The G8 or Group of 8 is made up of 8 of the richest countries of the world. It’s often known as the “gang of 8,” and is designed to deal with a variety of political, and economic problems facing the world. The Group of 20 or G20 is made up of finance ministers, and bank governors. The idea behind it is to bring together financial minds from industrialized, and developing countries in order to promote economic stability, and development around the world.
Final Communiqué Officially Designates G20 as Economic Body
The draft communiqué set out an ambitious goal of setting objectives concerning the trade imbalance, and budget deficits to be pursued by each country. The policy will include a peer-review process, where the other members will review the goals. No punishments will be assessed for those who don’t meet their goals.
The leaders final communiqué officially designated the G20 as the leading economic forum. In an article published by Aljazeera.net the official communiqué reads: “We designated the G-20 to be the premier forum for our international economic co-operation.”
The Group of 20 also came to an agreement on banking reforms, which included a measure tying bonuses to long-term sustainable growth, instead of profits. They also approved a food for security program led by the World Bank.
The G20’s designation earned the endorsement of former Canadian Prime Minister Paul Martin, an early proponent of the G20. In comments published on CBC.CA offered his opinion: “I think it’s a confirmation of a new international reality.”
Group of 20 to Include China, India, Brazil
The idea in expanding the G8 is to include China, as well as emerging economies such as Brazil, and India. In remarks published by the Canadian Press, Prime Minister Stephen Harper said that now China and India were among the larger economies in the world, “you're past the stage where you can deal with economic issues with only the established, developed countries.” The G8 will exist after the summit next June. The new focus will shift to security, and non-economic issues with the exact mandate at this point remaining unclear.
Questions that the new expanded G20 will weaken Canada’s influence have been acknowledged, and put to rest by the Prime Minister. In remarks in the same Canadian Press article, he admitted the expansion means a different dynamic: “Obviously, we are one of 20, instead of one of 8, it’s a different dynamic.” He added Canada would maintain its influence because of its envious position as a multicultural, peaceful society that hasn’t been destroyed by the economic crisis.
The G20 has existed since the Asian crisis of the mid-90's. Experts argue having a leadership-level summit gives developing countries a global voice on economic matters affecting their countries.
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