What is the G20 summit?

The G20 (or Group of Twenty) is an international forum for the governments and central
bank governors from Argentina, Australia, Brazil, Canada, China, the European Union,
France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South
Africa, South Korea, Turkey, the United Kingdom, and the United States. Founded in 1999
with the aim to discuss policy pertaining to the promotion of international financial
stability,[3] the G20 has expanded its agenda since 2008 and heads of government or heads
of state, as well as finance ministers and foreign ministers, have periodically conferred at
summits ever since. It seeks to address issues that go beyond the responsibilities of any one
organization.[3]

Membership of the G20 consists of 19 individual countries plus the European Union (EU).
The EU is represented by the European Commission and by the European Central Bank.
Collectively, the G20 economies account for around 85% of the gross world product
(GWP), 80% of world trade (or, if excluding EU intra-trade, 75%), two-thirds of the world
population,[2] and approximately half of the world land area.

With the G20 growing in stature[4] after its inaugural leaders' summit in 2008, its leaders
announced on 25 September 2009 that the group would replace the G8 as the main
economic council of wealthy nations.[5] Since its inception, the G20's membership policies
have been criticized by numerous intellectuals,[6][7] and its summits have been a focus for
major protests by left-wing groups and anarchists.[8]

The heads of the G20 nations met semi-annually at G20 summits between 2009 and 2010.
Since the November 2011 Cannes summit, all G20 summits have been held annually.

The 2018 G20 Buenos Aires summit will be the 13th meeting of Group of Twenty (G20).
It will be held in 2018 in the city of Buenos Aires, Argentina,[1][2] the first G20 summit to
be hosted in South America.

Founding

The G20 is the latest in a series of post–World War 2 initiatives aimed at international
coordination of economic policy, which include institutions such as the "Bretton Woods
twins", the International Monetary Fund and the World Bank, and what is now the World
Trade Organization.[10]

The G20 was foreshadowed at the Cologne Summit of the G7 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 minister Paul Martin was
chosen as the first chairman and German finance minister Hans Eichel hosted the inaugural
meeting.[11]

A 2004 report by Colin I. Bradford and Johannes F. Linn of the Brookings Institution
asserted the group was founded primarily at the initiative of Eichel, the concurrent chair of
the G7.[12] However, Bradford later described then-Finance Minister of Canada (and future
Prime Minister of Canada) Paul Martin as "the crucial architect of the formation of the G-
20 at finance minister level," and as the one who later "proposed that the G-20 countries
move to leaders level summits."[13] Canadian academic and journalistic sources have also
identified the G20 a project initiated by Martin and then-US Treasury Secretary Larry
Summers.[14][15][16][17] All acknowledge, however, that Germany and the United States
played a key role in bringing their vision into reality.

Martin and Summers conceived of the G20 in response to the series of massive debt crises
that had spread across emerging markets in the late 1990s, beginning with the Mexican
peso crisis and followed by the 1997 Asian financial crisis, the 1998 Russian financial
crisis, and eventually impacting the United States, most prominently in the form of the
collapse of the prominent hedge fund Long-Term Capital Management in the autumn of
1998.[14][15][16] It illustrated to them that in a rapidly globalizing world, the G7, G8, and the
Bretton 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.[14][16]

The G20 membership was decided by Eichel's deputy Caio Koch-Weser and Summers'
deputy Timothy Geithner. According to the political economist Robert Wade:

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.

The G-20 is the G-7 plus developing nations such as Brazil, China, India, and Russia. The
G-20's members represent two-thirds of the world's people and 85 percent of its economy.
Since 2007, the media has covered each G-20 summit. That recognizes the members' role
as significant drivers of the world economy.

The G-20's primary mandate is to prevent future international financial crises. It seeks to
shape the global economic agenda. It lends the perspective of Asian and Latin American
growing economies. That "broadens the scope of international economic and financial
cooperation."

The finance ministers and central bank governors of the G-20 countries meet twice a
year. They meet at the same time as the International Monetary Fund and the World Bank.

In 1999, these ministers and governors created the G-20. They needed dialogue between
developing and developed countries. They were responding to the 2007 Asian currency
crisis. The meetings started as an informal get-together of finance ministers and central
bankers.

