The History of the G20

Since the first G20 Leaders Summit two years ago in Washington
D.C., the Group of 20 nations has worked together to move the world
beyond the financial crisis to balanced and sustainable growth.
By pursuing globally coordinated policies, the G20 helped prevent
the further collapse of the international financial system in
the wake of the United States’ subprime mortgage meltdown and
the subsequent Lehman Brothers bankruptcy, even as it laid
the groundwork for reforms that would reduce global volatility
going forward.

The success of that first meeting, held on November 15, 2008, paved the way for future summits. Among the agreements reach- ed in Washington D.C., the G20 leaders committed to strengthening policy cooperation, reforming the regulatory and supervisory framework of the world’s financial markets, improving the existing international financial institutions and avoiding protectionism.

During the next two summits, in London and Pittsburgh, the G20 continued to tackle the financial crisis, agreeing to a $5 trillion stimulus package and following through on previously made commitments. At the end of the London Summit, the final commu- niqué focused on three major subject areas: the strengthening of the financial system, funding through international financial institutions, and implementation of action plans. In the course of those meetings, the G20 firmly established itself at the center of global economic discussion.

At the third summit, held in Pittsburgh on September 24-25, 2009, the G20 was designated the premier forum for international economic cooperation, ushering in a new era of global governance. The group agreed to meet annually beginning in 2011 (the G20 is meeting twice in 2010, as leaders work to stabilize economic growth). On the agenda in Pittsburgh: reform of international financial institutions; global economy and trade growth; climate financing and energy security and financial regulatory reform. At the end of these discussions, the G20 came out with the “Framework for Strong, Sustainable and Balanced Growth,” now a lynchpin of G20 discussions.

Although the G20 leaders began meeting as a group only in the last few years, the G20 finance ministers have been meeting an- nually since 1999. That first meeting was held in the wake of the Asian Financial Crisis, when world leaders recognized the increasing interdependence of the world’s economies. Those meetings in turn had grown out of meetings coordinated by the G7 (the US, Japan, United Kingdom, France, Germany, Canada and Italy) in the years following the 1974 oil shock. The emergence of the G20 stemmed from the changing economic reality. By the end of the 1990s, emerging markets played an increasingly important part in the global financial system, and that needed to be reflected in international economic governance. Today, the G20 represents two thirds of the world’s population and nearly 88% of the world’s economy.

The G20 promotes open and constructive discussion among systemically important countries on key issues related to financial and economic policies. By enhancing cooperation and coordination, the G20 works to bring about stable and sustainable econo- mic growth across the globe.

The G20 does not have a permanent staff. The chair country supplies the secretariat for the duration of its one year term.

The position of chair country rotates between regional groups of countries each year, then the specific country to be assigned the role of chair is chosen from within that group during a series of meetings.

1. Group 1 (01.06) Canada [01) Australia (06) Saudi Arabia America

The G20 Management Troika includes the most recent, the current and the next chair. During the years preceding and following its host year, a country holds the position of co-chair and acts as an advisor to the Troika. Troika members work closely with the chair to set the G20 agenda, frame the discussion and produce a communiqué. In addition, the co-chairs participate in meetings of G20 steering groups.

• 1999 Ger