The Group of Twenty (G20) is the premier intergovernmental forum for international economic
cooperation. The forum plays an important role in shaping and strengthening global architecture and
governance on all major international economic issues.
Why does the G20 matter?
Together, the nations of the G20 account for more than 85 percent of global economic output, around
75 percent of global exports, and about 80 percent of the world’s population. These figures have
remained relatively stable while the corresponding rates for Group of Seven (G7) nations, a smaller
group of advanced democracies, have shrunk, as larger emerging markets take up a relatively greater
share of the world’s economy.
What does the G20 discuss?
The G20 started in 1999, following the Asian financial crisis, as a forum for finance ministers and central
bank governors from the major developed and emerging economies to discuss global financial issues.
Amid the global financial crisis in 2008, it grew into the leaders’ summit, a place where presidents and
prime ministers could get together for two days to try to solve the world’s economic problems.
Successive meetings of G20 leaders were held in Washington DC in 2008, London in early 2009 and
Pittsburgh in late 2009, and have since become annual fixtures.
In the run-up to summits, senior officials known as "sherpas" thrash out the issues for discussion, with
the aim of getting G20 members to reach agreement at the summit. L…
Why the summit matters?
While the G7 is made up of rich countries, the G20 brings together leaders from both developed and
emerging economies, representing a far broader range of views.
It has been credited with reaching important agreements such as the trillion-dollar pledge in 2009 to
help struggling economies during the global financial crisis.
However, it has sometimes proved difficult for such a diverse group of countries to reach a consensus.
The hope that the G20 agenda would broaden beyond the global economy to include discussion of
political issues, such as security and climate change, has not really materialized.
G20 is a significant driver of globalization, particularly in the realms of technology, innovation, and
industry. It serves as a platform for economic cooperation and policy coordination among the world’s
largest economies, representing about 85% of global GDP, 75% of international trade, and two-thirds
of the world’s population.
1. Promoting Technology Integration and Digital Transformation
The G20 encourages global cooperation on digital technologies and innovation, aiming to bridge
technological gaps between countries.
2. Digital Economy Task Force (DETF)
Established in 2016, the DETF focuses on creating inclusive digital economies. For instance, during the
Saudi presidency in 2020, the G20 endorsed AI Principles to promote the ethical use of artificial
intelligence globally.
Example: G20 Smart Cities Alliance
This initiative, led by the World Economic Forum, collaborates with G20 countries to develop
frameworks for smart city technologies, ensuring interoperability and sustainability across urban areas
worldwide.
2. Advancing Industrial Cooperation Across Borders
The G20 supports technology transfer and infrastructure investment in developing nations, fostering
inclusive globalization.
Example: Digital Access Initiatives
Under the Italian presidency in 2021, the G20 supported initiatives to expand internet access and
promote digital literacy, especially in underdeveloped regions, to integrate them into the global
economy.
Example: Global Partnership on Artificial Intelligence (GPAI)
G20 countries like Canada, France, and Japan are key contributors to GPAI, which aims to share best
practices in AI development and deployment.
Encouraging Innovation through Collaboration
The G20 encourages collaborative research and development to spur global technological
advancements.
1. Pandemic Innovation
During the COVID-19 pandemic, G20 nations supported partnerships like COVAX and genomic
surveillance technologies, enabling the rapid development of vaccines and treatments.
2. International Research Cooperation
Initiatives such as Horizon Europe involve G20 countries and promote cross-border research in AI, space
technology, and quantum computing.
