What is the G20

What is the G20

The Group of Twenty (G20) is the premier forum for international cooperation on the most important issues of the global economic and financial agenda.

The objectives of the G20 refer to:

1. Policy coordination between its members in order to achieve global economic stability, sustainable growth;

2. Promoting financial regulations that reduce risks and prevent future financial crises;

3. Modernizing international financial architecture.

The G20 brings together finance ministers and central bank governors from 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States of America plus the European Union, which is represented by the President of the European Council and by Head of the European Central Bank.

The G20 was formally established in September 1999 when finance ministers and central bank governors of seven major industrial countries (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) met in Washington, D.C. in the aftermath of the financial crisis of 1997-1998, which revealed the vulnerability of the international financial system in context of economic globalization and showed that key developing countries were insufficiently involved in discussions and decisions concerning global economic issues.

Finance ministers and central bank governors started to hold annual meetings after the inaugural meeting on December 15-16, 1999, in Berlin.

The first meeting of the G20 Leaders took place in Washington, D.C., on November 14-15, 2008, where the Leaders agreed to an action plan to stabilize the global economy and prevent future crises. As a result the premier forum acquired its current name and significance.

At their first meeting in Washington, the G20 Leaders achieved general agreement amongst the G20 on how to cooperate in key areas so as to strengthen economic growth, deal with the financial crisis and agreed upon three key objectives:

- restoring global economic growth;

- strengthening the international financial system;

- reforming international financial institutions.

(www.g20.org)