The world is evolving and becoming a global village. The political and financial condition of one region affects the other region. The oil crises and the collapse of Bretton Woods fixed exchange rates had the entire world at a threshold. These crucial economic crises in the 1970s prompted the developed countries to form a group to discuss international economic policies
The aim of these groups is industrial stability and sustainable growth. The G8 comprises industrialized and developed countries. The G20 is composed of the developing economies of the world.
G8 vs G20
The difference between G8 and G20 is that G8 refers to the group of profoundly industrialized countries. The G8 group holds annual meetings to talk on issues like global security, terrorism, and crisis management. G8 member nations agree on a set of plans and objectives during their annual meeting. On the other hand, G20 is an assembly of international economic cooperation. The idea of a group of 20 (G20) unfolded out in a G7 meeting as a comeback to the Asian financial crises in the late 90s. G20 consists of major economies of the world as well as the G7 members.
G8 came into existence in the year 1975. It includes economically developed countries like France, Germany, Italy, Japan. Uk and the US-allied(G6). In 1976 Canada joined the alliance(G6) in 1997, Russia formally creating the G8. The crucial point of discussion in the schedule is the financial and economic concerns. Ministers of the member countries get together frequently to discuss matters of mutual interest.
The G20 is an informal body consisting of 19 nations and the European Union, which comprise the G20. The G20 embodies representatives of the International Monetary Fund(IMF) and the World Bank. The finance ministers of representative countries hold discussions on issues of global importance. The G20 plays a pivotal role as the member countries make up to 80% of the world trade.
Comparison Table Between G8 and G20
|Parameters of Comparison||G8||G20|
|Purpose||G8 has to address international economic and global issues.||G20 has to coordinate with member nations to achieve global economic stability and to prevent future financial crises.|
|Members||G8 consists of economically powerful nations.||G20 consists of major growing economies of the world|
|Date of establishment||The first summit was held in the year 1975 in Paris.||G20 was established in 1999.|
|Number of members||G8 comprises eight-member nations.||G20 comprises 20 member nations.|
|Nature of Members||Finance ministers and bank governors are part of G8.||High-rank ministers, foreign ministers, and leaders of government are part of the G20.|
What is G8?
The enormous worldwide money troubles in the early 1970s prompted the Finance Ministers of Britain, France, Germany, and the US to form a library group in 1973. The group name was after the initial meeting in the White House Library. The G6 consisted of France, Germany, Italy, Japan, the UK, and America.
It interchanged to G7 in 1976 when Canada joined and unified to G7. Later on, in 1998, Russia followed along, and G8 got established. The G7 established in 1976 was ground enough for the heads of state and government to consult on international economic policy. The first summit was in 1975 – formally knows as the G6.
The presidentship of the G8 rotates yearly. The nation conducting the presidentship is in charge of holding and arranging the yearly summit. The summit is an opportunity for the leaders to have an open discussion of crucial global issues. Before the summit, the ambassadors, secretaries provide the groundwork for discussion and the follow-up meeting.
The G8 forum provides an opportunity to discuss global challenges. The standards coordinated and commitments taken ensures prosperity and economic growth globally. Since the 1990’s the summit has garnered intense media attention and demonstrations.
What is G20?
The G20 comprises a mixture of sizable, emerging, and advanced economies. These countries amount to 2/3rd of the world’s population and account for 80% of the global trade. The G20 consists of 19 nations and the EU. The Group of Seven founded G20, and it got established on 26th September 1999.
The associates of the G20 are Argentina, Saudi Arabia, South Africa, Australia, Canada, Russia, UK, EU, USA, Turkey, India, Brazil, France, Mexico, Korea, Italy, Germany, China, Japan, and Indonesia. The president of G20 invites several non-members to participate and contribute to the G20 agenda. It ensures a broader international global perspective. The work of G20 supported by several international organizations provides advice to policymakers.
The G20 Presidency rotates annually to ensure regional balance. Since it is a nonformal forum, the appointment of a permanent secretariat is not considered essential. The presidency takes the responsibility to consolidate the G20 schedule in consultation with the members and the global requirement. To ensure continuity of presidency, ‘Troika’ is supported. It comprises the current, immediate past, and the upcoming hosting country. During the Turkey summit, the members of the Troika were Turkey, Australia, and China.
Main Differences Between G8 and G20
- The G8 consists of economically powerful nations. The G20 consists of the growing economies of the world.
- The G8 members comprise eight countries. The G20 consists of 19 countries and European Nations.
- The G8 got established in the year 1975. The G20 got established in the year 1997.
- The G8 members consist of industrialized developed nations. The G20 is an informal group consisting of the G8 members and the other 12 countries.
- The G8 group consists of finance ministers and bank governors. The G20 group consists of high-rank ministers, foreign ministers, and leaders of government.
Both the G8 and G20 have solved and addressed a variety of issues. Meaningful steps are taken for resources such as Energy, intellectual rights, safety, regional issues. Forum leaders take steps to make the world a better and safer place. The G8 has had a real impact on making lives better for African citizens. Climate change is something both G8 and G20 address. They power a better, cleaner future by promoting the use of renewable energy sources. Both G8 and G20 groups aim at developing and having a sustainable future.