The contradiction of economic status is inbuilt in the world economy. The advanced industrialized countries have the desired to grow further with the expansion of their economy world over, and at the same time, developing countries want to advance more economically, and try to be at par with developed or highly industrialized countries. This contradiction forces them to get united and formed a group to look after their mutual interests.
Formation of G7 Countries
he 1973 oil crisis has impacted the economy world over when the initiative was taken by the advanced industrialized countries namely the United States, the United Kingdom, West Germany, Japan, and France to discuss the global economic crisis, and the need for a solution. At that time the necessity of formation of a group amongst them was felt. 1975 the Group of Six Counties was formed adding Italy on the list. Later in 1976, Canada was added and it became the Group of Seven Counties. Hence, presently the composition of G7 Countries is Canada, France, Germany, Italy, the United Kingdom, and the United States. From the year 1977, the representative of the European Union even being a nonmember is also attending the annual summit.
The Objective of G7 Countries
50% of the world economy is controlled by the members of G7 Countries, and they want to protect their share of the world economy, also desire to increase the share in the advent of improving the world economy.
The G7 Countries meet every year to discuss the issues related to important global economic (financial crisis or monetary systems), oil crisis, political, social and security issues. Since its inception, they are very vocal about preventing the global economic crisis so that they can improve their economy.
It was noted in the 44th summit held in Canada in 2018 that the economic share of G7 Countries has increased to 58% of the global net wealth which is $317 trillion further widen the inequality. The global GDP share is 46% and 32% in terms of nominal values, and purchasing power parity.
Inclusion of Russia
Russia was included considering its economical strength and share in the world economy. In 1997 Russia joined in G7 Countries and made it G8 Countries. Russia continued to be the member up to the year 2014. In 2014 the 41st Summit was to be held in Russia. But that was canceled because of the annexation of Crimea by Russia. The membership of Russia has also cancelled the group once again become G7 from the formation of G8.
- The yearly meeting of G7 Countries is known as summits. The last summit was held in France on August 25–27, 2019 which was the 45th summit. The main decisions of the 45th are:
- The aid package for $20 million to help to rescue fires raging in Amazon Rainforest
- The WTO to act promptly by settling the dispute and protect intellectual property rights
- Reaching agreement in 2020 related to OECD
- To ensure that Iran never acquires a nuclear weapon
- Supporting truce in Libya for long time ceasefire
- Reaffirms the existence and the importance Sino-British agreement on Hong KongIndian Prime Minister Mr. Narendra Modi was personally invited by the French president to attend the summit.