G20 summit

Brief desc of G20

1. G20 - IntroductionG20 - Introduction
• Established in 1999, in the wake of the 1997 Asian Financial Established in 1999, in the wake of the 1997 Asian Financial
Crisis, to bring together major advanced and emerging Crisis, to bring together major advanced and emerging
economies to stabilize the global financial market. economies to stabilize the global financial market.
• Bring together systemically important industrialized and Bring together systemically important industrialized and
developing economies to discuss key issues in the global developing economies to discuss key issues in the global
economyeconomy
• Held annual Finance Ministers and Central Bank Governors' Held annual Finance Ministers and Central Bank Governors'
meetingsmeetings
• Discussed measures to promote the financial stability of the Discussed measures to promote the financial stability of the
world and to achieve a sustainable economic growth and world and to achieve a sustainable economic growth and
developmentdevelopment
• G20 Summits have been held in Washington in 2008, in London G20 Summits have been held in Washington in 2008, in London
and Pittsburgh in 2009, and in Toronto and Seoul in 2010and Pittsburgh in 2009, and in Toronto and Seoul in 2010
• France is very honoured to chair the Group of Twenty in 2011France is very honoured to chair the Group of Twenty in 2011

2. Origin
•proposed by former Canadian Finance Minister , Paul Martin
•Prior to the G-20 creation, similar groupings to promote dialogue
and analysis had been established at the initiative of the G-7
•G-22 met at Washington D.C. in April and October 1998. Its aim
was to involve non-G-7 countries in the resolution of global
aspects of the financial crisis then affecting emerging-market
countries.
• Two subsequent meetings comprising a larger group of
participants (G-33) held in March and April 1999 discussed
reforms of the global economy and the international financial
system.
•The proposals made by the G-22 and the G-33 to reduce the world
economy's susceptibility to crises showed the potential benefits of
a regular international consultative forum embracing the
emerging-market countries resulted in the creation of the G-20 in
1999.

3. Objective
•Support growth and development across
globe
•Strengthening of the international financial
architecture and providing opportunities for
dialogue on national policies
•International co-operation, and international
financial institutions
•Strengthen international cooperation.
•Creation of the framework for a strong,
sustainable and balanced growth designed to
enhance macroeconomic cooperation among
the G20 members

4. Members
US
Canada
France
Germany
Italy
UK
Japan
Russia
Australia
Brazil
Mexico
Argentina
China
India
South Korea
Indonesia
Saudi Arabia
Turkey
South Africa
EU/ECB
IMF/World Bank
Permanent guest: Spain
Special guests
WEED - PeWa

5. Attendees - Forums and Institutions
Represented by :
•The Managing Director of International
Monetary Fund
•The Chairman of the International Monetary
Fund
•The President of the World Bank
•International Monetary and Financial
Committee
•The Chairman of the Development Committee

6. Attendees/Information
•The European Union, who is represented by the rotating
Council presidency and the European Central Bank, is the
20th member of the G-20
•To ensure global economic fora and institutions work
together, the Managing Director IMF and the President of the
World Bank, plus the chairs of the International Monetary and
Financial Committee and Development Committee of the IMF
and World Bank, also participate in G-20 meetings on an ex-
officio basis
•Together, member countries represent around 90 per cent of
global GNP, 80 per cent of world trade (including EU intra-
trade) as well as two-thirds of the world's population
•In addition, experts from private-sector institutions and non-
government organisations are invited to G-20 meetings on an
ad hoc basis in order to exploit synergies in analysing selected
topics and avoid overlap.

7. Chair
•The G-20 has no permanent staff of its own
• The G-20 chair rotates between members, and is
selected from a different regional grouping of
countries each year.
•The chair is part of a revolving three-member
management Troika of past, present and future chairs.
•The incumbent chair establishes a temporary
secretariat for the duration of its term, which
coordinates the group's work and organizes its
meetings.
•The role of the Troika is to ensure continuity in the
G-20's work and management across host years.
•France G-20 chair in 2011
•In 2010, French President Nicolas Sarkozy proposed
permanent secretariat – suggested Seoul and Paris

8. Former G-20 Chairs
•1999-2001 Canada
•2002 India
•2003 Mexico
•2004 Germany
•2005 China
•2006 Australia
•2007 South Africa
•2008 Brazil
•2009 United Kingdom
•2010 Republic of Korea
•2011 France
•2012 Mexico

9. Schedules of G-20 meetings
Date Host country Host city
1
st
Nov 2008 USA Washington, D.C.
2
nd
April 2009 UK London
3
rd
Sept 2009 USA Pittsburgh
4
th
June 2010 Canada Toronto
5
th
Nov 2010 South Korea Seoul
6
th
Nov 2011 France Cannes
7
th
2012 Mexico TBD

10. Achievements
•Agreement about policies for growth
•Reducing abuse of the financial system
•Dealing with financial crises
•Transparency of fiscal policy and combating money
laundering and financing of terrorism
•Combat abuses of the financial system and illicit
activities including tax evasion
•Develop a common view among members on issues
related to further development of the global economic
and financial system
•Strengthen international cooperation
•global governance dramatically improved to better
take into consideration the role and the needs of
emerging of developing countries through the
ambitious reforms of the governance of the IMF and
the World Bank.