2018 Summit Meeting

The 2018 summit will be held in Buenos Aires, Argentina, on November 30 to December
1, 2018. U.S. President Donald Trump and China's President Xi Jinping have planned a
one-on-one during the summit to discuss the ongoing trade war. If the meeting doesn't go
well, Trump is prepared to announced additional tariffs on imports from China. Trump
cancelled a meeting with Russian President Vladimir Putin to protest Russia's attack on
Ukraine.

2017 Summit Meeting

July 7-8, 2017: Hamburg, Germany. The meeting focused on climate change and global
trade. It made little progress. President Trump opposed the views of the other 19
countries. Trump had pulled out of the Paris Climate Agreement. The other G-20 members
will hold a follow-up climate summit in December to move forward. Trump also threatened
to impose trade restrictions on steel. That could start a trade war. He said there is a supply
glut. The G-20 agreed to share information about steel production.

It will publish a formal report by November.

The G-20 agreed to eliminate safe havens for terrorism financing. It will ask the private
sector to help. It will address conflicts in North Korea, Syria, and Ukraine.

On July 7, Trump and Putin privately met for two hours. When Trump asked about Russia's
meddling in the 2016 presidential election, Putin denied it. They agreed to a limited cease-
fire in Syria.

Previous Summit Meetings

September 4-5, 2016, Hangzhou, China. Both the United States and China agreed to ratify
the Paris climate change agreement. They are the two worst emitters of greenhouse
gases. Russia and the United States did not agree on ending the Syrian war. China
complained that other countries should allow more free trade. But China has become more
protectionist itself.

November 15-16, 2015, Antalya, Turkey. The meeting focused on responding to the
terrorist attacks in Paris. The members agreed to tighten border surveillance against threats.
At the same time, they would admit refugees who were escaping the war against the Islamic
State group. The United States agreed to share more intelligence with France and other
members. It wouldn't send in ground troops. But it would support Syrian and Iraqi forces
fighting the Islamic State group. They outlined further steps to cut off financing for the
Islamic State group.

November 15 -16, 2014, Brisbane, Queensland, Australia. The meeting condemned

Russia's attack on Ukraine. All members promised to work together to increase global GDP
growth to 2.1 percent by 2018. That would add $2 trillion to global economies. The United
States and Europe pressured the group to take strong action on climate change. That was
not on the official agenda. The leaders vowed to do all they could to combat Ebola in West
Africa. President Obama met with the leaders of Japan and Australia.

They agreed to work toward the peaceful resolution of maritime disputes in the South
China Sea.

September 5-6, 2013, St. Petersburg, Russia. Unofficially, the meeting focused on a
response to Syria's chemical weapons attack. President Obama sought support for a U.S.
strike, while others argued for economic sanctions. Russia supports the Syrian government
with arms and trade. China is concerned about an increase in oil prices. France, Turkey and
Saudi Arabia support an air strike. Officially, the leaders focused on spurring global
economic growth. The BRIC countries sought G-20 action to reinvigorate their economies.

They were pummeled by a withdrawal of foreign direct investment.

June 18-19, 2012, Los Cabos, Mexico. The summit focused on the eurozone debt crisis.
The G-20 pressured German Chancellor Angela Merkel to work with other European
Union leaders. They wanted a more sustainable Grand Plan to resolve the Greece debt
crisis. Germany wouldn't bail out Greece without austerity measures. That's because
German taxpayers ultimately face higher costs to fund the bailout. Germany itself is already
highly indebted. Germany pushed for a fiscal union to support the EU's monetary union.

That meant EU members would give up political control of their budgets to an EU-wide
approval process. This was necessary before she would support Euro-wide bonds.

November 2-4, 2011, Cannes. France. The summit addressed the Greek debt crisis.
Members agreed on plans to create jobs.

November 11-12, 2010, Seoul, South Korea. In advance of the G-20 meeting, Finance
Ministers pledged to stop the currency wars. They occurred primarily between China and
the United States. These wars could create global inflation in food, oil prices, and other
commodities. U.S.Treasury Secretary Tim Geithner pledged the United States would not
flood the market with Treasurys. That would have driven down the value of the dollar.
Emerging market countries agreed to let the forex market determine their currency values.

