G20 – international economics

G20 to replace G8

Article published on the 2009-09-25 Latest update 2009-09-25 09:35 TU

(Photo: Reuters)

The G20 group of the world biggest developed and most promising developing economies will replace the G8 as the world’s premier economic body, the White House announced Friday.

The shift is meant to widen economic consultation and decision making from a restricted elite group of developed economies to include those most likely to be important in the future.

"Today, leaders endorsed the G20 as the premier forum for their international economic cooperation," the statement said.

"This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest."

The newly promoted G20’s first task will be to tighten financial regulations in an attempt to avoid the abuses that led to last year’s economic meltdown.

A draft text, leaked to the media, said the group would agree to regulate bankers’ bonuses and call for government stimulus measures to be maintained until the world economic recovery could be assured.

The G8, which is made up only of wealthy nations Britain, Canada, France, Germany, Italy, Japan, Russia, and the United States, has served in various forms as the premier economic forum since 1975 and held closely watched annual summits.

But more recently attention has turned to the expanded G20, which adds Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea and Turkey to the club.