BackgrounderBackgrounder
On September 25, 1999, in Washington, D.C., the finance ministers of the Group of Seven (G-7) leading industrialized nations announced the creation of the Group of Twenty (G-20). This international forum of finance ministers and central bank governors includes 19 countries, the European Union and the Bretton Woods Institutions (the International Monetary Fund (IMF) and the World Bank).
Established in the wake of the emerging markets financial crisis of the late 1990s, the G-20 was intended as a forum to discuss, study and review policy issues among industrialized countries and emerging markets with a view to promoting international financial and economic stability. These issues were at the top of the group’s agenda when it held its first meeting in Berlin in December 1999.
At the Montréal Ministerial held in October 2000, the group broadened its agenda to consider and address challenges posed by increasing international integration, or globalization. Most recently, the tragic events of September 11, 2001, have accelerated efforts by the G-20 governments to develop and co-operate on measures to combat the financing of terrorism. At their most recent meeting, held in Ottawa in November 2001, ministers and governors agreed on an Action Plan to combat the financing of terrorism.
Member countries include: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, Korea, Turkey, the United Kingdom and the United States.
The finance minister of the country holding the (rotating) Presidency of the European Union, the President of the European Central Bank, the Managing Director of the IMF, the President of the World Bank, and the chairpersons of the International Monetary and Financial Committee of the IMF and the Development Committee of the IMF and World Bank also participate fully in discussions.
Finance Minister Yashwant Sinha of India assumed the 2002 chairmanship of the group on March 1. Minister Sinha succeeded Finance Minister Paul Martin of Canada, who was the inaugural chair of the G-20 from December 1999 through February 2002.
Through broad participation by industrialized countries and key emerging markets, the G-20 represents a range of viewpoints. Like the G-7, but unlike larger international organizations such as the United Nations, the World Bank and the IMF, the G-20 has no permanent secretariat. The size and structure of the G-20 is designed to encourage the informal exchange of views and the formation of consensus on international issues.
The G-20 complements the activities of other international organizations:
Since 1986 the G-7 finance ministers’ grouping has proven to be an effective forum for informal and substantive discussion of important international economic issues, leading to greater understanding and co-ordination among policy makers in the G-7 countries.
The lack of emerging market representation in the G-7 limits its ability to deal with some issues related to developments in the international economy and financial system. In today’s economy broader representation in policy discussions is crucial. The G-20 is designed to fulfill this need for representation from emerging markets.
In his April 27, 1999, remarks to the Interim Committee of the IMF, Minister Martin highlighted the need for more representative institutional arrangements. This need was further reflected in the June 1999 Report of G-7 Finance Ministers to the Köln Summit on Strengthening the International Financial Architecture.
Prior to the creation of the G-20, ad hoc groupings known as the G-22 and G-33 were convened to help address specific issues related to the emerging markets financial crisis of the late 1990s, but were not integrated with the governance structures of the IMF or World Bank.
The useful suggestions for enhancing global economic security that emanated from the G-22 and G-33 processes demonstrated the potential value of a regular international consultative forum with a broader membership than the G-7. The creation of the G-20 represents the next stage in the evolution of informal consultation among industrialized countries and emerging markets.
Like the G-7, the G-20 does not have a permanent secretariat. Instead, the chair country provides support.
Meetings of finance ministers and central bank governors are held every year. The most recent meeting of G-20 ministers and governors was held in Ottawa on November 16-17, 2001. Ministers’ and governors’ deputies meet from time to time to prepare for the ministerial meetings.
Ministerial meetings of the G-20 include the finance ministers, deputy finance ministers and central bank governors of the member countries.
As well, the finance minister of the country holding the Presidency of the European Union and the President of the European Central Bank participate. The Managing Director of the IMF, the President of the World Bank, and the ministers chairing the International Monetary and Financial Committee of the IMF and the Development Committee of the IMF and World Bank are also included as full members of the group.
- Français - Who We Are / What
We Do.
Updated: 2002-01-09.