G7 stands for “Group of Seven” industrialized nations.
It used to be known as the G8 (Group of Eight) until 2014 when Russia was excluded because of its annexation of Crimea from Ukraine.
The Group of Seven is the world’s leading industrial countries: United States, Germany, Japan, France, United Kingdom, Canada, Italy.
Why was G7 created?
The G7 was created more than four decades ago as an annual gathering of political leaders to discuss and exchange ideas on a broad range of issues, including the global economy, security, and energy.
France, Italy, Japan, the United Kingdom, the United States, and West Germany formed the Group of Six in 1975. Canada joined the following year.
Russia eventually joined in 1998 and its inclusion was meant as a signal of cooperation between East and West after the Soviet Union’s collapse in 1991.
The G7 is an informal bloc and takes no mandatory decisions, so the leaders’ declarations at the end of the summit are not binding.
Which countries are members of the G7?
The group includes the United States, the United Kingdom, Germany, Canada, Japan, France, and Italy.
As a group, the G7 countries represent about 40% of global GDP and 10% of the world’s population.
The European Union has been involved in G7 work since 1977 and is represented at the summit by the President of the European Commission and the President of the European Council.
The E.U. has gradually been included in all political discussions on the agenda despite not having official member status.
Why was Russia kicked out of the G8?
Russia was kicked out of the then G8 in 2014 after it annexed Crimea from Ukraine, which was seen by leaders as a “violation of Ukraine’s sovereignty and territorial integrity”.
President Barack Obama and other world leaders announced in a joint statement, titled The Hague Declaration, in March 2014 that they would cancel that year’s planned meeting in Sochi, Russia.
What’s the difference between G7 and G20?
The G7 and G20 are both groups of countries that come together to discuss and address major global economic, political, and social issues. However, they differ in terms of membership, scope, and objectives.
While the G7 mainly has to do with politics, the G20 is a broader group that focuses on the global economy.
Here are the main differences between the two:
Membership
G7: The Group of Seven (G7) is an informal group of seven of the world’s most advanced economies, comprising the United States, Canada, Germany, France, the United Kingdom, Italy, and Japan. The European Union (EU) is also represented within the G7 but is not an official member.
G20: The Group of Twenty (G20) is a broader and more inclusive group, consisting of 19 countries and the European Union. It includes the G7 members along with other major economies, such as Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.
Scope and Objectives
G7: The G7 primarily focuses on addressing global economic issues and coordinating economic policies among its members. It was originally formed in the 1970s in response to global economic crises, such as the collapse of the Bretton Woods system and the oil crisis. Over the years, the G7’s agenda has expanded to include other issues, such as climate change, global health, and security.
G20: The G20 was established in 1999, with the aim of bringing together the world’s major economies to discuss and address pressing global issues. While it also focuses on economic matters, its agenda is broader than that of the G7, as it covers a wide range of topics, including financial stability, international trade, employment, development, and energy. The G20’s goal is to facilitate international economic cooperation and ensure global financial stability.
Influence and Representation
G7: The G7 represents a smaller, more selective group of countries with advanced economies. Collectively, they represent a significant portion of global economic output, but their influence has diminished over time as emerging economies, such as China and India, have grown in importance.
G20: The G20 has a more diverse membership, representing both advanced and emerging economies. As a result, it covers around 85% of global GDP, over 75% of global trade, and about two-thirds of the world’s population. This broad representation gives the G20 more influence and legitimacy in addressing global issues compared to the G7.
In summary, the G7 and G20 are both international forums for discussing and addressing global challenges, but they differ in terms of membership, scope, and objectives.
The G7 is a smaller group of advanced economies, while the G20 is a larger, more inclusive group that represents a broader range of countries and issues.