What is the G20 and how does it work?
The G20 or Group of Twenty is a premier international forum for the governments and central bank governors from 20 major economies. It was established on September,1999. The economies include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, and the European Union. The EU is represented by the European Commission and by the European Central Bank.
The main objectives of the G20 include:
- To discuss policy issues and coordinate with its members for the promotion of international economic stability, and sustainable growth;
- To promote financial regulations that reduce risks and prevent future financial crises;
- To modernize international financial architecture;
- To address issues that go beyond the responsibilities of any one organization.
G20 members accounts for 90% of global GDP, and 80% of international global-trade. They represent 2/3 of the world’s population while 84% of all fossil fuel emissions are produced by G20 countries.
How does it work?
The presidency of the G20 is held annually among the members countries. Troika, a three-member management group consisting of previous, current and future chairs, is formed to lead the presidency. Troika focuses on transparency, fairness, and continuity from one presidency to another. The G20 has a temporary secretariat set up by the country that holds the presidency for the term of chairmanship. The president is crowned during the Leaders’ Summit.
The heads of government or heads of state of the G20 nations met semi-annually at G20 summits between 2009 and 2010. All G20 summits have been held annually since the November 2011 Cannes summit. Because the agenda is expanding in recent years, the group also hosts separate meetings of finance ministers and foreign ministers.