The Group of Twenty and the Stability of the World Economy

The Group of Twenty (G20) is an informal forum that supports constructive and open discussions among prominent market and industrialized countries on fundamental issues related to the stability of the global economy. To contribute to the strengthening of the global financial architecture, to provide opportunities for dialogue on the country s internal economic policies and cooperation among them, and to employ international financial institutions in the service of the global economy, the G20 also seeks to strengthen the movement of economic growth and development around the world. The Group also aims to follow the recognized international standards It is based on the example that is put forward by members in areas such as: transparency of fiscal policy and addressing money laundering and terrorist financing. Has this group of countries really been able to employ international financial institutions in the service of the global economy? Does it support the movement of economic growth and development in various countries of the world? Have they achieved transparency in fiscal policy and the fight against money laundering and the financing of terrorism?´-or-is this group pursuing its interests only even if it is at the expense of developing and poor countries, so that the rich get richer and the poor get poorer?
The Group of Twenty (G20) was established on the sidelines of the G-8 Summit on 25 September 1999 in Washington, D.C., at the G20 Finance Ministers Meeting. The purpose of this new group is to promote international financial stability and to create opportunities for dialogue between industrialized and emerging countries, which the meetings of finance ministers with the Group of Seven have not been able to resolve. As an economic group, the G20 consists of the 20 largest industrially developed countries, plus the European -union-. These represent Countries are the most important countries in the world in terms of economic and strategic importance. The group of economies of these countries accounts for 90% of global GDP.
The quest to promote international financial stability is not only through dialogue between industrialized and emerging countries and neglect of the rest of the world, especially developing countries, but also the participation of various countries of the world in this dialogue for the benefit of all.
I - The historical roots of the establishment of the Group of Twenty:
When the Group of European States was subjected to the first oil shock in 1973-1974, former French President Giscard d Estaing called on the major industrialized countries (Group of Eight G) to hold an economic summit in Ramboin to discuss the problems of the recession that overlooked their economies for the first time since the global recession in the thirties. The list of participants in this gathering then increased to include Canada, China and Russia in the nineties after Russia, led by Boris Yaltsin, pursued a policy of market economy. The Group of Eight then adopted the formula of eight + five (8 + 5), meaning that it includes the Big Five in the world of Parties´-or-from developing countries. This formula included the United States, Germany, France, Britain, Italy, Japan, Canada, Russia, as well as China, India, Brazil, South Africa and Mexico.
The call for the participation of developing countries in the dialogue was through the eight + five format, but what happened was the participation of emerging countries such as China, India, Brazil, South Africa and Mexico, all of which are emerging countries. This confirms that the economic bloc is never concerned with the interests of developing countries except the strong ones. Especially when we notice a decline in the volume of development assistance provided by developed countries.
For the first time, heads of state and government, not just finance ministers, met. The first emergency G20 summit was held in Washington in November 2008 hosted by former US President George W. Bush and the 8+5 formula was expanded to 8+11. Let these countries form the Group of Twenty.
The Managing -dir-ector of the International Monetary Fund and the President of the World Bank, along with the Chairmen of the International Financial Committees, the International Monetary Committees and the Development Committees of the International Monetary Fund and the World Bank, also participated informally in the meetings of the Group of Twenty The Group of Twenty thus brought together prominent market countries, major industrialized countries and some emerging countries from all regions of the world.
The Group of Twenty aims to strengthen international cooperation and to consolidate the principle of expanded dialogue taking into account the increasing economic weight that a number of States have enjoyed. The Group of Twenty accounts for two-thirds of the world s trade and population and more than 90% of the world s GDP. How can international cooperation be strengthened and the principle of expanded dialogue established by taking into account only economic weight? It has become enjoyed by a-limit-ed number of (20) countries and neglected by more than 150 countries, which do not participate in dialogue.
The population of the G20 countries constitutes 65.2% of the world s population. Its systems are divided into the following: (1) a federal system, 14 republics (of which 7 are federal republics and 1 are people s republics) and 5 kingdoms (of which 1 is an absolute monarchy). The G20 countries are divided by groupings as follows: 3 countries from NAFTA, 2 from the Common Market, 4 countries from the European -union- (which at the same time represent their own countries), and 3 Member States of the Organization of the Islamic Conference. The political, economic and social systems of the member states of the group are uneven, which may-limit- the results, ambitions and goals they seek to achieve.
The Asian continent is represented by the Group of Twenty countries such as China, South Korea, India, Indonesia, Japan and Russia in addition to Turkey and Saudi Arabia, the European continent represented by Germany, France, Britain and Italy, the African continent represented by South Africa, South America represented by Argentina, Brazil and Mexico, the North American continent represented by the United States and Canada, in addition to Australia. We will review the most important summits held by the countries of the Group, the factors of their success´-or-failure and the results adopted by each summit, from the Washington summit in 2008 until the St. Petersburg summit in 2013.
Prof. Dr. Moustafa El-Abdallah Al Kafry
Faculty of Economics - Damascus University

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