Group of Seven (G7) Summit 2024

Never Miss an Important Update! Assured Discounts on New Products!

Context (IE): India is participating as an Outreach Country in the G7 Leaders’ Summit in Italy.

Origin of G7

The G7 originated from a 1973 meeting of finance ministers and central bank governors in Paris, France.
This meeting was convened in response to major economic challenges at the time — an oil crisis, rising inflation, and the collapse of the Bretton Woods system.

In the Bretton Woods system, the value of the US dollar was fixed against gold. It required countries to guarantee the convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates.

Subsequently, the idea evolved as a forum where major industrialised democracies could coordinate economic policies to address common challenges.

For details on membership, refer > G7.

G7 has evolved from an economic forum to a platform that aims to address a range of global challenges.
While it lacks a permanent administrative structure, the G7 rotates its presidency annually, and the presidency serves as a temporary secretariat.
Its relevance has been questioned as the combined share of its members in global GDP has fallen.
- According to the think tank Bruegel, the G7’s share of global GDP has declined from roughly 50% in the 1970s to around 30% in 2018.
Experts argue a reconfigured G7+, which would include a common euro-zone representative and make space for China, India, and Brazil.
It is questioned due to the inability to achieve consensus on issues like climate change.
However, G7 has been instrumental in coordinating economic policies, promoting free & fair trade practices, shaping global governance issues, and supporting security cooperation & development assistance.

It includes defending the “rules-based international system”. Key priorities include migration, climate change, food security, and the implications of artificial intelligence (AI) for humanity.
It aims to coordinate economic policies to stabilise the global economy amidst concerns over inflation and trade tensions.
Summit will focus on addressing climate change by discussing strategies to reduce carbon emissions and promote sustainable energy sources.
In the context of COVID-19, G7 will prioritise global health initiatives, including pandemic preparedness and vaccine distribution.
Additionally, the summit will address geopolitical tensions, including relations with China and Russia, and ongoing conflicts with global implications.