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Group of Seven (G7) Summit 2024

  • 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.

Evolution and relevance

  • 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.

Agenda of G7 summit 2024

  • 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.
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