G8 Vs. G20

Difference Between G8 And G20

In order to look after the international affairs and issues, there are certain coalitions of different nations of the world and G20 as well as G8 two of these. The predecessor of these two was G7 that was a coalition of seven countries that had come together in the year of 1975 in order to protest against the oil ban that the Arab countries had imposed in the year 1973 so as to depict their dislike for the interference of the United Kingdom and the US in the war of Yom Kippur. For the same reasons, the Arabs had also entered into a war with the country of Israel but ended up losing it because of the military as well as weapon support that the US and the UK government provided Israel.

The weapons to the Arab countries were provided by the U.S.S.R that was almost about to break at that time and as a result did not become a part of the coalition. The G7 was made up of Japan, Britain, France, Italy, Canada, United States and Germany. In the year of 1997 Russia also joined the coalition of countries and G7 thus came to be named as G8. Post addition of Russia, the G8 chalked out several economic as well as political rules, regulations as well as policies that affected several other countries of the world.

In the international scenario G7 as well as G8 became popular as the ones that made all the economic as well as political policies and also had the power to disrupt the same. In the present scenario, G20 is the successor of G8 having the countries like US, China, Turkey, Canada, France, Brazil, Republic of Korea, The European Union, Russia, Argentina, India, Mexico, Saudi Arabia, France, Russia, South Africa, UK, Canada etc. as a part of the coalition.

In spite of the fact that all the G20 member countries are supposed to be treated with equality, in reality, the countries that were the member of G8 show an advantage over the newly added ones as far as the political as well as the economic policy making is concerned. As far as the policies related to economy, that have been decided by G20 for the economic year of 2010, are concerned, rules for Bank capital improvement, disclosure of reimbursement policies and the separation of compensation portions for risk as well as performance, are included. They nothing but economic policies by means of G20 wants to do away with any economic crisis in future.

In relation to the inclusion of other countries in the group by G8, several theories have been formulated, the first being the theory relating to Economics, as there are many freshly added developing countries that in future hold the capacity to alter the global economy (this was mainly targeted to the all-powerful emerging China). The invitation of China into the G20 was mainly aimed at benefitting the other members economically by their intervention into the economy of China. There is another theory that focuses on the Economic calamity that is experienced by the countries of the west (UK and US). There are many Eastern countries like China, Saudi Arabia and South Korea, invited into the G20 which could help the western economies by giving them monetary help in the form of debts.

SUMMARY

  1. It was the G7 that gave birth to G8 and G20. G7 is a coalition containing 7 countries.
  2. G7 was formed because of the interference of US and UK in the Yon Kippur war, to oppose the oil restriction imposed by the Arab nations. The G7 manipulated Global, political as well as economic decision making process.
  3. Russia was included into G7 in the year 1997 and the coalition was termed G8.
  4. 16 other international countries were added to the coalition in the year 1999 and it was called G20. The most important additions were South Korea, China and Saudi Arabia. The primary aim of G20is to avoid the current and future economic calamities.

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