G7 facts for kids
|
|
_Countries.svg)
The G7-states (blue) and the EU (teal)
Member states and key leaders: |
|
| Formation |
|
|---|---|
| Founder |
Library Group:
|
| Founded at |
|
| Type | Intergovernmental organisation |
| Purpose | Political and economic forum |
|
Formerly called
|
|
The Group of Seven (G7) is an intergovernmental political and economic 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". It is organized around shared values of pluralism, liberal democracy, and representative government. G7 members are major IMF advanced economies.
Originating from an ad hoc gathering of finance ministers in 1973, the G7 has since become a formal, high-profile venue for discussing and coordinating solutions to major global issues, especially in the areas of trade, security, economics, and climate change. Each member's head of government or state, along with the EU's Commission President and European Council President, meet annually at the G7 Summit; other high-ranking officials of the G7 and the EU meet throughout the year. Representatives of other states and international organizations are often invited as guests, with Russia having been a formal member (as part of the G8) from 1997 until its expulsion in 2014.
The G7 is not based on a treaty and has no permanent secretariat or office. It is organized through a presidency that rotates annually among the member states, with the presiding state setting the group's priorities and hosting the summit; Italy presides for 2024. While lacking a legal or institutional basis, the G7 is widely considered to wield significant international influence; it has catalyzed or spearheaded several major global initiatives, including efforts to combat the HIV/AIDS pandemic, provide financial aid to developing countries, and address climate change through the 2015 Paris Agreement. However, the group has been criticized by observers for its allegedly outdated and limited membership, narrow global representation, and ineffectualness.
The G7 countries have together a population of about 780 million people (or almost 10% of the world population), comprise around 50% of worldwide nominal net wealth and as of 2024 about 30% of world GDP.
In the 2020s, discussions on G7 expansion are in full swing. For example, according to Ronald A. Klain writing for the Carnegie Endowment, considering that the G7 members are Eurocentric, that Japan is the only Asian member, and challenges posed by China, it would be reasonable to expand the G7 into the G9 by adding South Korea and Australia.
Contents
History
Origins
The concept of a forum for the capitalist world's major industrialized countries emerged before the 1973 oil crisis. On 25 March 1973, the United States Secretary of the Treasury, George Shultz, convened an informal gathering of finance ministers from West Germany (Helmut Schmidt), France (Valéry Giscard d'Estaing), and the United Kingdom (Anthony Barber) before an upcoming meeting in Washington, DC. United States President Richard Nixon offered the White House as a venue, and the meeting was subsequently held in its library on the ground floor; the original group of four consequently became known as the "Library Group". In mid-1973, at the Spring Meetings of the International Monetary Fund and the World Bank, Shultz proposed the addition of Japan, which all members accepted. The informal gathering of senior financial officials from the United States, United Kingdom, West Germany, Japan, and France became known as the "Group of Five".
In 1974, all five members endured sudden and often troubled changes in leadership. French President Georges Pompidou abruptly died, leading to a fresh presidential election that was closely won by Valéry Giscard d'Estaing. West German Chancellor Willy Brandt, American President Richard Nixon, and Japanese Prime Minister Kakuei Tanaka all resigned due to scandals. In the United Kingdom, a hung election led to a minority government whose subsequent instability prompted another election the same year. Consequently, Nixon's successor, Gerald Ford, proposed a retreat the following year for the group's new leaders to learn about one another.
First summit and expansion
At the initiative of Giscard d'Estaing and his German counterpart, Helmut Schmidt, France hosted a three-day summit in November 1975, inviting the Group of Five plus Italy, forming the "Group of Six" (G6). Taking place at the Château de Rambouillet, the meeting focused on several major economic issues, including the oil crisis, the collapse of the Bretton Woods system, and the ongoing global recession. The result was the 15-point "Declaration of Rambouillet", which, among other positions, announced the group's united commitment to promoting free trade, multilateralism, cooperation with the developing world, and rapprochement with the Eastern Bloc. The members also established plans for future gatherings to take place regularly every year.
In 1976, British Prime Minister Harold Wilson, who had participated in the first G6 summit, resigned from office; Schmidt and Ford believed the group needed an English speaker with more political experience, and advocated for inviting Pierre Trudeau, who had been Prime Minister of Canada for eight years – significantly longer than any G6 leader. Canada was also the next largest advanced economy after the G6 members. The summit in Dorado, Puerto Rico later that year became the first of the current Group of Seven (G7).
In 1977, the United Kingdom, which hosted that year's summit, invited the European Economic Community to join all G7 summits; beginning in 1981, it has attended every gathering through the president of the European Commission and the leader of the country holding the presidency of the Council of the European Union. Since 2009, the then-newly established position of the President of the European Council, who serves as the Union's principal foreign representative, also regularly attends the summits.
Rising profile
Until the 1985 Plaza Accord, meetings between the seven governments' finance ministers were not public knowledge. The Accord, which involved only the original Group of Five, was announced the day before it was finalized, with a communiqué issued afterward. The 1980s also marked the G7's expanded concerns beyond macroeconomic issues, namely with respect to international security and conflict; for example, it sought to address the ongoing conflicts between Iran and Iraq and between the Soviet Union and Afghanistan.
