What is the G-20

 Group of Twenty (G-20) Is a group of Finance Ministers and Central

Bank Governors
 The G 20 was established in 1999 to :

o bring together important industrialized and developing economies

and
o to discuss key issues in the global economy.
 The inaugural meeting of the G-20 took place in Berlin, on December

15-16, 1999, hosted by German and Canadian finance ministers.

 Origins

 The G-20 was created as a response to :

 the financial crises of the late 1990s and

 Giving recognition to key emerging-market countries

 Prior to the G-20 creation, G7 & G22 were established

 G20 MEMBERS

 Finance Ministers & Central Bank Governors of 20 key countries

 Argentina, Australia, Brazil, Canada, China, France, Germany, India,

Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa,

South Korea, Turkey, United Kingdom, USA, European Union
 Managing Director of the International Monetary Fund (IMF)1

 President of the World Bank (WB)2

 MEMBER COUNTRIES

 Together, member countries represent around

 90 per cent of global gross national product,

 80 per cent of world trade (including EU intra-trade)

 two-thirds of the world's population.

 Achievements

 The G-20 has progressed a range of issues since 1999 including :

 agreement about policies for growth

 educing abuse of the financial system
 dealing with financial crises
 combating terrorist financing
 Internal Structures

 The G-20 = informal institution

 No statutes

 No binding decisions (peer review)

 No headquarters

 No own administration and staff

 Rotating presidency

 Implementation trough national states or multilateral institutions

 ACHIEVEMENTS

 In 2004, G-20 countries committed to new higher standards of

transparency and exchange of information on tax matters.

 he G-20 has also aimed to develop a common view among members on

issues related to further development of the global economic and

financial system. 
 OBJECTIVES

The G-20 is guided by two general objectives:

 1. Address global financial problems

 2. Increase influence of developing countries (emerging markets) in

global economic dialogues

 Chair

 Unlike international institutions such as :

 the Organization for Economic Co-operation and Development (OECD),

 IMF or World Bank,
 the G-20 (like the G-7) has no permanent staff of its own.

 he G-20 chair rotates between members

 Chair

 The member is selected from a different regional grouping of countries

each year. 
 In 2010 the G-20 chair is the Republic of Korea, and in 2011 it will be

France
 Troika

 The chair is part of a revolving three-member management Troika of

past, present and future chairs.

 The incumbent chair establishes a temporary secretariat for the duration

of its term, which coordinates the group's work and organizes its
meetings.
 The role of the Troika is to ensure continuity in the G-20's work and

management across host years.

 FORMER G20 CHAIRS

 1999-2001 Canada

 2002 India

 2003 Mexico

 2004 Germany

 2005 China

 2006 Australia

 2007 South Africa

 2008 Brazil

 2009 United Kingdom

 Meetings and activities

 It is normal practice for the G-20 finance ministers and central bank

governors to meet once a year

 The last meeting of ministers and governors was held in St. Andrews,

UK on 6-7 November 2009

 The ministers' and governors' meeting is usually preceded by two

deputies' meetings and extensive technical work.

 Meetings and activities

 This technical work takes the form of :

 workshops,
 reports and
 case studies on specific subjects

 These aim to provide ministers and governors with contemporary

analysis and insights to understand policy challenges and options

 2010 G20 Events

 Deputies Meeting, February 27-28, Korea. (Incheon Songdo)

 Meeting of Finance Ministers and Central Bank Governors, April 23,

USA. (Washington, D.C)

 Meeting of Finance Ministers and Central Bank Governors, June 4-5,

Korea. (Busan)
 G20 Summit Meeting, June 26-27, Canada. (Toronto)
 2010 G20 Events

 Deputies Meeting, September 4-5, Korea. (Gwangju)

 Deputies Meeting, October 7, USA. (Washington, D.C)

 Meeting of Finance Ministers and Central Bank Governors, October 22-

23, Korea. (Gyeongju)

 G20 Summit Meeting, November 11-12, Korea (Seoul)
 Interaction with other international organizations

 The G-20 cooperates closely with various other major international

organizations
 The participation of :

 the President of the World Bank

 the Managing Director of the IMF and
 the chairs of the International Monetary and
 Interaction with other international organizations

 Financial Committee and

 the Development Committee in the G-20 meetings
 ensures that the G-20 process is well integrated with the activities of the

Bretton Woods Institutions

 Interaction with other international organizations

 The G-20 also works with, and encourages, other international groups

and organizations, such as

 the Financial Stability Board and
 the Basel Committee on Banking Supervision,
 Interaction with other international organizations

 In addition, experts from private-sector institutions and non-government

organizations are invited to G-20 meetings

 This is done on an ad hoc basis in order to exploit synergies in

analyzing selected topics and avoid overlap.

