G20: Shaping the Global Economy

The Group of Twenty (G20) is an international forum comprising the world's major economies. Explore the
origins, purpose, and key achievements of the G20, and delve into its role in addressing global challenges and
fostering economic coordination.

S by Sanjana Singh
Definition and Purpose of G20
The G20 is a premier forum for international economic cooperation. Founded in 1999, it aims to promote global
economic growth, stability, and development. By bringing together key decision-makers and experts, the G20
fosters dialogue and collaboration on pressing economic issues.
History of G20
The G20 had its humble beginnings as a response to the Asian financial crisis in the late 1990s. Initially, it
comprised finance ministers and central bank governors from 19 countries plus the European Union. Over the
years, it evolved into a leader-level summit, gaining prominence as a crucial platform for global economic
governance.
Membership of G20
The G20 consists of 19 individual countries plus the European Union, representing over 85% of the global GDP.
Membership is based on economic significance, ensuring broad representation across different regions.
Currently, key participants include the United States, China, Germany, Japan, and India.
Role and Responsibilities of G20
The G20 plays a vital role in coordinating macroeconomic policies, fostering global financial stability, and
facilitating international trade. Moreover, it addresses pressing global challenges, such as climate change,
gender equality, and sustainable development. The G20's collaborative approach ensures the formulation of
effective and inclusive policy responses.
Key Summits and Outcomes
1 London Summit 2009
The G20 responded collectively to tackle the global financial crisis, emphasizing
the need for fiscal stimulus and financial regulatory reforms.

2 Hamburg Summit 2017

This summit focused on issues like climate change, trade, and sustainable
development, reaffirming the G20's commitment to multilateralism.

3 Riyadh Summit 2020

Highlighting the impact of the COVID-19 pandemic, the G20 coordinated efforts
to mitigate its economic and social aftermath, emphasizing global cooperation and
support.
Criticism and Controversies
Critics argue that the G20 lacks institutionalization and has limited
representation of smaller economies.

Controversial decisions and actions, such as the handling of the global

financial crisis, have raised questions about the effectiveness and
accountability of the G20.
Conclusion
The G20 has emerged as a crucial platform for global economic governance, promoting cooperation, and
addressing major economic challenges. Its impact is undeniable, although criticisms and controversies persist.
With continued collaboration and adaptability, the G20 can shape a more inclusive and resilient global
economy.