Following the 1994 summit in Naples, Russian officials held separate meetings with leaders of the G7. This informal arrangement was dubbed the "Political 8" (P8), colloquially the G7+1. At the invitation of the G7 leaders, Russian President Boris Yeltsin was invited first as a guest observer, and later as a full participant. After the 1997 meeting, Russia was formally invited to the next meeting and formally joined the group in 1998, resulting in the Group of Eight (G8). Russia was an outlier in the group, as it lacked the national wealth and financial weight of other members, and at the time was not an established liberal democracy. Its invitation, made during a difficult transition to a post-communist economy, is believed to have been motivated by a desire to encourage its political and economic reforms and international engagement.
Russia's membership was suspended in March 2014 in response to its annexation of Crimea. Members stopped short of permanently ejecting the country, and in subsequent years expressed an openness or express desire to reinstate Russian participation. In January 2017, Russia announced it would permanently leave the G8, which came into effect June 2018. In 2020, U.S. President Donald Trump, backed by Italian Prime Minister Giuseppe Conte, advocated for Russia's return; all other members rejected the proposal, and Russia expressed no interest.
Renewed calls for expanded membership
There have been various proposals to expand the G7. The U.S.-based Atlantic Council has held the D-10 Strategy Forum since 2014 with representatives from what it calls "leading democracies" which support a "rules-based democratic order", consisting of all members of the G7 (including the European Union) plus Australia and South Korea. Several democratic countries – including India, Indonesia, Poland, and Spain – participate as observers. Centered around a similar mandate as the G7, the D-10 has been considered by some analysts to be an alternative to the group; This is also favored by various think tanks and former British leader Boris Johnson.
In 2019 under Putin, Russia had signaled support for the inclusion of China, India, and Turkey if the G7 had reinstated Russian membership.
In 2020 under Trump, the U.S. had signaled support for the inclusion of Australia, Brazil, India, and South Korea, plus the reincorporation of Russia. The leaders of the other six G7 members unanimously rejected this proposal.
Also in November 2020, Jared Cohen and Richard Fontaine, writing in Foreign Affairs, suggested that the G7 might be expanded to a "T-12" of "Techno Democracies". Earlier, in June of that same year, the Global Partnership on Artificial Intelligence (GPAI) was announced. Something of a spin-out of the G7, founded by members Canada and France, GPAI's initial membership was 15, including both the EU and India, as well as Australia, Mexico, New Zealand, Singapore, Slovenia, and the Republic of Korea.
Boris Johnson invited representatives of Australia and the Republic of Korea to the June 2021 G7 summit. India was also invited to the 2021 summit, with an aim to "deepen the expertise and experience around the table" along with the other guests, according to a U.K. government statement.
In 2021, French jurist and consultant Eric Garner de Béville, a member of the Cercle Montesquieu, proposed Spain's membership to the G7. American Chargé d'Affaires in Spain, Conrad Tribble, stated that the United States "enthusiastically supports" a "greater" role of Spanish leadership at the international level.
In 2022, Germany confirmed it would be inviting India, against rumours to the contrary.
In 2023, Japan's prime minister Fumio Kishida invited South Korea, Australia, India, Indonesia, Brazil, Vietnam, Comoros, the Cook Islands (representing the Pacific Islands Forum) and Ukraine to the 49th summit hosted in Hiroshima.
Activities and initiatives
The G7 was founded primarily to facilitate shared macroeconomic initiatives in response to contemporary economic problems; the first gathering was centered around the Nixon shock, the 1970s energy crisis, and the ensuing global recession. Since 1975, the group has met annually at summits organized and hosted by whichever country occupies the annually-rotating presidency; since 1987, the G7 Finance Ministers have met at least semi-annually, and up to four times a year at stand-alone meetings.
Beginning in the 1980s, the G7 broadened its areas of concern to include issues of international security, human rights, and global security; for example, during this period, the G7 concerned itself with the ongoing Iran-Iraq War and Soviet occupation of Afghanistan. In the 1990s, it launched a debt-relief program for the 42 heavily indebted poor countries (HIPC); provided $300 million to help build the Shelter Structure over the damaged reactor at Chernobyl; and established the Financial Stability Forum to help in "managing the international monetary system".
At the turn of the 21st century, the G7 began emphasizing engagement with the developing world. At the 1999 summit, the group helped launch the G20, a similar forum made up of the G7 and the next 13 largest economies (including the European Union), in order to "promote dialogue between major industrial and emerging market countries"; the G20 has been touted by some of its members as a replacement for the G7. Having previously announced a plan to cancel 90% of bilateral debt for the HIPC, totaling $100 billion, in 2005 the G7 announced debt reductions of "up to 100%" to be negotiated on a "case by case" basis.
Following the global financial crisis of 2007–2008, which was the worst of its kind since the 1970s, the G7 met twice in Washington, D.C. in 2008 and in Rome, the following February. News media reported that much of the world was looking to the group for leadership and solutions. G7 finance ministers pledged to take "all necessary steps" to stem the crisis, devising an "aggressive action plan" that included providing publicly funded capital infusions to banks in danger of failing. Some analysts criticized the group for seemingly advocating that individual governments develop individual responses to the recession, rather than cohere around a united effort.
