What You Should Know about G7

Adil Javed

Questions Addressed

• What is G7?
• Membership
• History of G7
• The Purpose of G7
• Key Issues Discussed at G7
• Recent Summits and Meetings of G7
• The Challenges of G7
• Group of Seven (G7) vs BRICS

What is G7?

The Group of Seven, commonly known as G7 is an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States; additionally, the European Union (EU) is a "non-enumerated member".

As the G7 is originated by Western States, it is organized around shared values of pluralism, liberal democracy, and representative government.

G7 members has remained during 2020 the large IMF advanced economies and accounted for over half of global net wealth which is at over $200 trillion. This also accounts for 30 to 43 percent of global gross domestic product, and 10 percent of the world's population (770 million people).

However, the G 7 countries are expected to grow by 2.6% in 2023, down from 3.6% in 2022.

There are several factors behind this decline. These include the war in Ukraine, rising inflation, and the slowdown in the overall global economy.

History of the G7

The G7 was founded in 1975. At the time of its inception it was known as the Group of Six (G6). It was created by France, Germany, Italy, Japan, the United Kingdom, and the United States.

The first G6 meeting was held in Rambouillet, France. In 1976, Canada joined the leaders of France, Germany, Italy, Japan, the United Kingdom and the United States to discuss coordinated responses to global crises.

In, 1977 the European Union was invited to attend. The G7 is not based on a treaty and has no permanent secretariat.

The G7 countries was desirous to coordinate their economic policies and to ensure the stability of the global financial system.

Furthermore, in 1998, Russia was also invited to join the G7, and it became the G8.

After a partnership of more than decade, Russia was suspended from the G8 in 2014 after it has annexed Crimea from Ukraine.

Membership of the G7

The current G7 members are:

• Canada
• France
• Germany
• Italy
• Japan
• United Kingdom
• United States
• European Union

Although, the European Union is not a country, but it is represented at the G7 meetings and summits by the President of the European Commission and the President of the European Council.

What is the Purpose of G 7?

The purpose of the G 7 is to:

• Ensure Coordination in Economic Policies
• Collectively Address Global Security Issues
• Promote Sustainable Development
• Address The Challenges of Climate Change
• Other Issues Relating to Common Interests of the Bloc

Although, G 7 is not a formal organization or alliance, but it has become an important forum for international cooperation.

The summits of G7 are held annually, and they are attended by the heads of government or state of the member countries.

These summits has started getting a limelight in media because of conflicting interests with the China and Russia especially after Ukraine War and Sino-US trade war.

In the ongoing year, on the parallel of G7 summit 2023 that was held in Hiroshima, Japan, China has called conference of Central Asian Countries to boost its Belt and Road Initiative (BRI).

Key Issues Discussed at G7

Here are some of the key issues that are discussed at the core of G7 Meetings and Summits:

1. Global Economic Governance:

Since China has declared its ambition to become key Global Economic Player by the end of 2050, the major focus of G7 has shifted to boost Global Economic Governance.

The G7 countries discuss ways to coordinate their economic policies and to ensure the stability of the global financial system. This includes issues such as trade, taxation, and financial regulation.

2. International Security and Question of Peace:

On the side of economic policies, security issues are also taken importantly. The G7 countries discuss ways to address global security issues such as terrorism, nuclear proliferation, and conflict resolution. 

They also discuss ways out to promote global peace and security. 

3. Energy Policy:

The G7 countries discuss ways to ensure the security of energy supplies and to address climate change. This includes issues such as clean energy, energy efficiency, and carbon pricing.

G7 countries are acting and enhancing cooperation to address the climate change threats and accelerate the global clean energy transition to reach net zero emissions by 2050. 

According to the Website of White House, G7 is focused on the Clean Energy Economy Action Plan. 

4. Climate change: 

The G7 countries are committed to addressing climate change. They discuss ways to reduce greenhouse gas emissions and to adapt to the impacts of climate change.

According to the output of several G7 Summits, the bloc is committed to the urgency to address climate change and transition to a low carbon economy. additionally, with the responsibility to cut emissions and unleash a resilient and net zero world.

The G7’s leaders collectively play an important role in achieving the Paris Agreement’s goal of limiting global temperatures to 1.5C.

5. Development: 

The G7 countries are committed to promoting development in the world's poorest countries. They have discussed multiple times about the ways to increase aid, trade, and investment in developing countries.

6. Health: 

The G7 countries are committed to improving global health systems and mechanism. As the world have realized this need especially after Covid-19 Pandemic. 

G7 members discuss ways to prevent and treat diseases, to improve access to healthcare, and to strengthen health systems in order to prevent further loss of human health and lives.

7. Other Outstanding Issues: 

The G7 countries also discuss other issues of common interest, such as food security, migration, and cyber security. These issues has become more prominent after recent droughts in Africa and affected grain deal after Ukraine War, a large influx of migration to European countries from developing or war torn countries in Middle East, under-developed states of Africa and some parts of Asia.

Since the information on internet became more powerful and sensitive, the concept of Cyber-security has increased. States have witnessed losses of millions of dollars due to Cyber Attack.  

Furthermore, the specific issues that are discussed at the G7 summits are kept in agenda depending on the current global scenario and multiple challenges. Therefore, the agenda items vary from year to year, according the circumstances.

The Recent G7 Summits and Meetings

Here is the detail of some of the key outcomes of each meetings:

1. G7 Summit 2022 in Elmau, Germany: 

In this Summit, G7 leadership agreed to provide $20 billion in financial assistance to Ukraine and to impose new sanctions on Russia. 

