G7 Expansion – Burning Issues – Free PDF Download

DETAILS

• G7 stands for “Group of Seven” industrialized nations. It used to be known as the G8 (Group of Eight) until 2014 when Russia was excluded because of its annexation of Crimea from Ukraine.
• France, Italy, Japan, the United Kingdom, the United States and West Germany formed the Group of Six in 1975 so that the non communist powers could come together to discuss economic concerns, which at the time included inflation and recession following an OPEC oil embargo.

GROUP OF SEVEN

• The Group of Seven (G7) is an international intergovernmental economic organization consisting of the seven largest IMF-advanced economies in the world: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

IMF ADVANCED ECONOMIES

POINT TO NOTE

• Since India and Russia are not advanced economies, however this has never hindered the acceptance of a country into this group.
• Russian President Boris Yeltsin was invited first as a guest observer, 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 a new governmental political forum, the Group of Eight or G8. Russia was kicked out in 2014 due to events in Ukraine

POINT TO NOTE

• If G-7 is expanded into G-10 or G11 then do not confuse it with an already existing group called “Group of Ten (GAB Countries)”
• Countries that agreed to participate in the General Arrangements to Borrow (GAB), an agreement to provide the International Monetary Fund (IMF) with additional funds to increase its lending ability.

G-10 GAB COUNTRIES

PROPOSED G –7 EXPANSION

• “I don’t feel that as a G7 it properly represents what’s going on in the world. It’s a very outdated group of countries,” said Trump

POINTS TO NOTE

• Eventhough U.S and India have increased cooperation to a large extent there is no international forum where the leaders of two nations meet regularly without the presence of China (excluding 2+2 meeting)
• India meets leaders of Russia and China annually multiple times during BRICS summit, SCO Summit and then G-20 summit

GOOD NEWS FOR INDIA

• If India joins the expanded G-7 group then it will open more economic opportunities for India. There are already talksofmakingD-10groupsto limit Chinese influence in the field of 5G technology. Similarly more proposals could come in the future

U.S HAS BEEN HINTING TOWARDS A MORE PROSPEROUS INDIA

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