On April 2024, the G7 countries agreed to close all coal power plants in 2030-2035 unless their greenhouse gases will be captured or the countries will find another way to align their emissions with the 1.5 degree pathway.
Summit organization
The annual G7 summit is attended by each member's head of government. The member country holding the G7 presidency is responsible for organizing and hosting the year's summit. The serial annual summits can be parsed chronologically in arguably distinct ways, including as the sequence of host countries for the summits has recurred over time and series. Generally every country hosts the summit once every seven years.
Besides a main meeting in June or July, a number of other meetings may take place throughout the year; in 2021 for example, seven tracks existed for finance (4–5 June 2021), environmental (20 and 21 May 2021), health (3–4 June 2021), trade (27–28 May 2021), interior (7–9 September 2021) digital and technology (28–29 April 2021), development (3–5 May 2021) and foreign ministers.
Current leaders
_(cropped).jpg)
.jpg)
.jpg)
.jpg)
.jpg)
| Member | Leader(s) | Minister of Finance | Central Bank Governor | |||
|---|---|---|---|---|---|---|
 Canada |
Prime Minister | Justin Trudeau | Minister of Finance | Chrystia Freeland | Governor | Tiff Macklem |
 France |
President | Emmanuel Macron | Minister of the Economy and Finance | Bruno Le Maire | Governor | François Villeroy de Galhau |
 Germany |
Chancellor | Olaf Scholz | Minister of Finance | Christian Lindner | President | Joachim Nagel |
 Italy |
Prime Minister | Giorgia Meloni | Minister of Economy and Finance | Giancarlo Giorgetti | Governor | Fabio Panetta |
 Japan |
Prime Minister | Fumio Kishida | Minister of Finance | Shunichi Suzuki | Governor | Kazuo Ueda |
 United Kingdom |
Prime Minister | Keir Starmer | Chancellor of the Exchequer | Rachel Reeves | Governor | Andrew Bailey |
 United States |
President | Joe Biden | Secretary of the Treasury | Janet Yellen | Chair | Jerome Powell |
 European Union |
Council President | Charles Michel | Commissioner for Economy | Paolo Gentiloni | President | Christine Lagarde |
| Commission President | Ursula von der Leyen | |||||
Member country data
The G7 is composed of the seven wealthiest advanced countries. The People's Republic of China, according to its data, would be the second-largest with 17.90% of the world net wealth, but is excluded because of its relatively low net wealth per adult and Human Development Index. As of 2021, Crédit Suisse reports the G7 (without the European Union) represents around 53% of the global net wealth; including the EU, the G7 accounts for over 60% of the global net wealth. The combined population of the G7 countries is about 10% of world population.
| Member | Trade mil. USD (2014) | Nominal GDP (USD million) | PPP GDP (Int$ million) | Nominal GDP per capita ($) | PPP GDP per capita (Int$) | HDI (2021) | Population (2022-2023) | Permanent members of UN Security Council | DAC | OECD | Economic classification (IMF) | Currency |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Canada | 947,200 | 2,089,672 | 2,385,124 | 52,722 | 60,177 | 0.936 | 39,891,963 |  |
 |
|
Advanced | Dollar |
| France | 1,212,300 | 2,923,489 | 3,872,729 | 44,408 | 58,828 | 0.903 | 68,042,591 | |
|
|
Euro | |
| Germany | 2,866,600 | 4,308,854 | 5,545,656 | 51,383 | 66,132 | 0.942 | 84,270,625 | |
|
|
||
| Italy | 948,600 | 2,169,745 | 3,195,548 | 36,812 | 44,160 | 0.895 | 58,815,463 | |
|
|
||
| Japan | 1,522,400 | 4,409,738 | 6,456,527 | 35,385 | 51,809 | 0.925 | 124,470,000 | |
|
|
Yen | |
| United Kingdom | 1,189,400 | 3,158,938 | 3,846,931 | 46,371 | 56,471 | 0.929 | 67,026,292 | |
|
|
Pound | |
| United States | 3,944,000 | 26,854,599 | 26,854,599 | 80,034 | 80,034 | 0.921 | 334,748,000 | |
|
|
Dollar | |
| European Union | 4,485,000 | 17,818,782 | 25,399,093 | 39,940 | 56,929 | 0.899 | 446,828,803 | N/A | |
N/A | Advanced / Emerging and Developing | Euro |
| Total (excl. EU) | 12,630,500 | 45,915,035 | 52,157,114 | 59,072 | 67,103 | 0.922 | 777,264,934 |
See also
In Spanish: G7 para niños
- Build Back Better World
- Capitalism
- D-10 Strategy Forum
- Developed country
- G4 (EU)
- G6 (EU)
- G8
- G8+5
- G10 currencies
- G20
- Great power
- Group of Twelve (G12)
- Junior 8
- List of country groupings
- List of G7 leaders
- List of multilateral free trade agreements
- OECD
- Quint
- BRICS