That means they would let them rise, if necessary. This drove the dollar down and the stock
market up. Forex traders had hoped for a more substantial pledge by the United States and
China to keep their currencies strong. Instead, the Federal Reserve will buy more
Treasurys. That will keep interest rates and the dollar low. Traders sold dollars, driving its
value down. In response, the Dow rose one percent. A falling dollar value makes U.S.
stocks cheaper to foreigners. G-20 members agreed to transfer 6 percent of voting power in
the IMF to emerging market countries.

That further shifted the balance of power away from the G-7 nations.

June 26-27, 2010, Toronto, Canada. Leaders agreed to cut their budget deficits in half by
2013. They promised to eliminate deficits three years later.

April 1-2, 2009, London, United Kingdom. G-20 leaders pledged $1 trillion to the IMF and
World Bank to help emerging market countries ward off the effects of the recession.
They promised $250 billion in trade finance. They also agreed to develop new
financial regulations, create a supervisory body, and crack down on hedge funds. As a
result, the Dow rose over 240 points, rising above 8,000 for the first time in two months.
September 24-25, 2009, Pittsburgh, United States. Leaders established a new Financial
Stability Board. It would develop standard financial regulations for all G-20 countries. The
Board will work with the World Bank and the IMF. They have been subcontracted to
implement many of these policies. They agreed to increase banks' capital requirements.
They decided to tie executive pay to long-term, not short-term, performance. They also
wanted to move all derivatives contracts onto electronic exchanges.

That way, they can be better monitored. Finally, they suggested that companies that are
"too big to fail," like AIG, develop international contingency plans. That would make sure
their collapse wouldn't threaten the entire global economy.

November 16-17, 2008, Washington, DC. The G-20 held its first-ever summit. Before this
meeting, the G-7 guided most global economic plans. The topic was the 2008 financial
crisis. Emerging market leaders asked the United States to regulate its financial markets
better. The United States refused. The leaders also wanted better regulation of hedge
funds and debt-rating companies such as Standard & Poors. They also sought to strengthen
standards for accounting and derivatives. One of the causes of the financial crisis was
insufficient regulations and standards.

G-20 Member Nations

The G-20 members include the G-7 nations: Canada, France, Germany, Italy, Japan, the
UK and the United States. This group of countries also meets on their own.

There are eleven emerging market and smaller industrialized countries. They are Argentina,
Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa,
South Korea and Turkey. The EU is also a member of the G-20.

Why the G-20 Is Important

The growth of Brazil, Russia, India and China (the BRIC countries) has driven the growth
of the global economy. The G-7 countries grow slower. Therefore, the BRIC countries are
critical for ensuring continued global economic prosperity.

In the past, the leaders of the G-7 could meet and decide on global economic issues without
much interference from the BRIC countries. But these countries have become more critical
in providing the needs of the G-7 nations. For example, Russia delivers most of the natural
gas to Europe. China produces much of the manufacturing for the United States. India
provides high-tech services.

G-20 Protests

G-20 meetings are usually the site of protests against the G-20 agenda. They claim the
group focuses too much on financial interests and globalization. Protesters want the G-20
leaders to focus on one or more of these issues:

 Poverty. The Ontario Coalition Against Poverty leader John Clarke said, “The
whole process of putting together this grouping has been about impoverishing
people, and benefiting the richest members of society.” In 2010, protesters were
against the G-20's focus on fiscal responsibility and austerity at the cost of social
programs. They also were opposed to the $1 billion cost of the meeting itself, which
was borne by Canadian taxpayers.
 Climate Change. Protesters wanted the G-20 to refocus on global warming as a
priority.

 Gender Equality. G-20 countries need to pay more attention to rights for the LGBT
community. They ask for more funding for family planning, including abortions.
 Immigration. Protesters sought more open borders for immigrants fleeing
"humanitarian and climate crises." (Source: "What the G-20 Protests Are Really
About," Alixandra Gould, The Faster Times, June 27, 2010.)