Working Group
- Education Working Group
- Employment Working Group
- Energy Transitions Working Group
- Environment and Climate Sustainability Working Group
- Health Working Group
- Tourism Working Group
- Trade and Investment Working Group
Headed by the Finance Ministers and Central Bank Governors, who generally meet four times a year, with two meetings being held on the side-lines of WB/IMF meetings.
Focus areas: Fiscal and monetary policy issues such as the global economy, infrastructure, financial regulation, financial inclusion, international financial architecture, and international taxation. The Working Groups and Workstreams under this track include:
- Framework Working Group
- International Financial Architecture Working Group
- Infrastructure Working Group
- Sustainable Finance Working Group
- Global Partnership for Financial Inclusion
- Joint Finance and Health Task Force
- International taxation Issues
- Financial Sector Issues
As part of the G20 members’ commitment to consult relevant stakeholder communities, dialogue is facilitated through the engagement groups, comprising nongovernment participants from each G20 member. These groups often draft recommendations to the G20 Leaders that contribute to the policy-making process. The engagement groups are as follows:
- Business20
- Civil20
- Labour20
- Parliament20
- Science20
- SAI20
- Startup20
- Think20
- Urban20
- Women20
- Youth20