G-7 has also invited non-member countries who are playing an important part in world politics. The invited guest nations include India, Australia, Spain, South Africa, Senegal and Rwanda.
- G7 stands for “Group of Seven” industrialized nations. It used to be known as the G8 (Group of Eight) until 2014 when Russia was excluded because of its annexation of Crimea from Ukraine.
- The group includes the United States, the United Kingdom, Germany, Canada, Japan, France and Italy. Together, the G7 countries represent 40% of global GDP and 10% of the world’s population.
- The G7 is an informal bloc and takes no mandatory decisions, so the leaders’ declarations at the end of the summit are not binding.
- The G7 Summit is an informal gathering that lasts two days, in which leaders of member countries discuss a wide range of global issues.
- The G7 nations meet at annual Summits that are presided over by leaders of member countries on a rotational basis.
- The G7 does not have a formal constitution or a fixed headquarters.
- The decisions taken by leaders during annual Summits are non-binding.
What’s the difference between G7 and G20?
- They have similar names and similar functions. While the G7 mainly has to do with politics, the G20 is a broader group that focuses on the global economy. It’s also known as the “Summit on Financial Markets and the World Economy” and represents 80% of global GDP.
- It gathers leaders from Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States, as well as the European Union.
Challenges faced by G-7
- Making inequality: The Group of Seven (G7) leaders are creating a wide gap between the ‘haves’ and the ‘have-nots’.
- US factor: The G7 has turned into a collection of bilateral talks mostly tailored to suit the US President’s priorities
- No involvement of major countries like India, Russia and China.
- Competition from G20: Group of Twenty’s (G20) rise is becoming as an alternative forum. The power and prestige of the G20 has surpassed that of the G7.
- Incapability in resolving issues: Western policymakers are incapable of getting a grip on some of the world’s most pressing issues like falling global financial markets.
Conclusion: It is clear that the G20 offers a better global-governance forum than does the G7 in its current state. Although a greater number of participants makes it harder to reach a viable consensus, it is also much more representative.