Take a look at the essential concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your knowledge nugget for today. Knowledge Nugget: Group of Seven (G7) Subject: International Relations (Relevance: International groupings are important for both your prelims and Mains examination. In Prelims, questions have been asked on BRICS and G20. The Group of Seven countries comprises powerful economies that have significant influence worldwide. As the G7 leaders’ summit is scheduled later this month, it becomes important for you to develop a comprehensive understanding of this grouping. ) Why in the news? This year marks the 50th anniversary of the first Group of 7 (G7) meeting. Canada is hosting the 2025 G7 Leaders’ Summit, which will be held in Kananaskis, Alberta, from June 15 to 17, 2025. Canada has hosted 6 summits to date: 1981, 1988, 1995, 2002, 2010, and 2018. In a sign of improving ties between India and Canada, Prime Minister (PM) Narendra Modi on 6th June said he was invited by Canadian PM Mark Carney for the upcoming G7 meeting in Kananaskis later this month. Barring 2020 when the G7 huddle was cancelled by the US, the host country, Prime Minister Narendra Modi has attended every summit since 2019. Key Takeaways: 1. The Group of 7 (G7) is an informal group of seven countries that consists of the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom. Together these countries represent 40% of global GDP and 10% of the world’s population. 2. It has no legal existence, permanent secretariat or official members. There is no binding impact on policy, and all decisions and commitments made at G7 meetings need to be ratified independently by the governing bodies of member states. 3. History: 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 of at time – an oil crisis, rising inflation and collapse of the Bretton Woods system. US Treasury Secretary George Schultz decided that it would be beneficial for the large players on the world stage to coordinate with each other on macroeconomic initiatives. Bretton Woods System In the Bretton Woods Conference of 1944, the countries participated to negotiate a monetary order that would govern relations between the states. They created a system where global currencies were pegged to the dollar, which in turn was convertible to gold at a fixed rate. This arrangement provided a stable framework for international trade and investment, cementing the dollar’s pre-eminence in the global economy. 4. Thus, the idea of a forum was born, where major industrialised democracies could coordinate economic policies to address common challenges. The first G7 summit was held in 1975 in Rambouillet, France, bringing together the leaders of France, Germany, the United Kingdom, the United States, Italy and Japan. Canada joined the next year. 5. Since 1977, representatives of the European Economic Community, now the European Union, have also participated. Following the collapse of the Soviet Union in 1991 and a subsequent thaw in relations between the East and West, Russia was also invited to join the group in 1998. Thereafter, the group was named the G8 until 2014, when Russia was expelled for its annexation of Crimea from Ukraine. 6. The presidency of G7 meetings is held by each of the seven countries in turn, each year. The country holding the presidency is responsible for organising and hosting the meeting. This year, Canada is holding the presidency. 7. The G7 summit provides a forum for member countries to discuss shared values and concerns. While it initially focused on international economic policy, in the 1980s, the G7 extended its mandate to include issues related to foreign policy and security as well. 8. Over the years, the G7 has evolved from an economic forum to a platform that aims to address a range of global challenges. Concluding with a communiqué outlining political commitments, the annual summit influences global governance, agenda-setting and decision-making processes. 9. Usually, G7 host countries invite some countries as guest countries or outreach partners. Canada has so far invited Ukraine and Australia. It has not released names of other guest countries. BEYOND THE NUGGET: G15, G20, G24 and BRICS 1. G 15: According to the official website of the IMF, the Group of Fifteen (G15) was established at the Ninth Non-Aligned Summit Meeting in Belgrade, then Yugoslavia, in September 1989. It mainly comprises of countries from Latin America, Africa, and Asia with a common goal of enhanced growth and prosperity. It focuses on cooperation among developing countries in the areas of investment, trade, and technology. The membership of the G15 has since expanded to 17 countries, but the name has remained unchanged. 2. G20: The G20, or the Group of Twenty, is an informal grouping of 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, and the United States) and the European Union and African Union. These members represent around 85 per cent of the global GDP, over 75 per cent of global trade, and about two-thirds of the world population. As a forum for international economic cooperation, it plays an important role in shaping and strengthening global architecture and governance on all major international economic issues. 3. G24: The Group of Twenty-Four (G24), originally a chapter of the G77, was established in 1971. They call themselves Like Minded Developing Countries (LMDCs). They coordinate the positions of emerging markets and developing countries on international monetary and development finance issues and to ensure that their interests were adequately represented at international platforms. India is part of the LMDC grouping along with China, Indonesia, Malaysia, Iran, Bangladesh, Sri Lanka, the Philippines and others 4. BRICS: BRICS stands for Brazil, Russia, India, China, and South Africa, the original five members who were large, non-Western economies. In January this year, Indonesia officially joined the BRICS as a full member taking total membership to 10. Egypt, Ethiopia, Iran, and the United Arab Emirates are also part of the bloc. The organisation now represents almost half the world’s population and almost one-quarter of the world’s economy. Post read question (1) In which one of the following groups are all the four countries members of G20? (UPSC CSE 2020) (a) Argentina, Mexico, South Africa and Turkey (b) Australia, Canada, Malaysia and New Zealand (c) Brazil, Iran, Saudi Arabia and Vietnam (d) Indonesia, Japan, Singapore and South Korea (2) With reference to the G7, consider the following statements: 1. It is a formal grouping of advanced democracies that meets annually to coordinate global economic policy and address other transnational issues. 2. The presidency of G7 meetings is held by each of the seven countries in turn, along with the European Union. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer key 1. (a) 2. (d) (Sources: Chill in ties, window closing for Canada invitation to G7 summit, Explained: Who are the G7, whose Summit in Germany India has been invited to? ) Subscribe to our UPSC newsletter. 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