Group of  7 (G-7)

Group of  7 (G-7)

Why in NEWS?

India was invited as a Guest nation to the 47th G-7 Summit held in June 2021 at Cornwall, UK.

Since 2014, this is the second time the Prime Minister will be participating in a G7 meeting.

During Prime Minister Manmohan Singh’s tenure, India attended the G8 Summit five times.

The Objective of the 47th G7 Summit was to unite leading democracies to help the world build back better from the coronavirus and create a greener, more prosperous future.

The Group of Seven (G-7) is an informal bloc of industrialized democracies – France, Germany, Italy, the United Kingdom, Japan, the United States, and Canada – that meets annually to discuss issues of common interest like global economic governance, international security, and energy policy.

History

• France, West Germany, Italy, Japan, the United Kingdom, and the United States formed the Group of Six in 1975 to provide a venue for the industrialized democracies to address pressing economic concerns, in the wake of 1973 Oil Crisis.

• Later, Canada was also invited to join and the first meeting with all G-7 nations was held in 1976.
• The G-7 was known as the G-8 for several years after the original seven were joined by Russia in 1997.
• The group returned to being called G-7 after Russia was expelled as a member in 2014 following the annexation of the Crimea region of Ukraine.

There are no formal criteria for membership, but participants are all highly developed democracies. The aggregate GDP of G-7 member states make up nearly 50% of the global economy and 10% of the world’s population.
The requirements to be a member of the G7 are a high net national wealth and a high HDI (Human Development Index).

Significance of G-7

G-7 is considered to be the 2nd most important grouping after UNSC which can effectively deal with global issues

The major purpose of the G-7 is to discuss and sometimes act to help resolve global problems, with a special focus on economic issues. It became more relevant in the 1980s when it started discussing issues related to foreign policy and security as well.

In response to mounting concern over money laundering, the Financial Action Task Force (FATF) was established by the G-7 group in Paris in 1989.

In recent years, G7 leaders have met to formulate common responses to challenges encompassing counterterrorism, development, education, health, human rights, and climate change.

Launched a coordinated response in 2002 to fight the threat of AIDS, Tuberculosis, and Malaria

This led to the formation of the Global Fund, an innovative financing mechanism that has disbursed more than $45 billion in aid.

Tackling Climate Change – In 2015, members launched the Global Apollo Program, designed to tackle climate change through clean energy research and development.

The programme calls for developed nations to commit to spending 0.02% of their GDP on tackling climate change from 2015 to 2025. This would mean spending $150 billion over a 10-year period.

India is an important partner for the G-7, as it is a strong promoter of democracy and have significant regional influence.

Significance of India – G-7 Relationship

• India’s presence at G7 is an acknowledgement of the changing world order and India’s growing importance as a major economic power.

• This year’s invitation is a continuation of India’s long-term desire of becoming part of global high table of diplomacy.
• India is a natural ally for the G7 countries in defending the shared values from a host of threats stemming from authoritarianism, terrorism and violent extremism, disinformation, and economic coercion.
• Countering China – B3W initiative launched to support infrastructure investment in low- and middle-income countries is a counter to China’s belt and road initiative which is accused by western countries of promoting predatory financing.
• Vaccine Diplomacy – Commitment to provide over 1 billion covid vaccine without any strings attached come as a breather to countries like India who are emerging from deadly second wave of covid and grappling with shortage of vaccines.
• New Atlantic charter deals with challenges like climate change, biodiversity, rise of authoritarianism in which India is a key stakeholder and thus can hold the promise of heralding a new chapter in India’s relationship with the West.

However, G-7 organization has been criticized for being a closed group and not reflecting the current state of global politics or economics.

Has G-7 lost Power? – Criticisms

• Outdated Group – The group is criticized as no longer reflecting the modern-day geopolitical realities.
  • Many incumbent members like Italy and Canada possess less economic and political power in comparison to non-members like India and China.
• Shift of Power – G-20 Summit superseded G-7 as the world’s most important meeting of all global leaders.
  • It signalled the end of the old-world order and the beginning of a new one.
• Disregards the interest of smaller nations – Several countries and individuals still perceive the G7 as an exclusive, closed group that blatantly exercises its power over other nations. The collective power of the group is so huge that it creates a disproportionate impact on other nations.
• Failed in tackling Global problems – G7 accounts for 59% of historical CO2 emissions and pledged to phase out fossil fuels. Yet there is no visible progress of the same, and they currently account for twice the CO2 emission than African continent.
  • G7 nations failed in addressing the West Asian migrant crisis, leading to deaths and inhumane statelessness for millions.
• Non-Binding nature:  Unlike other bodies such as NATO, the G7 has no legal existence or a permanent secretariat. Further, the meeting commitments are non-binding in nature.
• Shortcomings of Washington Consensus – The grouping has mainly focused on realising the Washington consensus. It is a collective term used for 10 economic policy prescriptions to promote a free-market economy.
  • The East Asian crisis in the late 1990s and the global recession of 2008–09 indicated that increased deregulation would only result in financial instability.
• Internal Tussles – There are a number of disagreements in the Group of 7 internally, e.g. clash of the USA with other members over taxes on imports and action on climate change.

Way Forward

• Need to reflect current geopolitical reality – The grouping should become more representative in nature and emerging economies must be made a part of the group.
  • It can be converted to G 11 with the inclusion of India, Australia, South Korea, and Russia.
• The grouping requires a G7 charter and a permanent secretariat for the organisation.
  • The new principles and policies of the group should reflect a global outlook rather than merely focusing on the myopic interests of the developed world.
  • This would result in prudent tackling of global problems like climate change and the Covid-19 pandemic.
• The G7 countries should expeditiously fulfil their commitment to supply one billion doses of Covid vaccines to poor and middle-income countries.
• India should actively participate in the talks, especially the ones related to global vaccine delivery as it is both – a major manufacturer and consumer of vaccines.

As China is seemingly the greatest obstacle to India’s global ambitions besides threat to the territorial sovereignty, a better relationship with the West is a requirement for India.

Looking east and mobilizing the south have been India’s default geopolitical orientations. While Delhi continues to strengthen its partnerships in Asia and the global south, a more productive partnership with the West helps secure a growing array of India’s national interests and adds a new depth to India’s international relations.

In this scenario, G7 summit and invitation to India is a welcome development. G-7 summit is an opportunity to expand the global dimension of India’s growing partnerships with the US and the West.