11. 2006 – Discussion points
•Building and Sustaining Prosperity
•Domestic reforms to achieve sustained growth
• Global energy
•Resource commodity markets
•‘reform’ of the World Bank and IMF
•Impact of demographic changes due to an
aging population

12. 1
st
G20, Washington – Nov2008
•Also Known as Bretton Woods II
•Common understanding of the root causes of the global
economic crisis and finding solution to the crisis
• Review of countries' past and future actions addressing the
immediate crisis and contributing to growth
• Agreement on common principles for reforming
Financial markets
• Action plan to implement those principles and to develop further
specific recommendations for later review
•Reaffirmation of commitment to free market principles
•Competition in Financial markets
•Clean energy
•Economic development
•Fiscal elements of growth and development

13. 2
nd
G-20 Summit – outcome (London, Apr2009)
•Triple IMF’s capacity to $ 750 billion to assist
crisis-affected countries
- by moving ahead with bilateral arrangements
through bonds issued by the Fund
- through an expansion of the New Arrangement
to Borrow.
•Concessional lending to poor countries by IMF
•Mandated the IMF to make a new general allocation
of Special Drawing Rights (SDRs) which will increase
global liquidity by injecting $250 billion into the
world economy which will provide a significant boost
to the international reserves of African countries

14. 2
nd
G-20 Summit – Outcome (London, Apr2009)-2
•The G-20 also affirmed the need for coordinated
action on fiscal policy through fiscal stimulus
programs and improve regulation in financial markets
in order to avoid a new crisis of the same kind.
•Discussed the banking crisis and the need to clean up
the balance sheet of the banks to achieve an
economic recovery in early 2010.
•IMF to conduct regular assessments of the world
economies and provide an enhanced early warning
system to avoid a new crisis and commitment by
world governments to listen to the warnings, as well
as a pledge to confidentiality within the Fund

15. 3
rd
G-20 Summit – Pittsburg (Sept 2009)
•Framework for Strong, Sustainable, and Balanced Growth
•Strengthening the International Financial Regulatory System
•Modernizing Global Institutions to Reflect today's Global
economy
•Reforming the Mandate, Mission, and Governance of the IMF
•Reforming the Mission, Mandate, and Governance of
Development Banks
•Energy Security and Climate Change
•Strengthening Support for the Most Vulnerable
•Putting Quality Jobs at the Heart of the Recovery
•An Open Global Economy

16. 4
th
G20 Summit – Toronto, Canada (Jun2010)
•Prime issue of the summit was the recovery
from the ongoing global recession and the more
recent European debt crisis
•International aid to Africa and other developing
nations
•Key agreement made by developed nations to cut
annual budget deficits in half by 2013 and reducing
debt-to-GDP ratio in each economy by 2016
•Financial institutions to keep a higher amount of
financial capital in case of future financial shocks
•Climate change and food security
•Reiterated their commitment to “greener growth”

17. 5
th
G-20 Summit – Seoul, Nov2009 - Agenda
Following up on previous G20 commitments like :
•Enhance international cooperation to generate strong,
sustainable and balanced growth
•Safeguarding the ongoing recovery and restoring fiscal
sustainability
•Building a stronger international financial regulatory
system
•Ensuring Ongoing Global Economic Recovery
•Strengthening the International Financial Regulatory
system
•Modernizing the International Financial Institutions

18. 6
th
G-20 Summit – Cannes (Nov2011)
•2011 will be the occasion to build on the
recent successes of the G20
•Ensure an active follow-up on processes
already underway.
•To address other essential issues which are
crucial to global stability such as the reform of
the international monetary system and the
volatility of commodity prices

19. •Heads of the G-20 members at the London
summit pledged to abstain from imposing any
trade protectionist measures

20. Criticisms
•Norwegian perspective - Even though one of the
major contributor of development programs in the
World Bank and United Nations, it is not a member of
the E.U. and thus not represented in the G-20 ,
characterized the G-20 as a "self-appointment group”,
arguing that it undermines the legitimacy of
organizations like the IMF, World Bank and United
Nations, composition is determined by the major
countries and powers

21. Criticisms.. Contd.
•Singapore - refusing to acknowledge the G20's
legitimacy, or accepting that the G20 will be the
premier forum for international economic
cooperation. Singapore has taken a leading role in
organizing an informal "Global Governance Group"
of 28 non-G20 countries
•The G20's transparency has also been questioned by
critics who call attention to the absence of a charter
and the fact that the most important meetings are
closed-door

22. Critics - Proposal
•Critics propose alternative such as an
Economic Security Council within the United
Nations , where members should be elected
by the General Assembly based on their
importance in the world economy and the
contribution they are willing to provide to
world economic development