 External communication

The chairing country posts details of the group's meetings and work program

on a dedicated website.
the public is informed about what was discussed and agreed immediately after

the meeting of ministers and governors has ended.

the G-20 also publishes a communiqué which records the agreements reached

and measures outlined.

Material on the forward work program is also made public.
 G20 2010 AGENDA

CO-ORDINATE POLICIES FOR ECONOMIC GROWTH

This one is a lot more complicated than it looked as the G20 bosses packed up to
leave Pittsburgh. Then, the main issue was how to manage the delicate
withdrawal of government stimulus policies that were supporting economic
growth out of the recession, while sticking to a pledge to support growth.
That was going to be tough enough, given that many economists predicted the
world economy would tank when stimulus was reined in because governments
were doing all the buying and consumers were still cutting back.
Now, bond markets are making it even more difficult. A crisis in Greece spooked
investors, who have demanded austerity measures there and elsewhere, and
suddenly governments around the world are looking at cutting back spending
much more quickly than planned. Balancing that against the promise to support
growth is going to be difficult. “No doubt the G20 will be sounding austere and
very focused to make sure they address concern about fiscal situations,” said
Simon Ballard, senior credit strategist at Royal Bank of Canada securities arm.
BANKING REGULATIONS
The well-known split here is over the idea of taxing banks to finance future bailouts, an
idea that Europe and the U.S. are pushing hard and Canada is fighting. This issue may
be a flashpoint because France and Germany refuse to let the idea drop.
Aside from the bank-tax battle, there is progress. Global banking regulators have moved
on raising capital and liquidity standards for banks, and made efforts to make derivative
trading easier to follow and understand for investors and regulators. Rule makers are
also pushing ahead with a plan to create “living wills” that would lay out how to wind
down some of the biggest financial institutions in an orderly fashion if they run into
insurmountable trouble.
Still, there are many hurdles. There are few details on most of the proposals. Banks are
fighting back on many rules, arguing they are too punitive. Global co-ordination is hit-
and-miss, with the U.S. pushing ahead while other countries, especially in Europe, move
more slowly.
“It’s amazing since Pittsburgh how far apart the two parts of the world have moved,”
said Arturo Bris, a professor at IMD Business School in Switzerland. “Europe has really
disappointed.”
REFORM GLOBAL INSTITUTIONS
G20 leaders are seeking to make the World Bank and
International Monetary Fund more responsive to the needs of
smaller countries. The goal in Toronto is to “take stock of the
steps taken at these institutions to enhance their governance and
strengthen their lending capacities in order to remain credible
and effective,” according to the Canadian government.
This is symbolic for the emerging-market nations of the G20,
which want to see their increasing influence recognized with
concrete reforms, and progress has been slow. At a meeting in
South Korea earlier this month, G20 finance ministers said work
on this must “accelerate.” But this issue may struggle for attention
at the Toronto meeting.
LIBERALIZE GLOBAL TRADE
The G20 has pledged to fight protectionist measures
arising from the global financial crisis. So far, the
tide of such protectionism has been less than feared,
though there have been examples such as the “Buy
America” provisions in the U.S. stimulus program.
The goal is to push G29 countries to continue to
reduce barriers to trade.
PHASE OUT FOSSIL FUEL SUBSIDIES
This is a wild card. It’s on the to-do list from
Pittsburgh, but until recently had appeared low
priority. With the oil spill in the Gulf of Mexico, U.S.
President Barack Obama now seems more focused
on energy policy than anything else; he used his first
televised Oval Office speech to push for a move
toward clean energy and away from fossil fuels.