Abstract
The realisation that emerging economies were becoming systematically important dawned on the major advanced economies with the Asian and Russian financial crises of the late 1990s, and hence, the necessity was felt for a larger forum than the G7 encompassing the emerging economies. The Group of Twenty Countries (G20) was launched as a forum of the finance ministers and Central Bank governors primarily to address the challenges to international financial stability that had begun in Asia in 1997. The need was felt for a “permanent forum” for informal dialogue between developing and developed countries in the G20. The need for the inclusion of major emerging economies in discussions on the international financial system was underlined by the global financial crisis of 2008. A platform was created where leaders of systemically important countries resolved to coordinate macroeconomic policies to counteract the global financial crisis. In turn, they analysed the deeper, underlying causes of the financial crisis. This chapter introduces and motivates the book and discusses the rationale behind the formation of the G20. It discusses the background of the G20, the role of G7 and G8, and discusses the organisation of the book in the chapters that follow.
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Notes
- 1.
- 2.
The Hokkaido Toyako summit (2008) declaration stated “financial market conditions have improved somewhat in the past few months. But serious strains still exist. While good progress has been made in implementing the recommendations by the Financial Stability Forum (FSF) in April, we urge private-sector players, national supervisory authorities and international bodies to rapidly implement all FSF recommendations to strengthen resilience of the financial system” (G8, 2008).
- 3.
The Hokkaido Toyako summit (2008) declaration highlighted “we invite international organizations, in particular the World Bank, the International Monetary Fund (IMF), the World Trade Organization (WTO), the International Labor Organization (ILO) and the Organisation for Economic Co-operation and Development (OECD), to enhance their cooperation and to improve coherence” (G8, 2008).
- 4.
According to the Hokkaido Toyako summit (2008), “we urge all countries that have not yet fully implemented the OECD standards of transparency and effective exchange of information in tax matters to do so without further delay, and encourage the OECD to strengthen its work on tax evasion and report back in 2010” (G8, 2008).
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- 7.
The G7 Ise-Shima Leaders’ Declaration stated that “We commit to ensuring that our fiscal and structural policies support sustainable social security services, which contribute to addressing our common demographic challenges” (G7, 2016).
- 8.
The G20 Osaka Summit Declaration noted that “Demographic changes, including population ageing, pose challenges and opportunities for all G20 members, and these changes will require policy actions that span fiscal, monetary, financial, labour market and other structural policies” (G20, 2019).
- 9.
The Saudi and the Italian Presidency are discussed in Chap. 7.
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Ray, S., Jain, S., Thakur, V., Miglani, S. (2023). Introduction. In: Global Cooperation and G20. Springer, Singapore. https://doi.org/10.1007/978-981-19-7134-1_1
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