They also discussed ways to address the global challenges relating to food security, which is being exacerbated by the war in Ukraine.

2. The G7 Foreign Ministers' Meeting 2023 in Bali, Indonesia: 

The pressing topic for G7 in the ongoing year was Ukraine crisis and several security, economic, political issues emanating from this. The G7 foreign ministers discussed ways to coordinate their response to the war in Ukraine and to address the global food crisis. 

They also discussed the situation in Afghanistan and the rise of China.

3. G7 Finance Ministers' Meeting 2023 in Washington, DC: 

In the United States, the G7 finance ministers discussed ways to address the global economic slowdown and to mitigate the impact of the war in Ukraine on the global economy.

In addition, they also have discussed ways to promote sustainable development and to address issues relating to climate change.

4. G7 Summit 2023 in Hiroshima, Japan: 

This is the latest and important event of G7 that has held so far in 2023. 

According to the article published in CSIC, the G7 leaders discussed "economic security and economic resilience" at the Hiroshima summit. This is the first time that the international community has defined this term, which has been gaining popularity in many G7 countries but has lacked a clear and common definition.

The G7 statement defines economic security as having seven dimensions: 

• Resilient supply chains
• Resilient critical infrastructure
• Response to non-market policies and practices
• Addressing economic coercion
• Countering harmful practices in the digital sphere
• Cooperating on international standard-setting
• Preventing leakage of critical and emerging technologies

These dimensions reflect the major risks in today's global economy, such as pandemic disruptions, cyberattacks, and China's more assertive use of its economic power. This is the first time that leaders in G7 has openly hinted China at an official platform in context of countering its emergence as an assertive economic power.

The statement does not explicitly mention any particular country, but paragraph 51 of the main communiqué, which covers a range of China-related concerns, leaves little doubt which country was top of mind for G7 leaders.

In other words, the G7 leaders are concerned about the economic security of their countries and are taking steps to address the risks posed by China. 

They are working to build resilient supply chains, critical infrastructure, and international standards. They are also working to counter harmful practices in the digital sphere and to prevent the leakage of critical and emerging technologies. 

The G7's focus on economic security is a sign of the times. The global economy is becoming increasingly interconnected, and countries are more vulnerable to shocks and disruptions. 

What are the Challenges Facing G7?

Here are some of the challenges facing the G7: 

1. Internal Divisions: 

The G7 countries do not always agree on the best way to address global challenges. This can lead to disagreements and delays in decision-making. For example, the G7 countries have been unable to agree on how to respond to the war in Ukraine.

2. Rise of Alternative Institutions: 

The G7 is not the only forum for international cooperation. Other institutions, such as the G20 and the BRICS, are also playing an increasingly important role in international relations. 

This can make it difficult for the G7 to maintain its influence in such competitive and diverse scenario.

3. Criticism of the G7's Relevance: 

Some countries argue that the G7 is no longer relevant in the 21st century. According to them, the G7 countries are not representative of the global economy and voice of under-developed states, and that they do not address the needs of the world's poorest countries.

The future of the G7 is uncertain. The G7 countries will need to address the challenges they face if they want to remain a relevant force in the world.  

4. Some Possible Ways for the G7 to Address these Challenges:

The G7 countries could create a more formal structure and decision-making process. This would help to ensure that they are able to make decisions more quickly and effectively.

The G7 countries could work more closely with other institutions, such as the United Nations and the World Bank. This would help to ensure that the G7 is not working in isolation.

The future of the G7 will depend on its ability to address the challenges it faces. If the G7 can do this, it will remain a valuable forum for international cooperation and a force for good in the world.

G7 vs BRICS

The BRICS and G7 are both important forums for international cooperation. 

However, they have different strengths and weaknesses. The BRICS countries are growing rapidly and have a large population. They are also becoming more influential in the global economy. 

However, the BRICS countries have different political systems and interests, which can make it difficult for them to agree on common goals. 

The G7 countries are more established and have a longer history of cooperation. They also have a larger economy than the BRICS countries. However, the G7 countries are facing some challenges, such as internal divisions and the rise of alternative institutions.

It is too early to say which forum will be more influential in the future. However, both the BRICS and G7 are likely to play an important role in the global economy and politics. 

Here are Some of the Recent Developments in the BRICS and G7:

In 2023, the BRICS countries have been discussing the expansion of the bloc to include other countries, such as Argentina, Indonesia, and Egypt. In the recent BRICS Summit 2023, twenty countries formally applied for BRICS membership while more 40 countries have shown desire to be part of the bloc. 

According to the article published in Financial Times, China urges BRICS to become geopolitical rival of G7. 

Furthermore, in the run-up to the BRICS summit 2023 New Delhi has clashed with Beijing over the expansion. 

The article also added that, "tensions are mounting over whether the BRICS should be a non-aligned club for the economic interests of developing countries, or a political force that openly challenges the west, said people briefed on India and China’s positions."

The G7 countries have been working on a plan to reduce their dependence on Russian energy supplies. They have also been providing military and financial aid to Ukraine. President of Ukraine toured Europe in June this year where he got both financial and military assistance. United Kingdom provided missiles to Ukrainian military in its war against Russia. The later is also a member of BRICS.

The future of the BRICS and G7 will depend on how they respond to the challenges they face. If they can overcome their challenges, they will remain important forums for international cooperation.

The writer teaches at Higher Education Department and has done MS in Politics and International Relations

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