G20 vs. G8

Difference Between G20 and G8 G20 and G8 are short terms used to indicate forums of the industrialized…

Difference Between G20 and G8

G20 and G8 are short terms used to indicate forums of the industrialized and developed countries.

G8 happened due to request of France in 1975 which tied France, Germany, Italy, Japan, UK and the US (G6)n together. It was then called G6, but when Canada joined in 1976, the coalition was called G7. It became G8 in 1997 when Russia joined the group and since then the coalition is called G8. It is a surprising fact that, European Union is a part of G8 however it is not permitted to host any of the summits that was organized by G8.

G20 is an informal group made up of 19 nations and the European Union, thus bringing the number to 20. It also includes representatives of International Monetary Fund (IMF) and the World Bank. This group originated due to the suggestion of G7 in 1997 to provide solutions to global financial crisis. Since then, every winter, finance ministers of these countries hold discussions on issues that are important globally. G20 exerts considerable global economic influence as these countries make up 85% of the gross national product of the world and almost 80% of the world trade. Since the suggestion of the US President in 2008 that G20 should play a greater role in resolving global economic crisis, the group has gradually grown and annual meetings which are attended by finance ministers and central bank governors of all the member countries began to take place.

Both G8 and G20 are similar as there is no permanent Presidential organization among the members. Since the evolution of G20, it has taken over G8 regarding the financial issues but G8 is still there in other matters like health, education, trade, energy, pollution etc.

 

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