G8 Reform: Expanding the Dialogue

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G8 Reform: Expanding the Dialogue G8 Reform: Expanding the Dialogue An Overview of the G8’s Ongoing Relationship with the Emerging Economic Countries and Prospects for G8 Reform G8 Research Group Civil Society and Expanded Dialogue Unit Co-Directors and Editors: Vanessa Corlazzoli Janel Smith G8 Research Group Chair: Anthony Navaneelan June 2005 Table of Contents The Group of Eight .....................................................................................................................3 Executive Summary and Introduction..........................................................................................4 The Group of Twenty and The Leaders’ Twenty .........................................................................6 PART ONE Expanding the Dialogue: The Group of Eight .........................................................7 Canada ....................................................................................................................................7 France ...................................................................................................................................13 Germany ...............................................................................................................................16 Italy.......................................................................................................................................23 Japan.....................................................................................................................................28 Russia ...................................................................................................................................32 United Kingdom....................................................................................................................41 United States.........................................................................................................................47 PART TWO Expanding the Dialogue with Emerging Economic Countries ..............................59 Brazil ....................................................................................................................................59 India......................................................................................................................................63 China ....................................................................................................................................71 Mexico..................................................................................................................................80 South Africa..........................................................................................................................84 PART THREE Conclusion........................................................................................................92 Appendix 1: Brazil....................................................................................................................93 Appendix 2: China ....................................................................................................................95 Appendix 3: India .....................................................................................................................97 Appendix 4: Mexico..................................................................................................................99 Appendix 5: South Africa........................................................................................................101 G8 References.........................................................................................................................103 2 G8 Reform: Expanding the Dialogue Civil Society and Expanded Dialogue, G8 Research Group The Group of Eight The Group of Eight (G8) is comprised of the eight leading industrialized democracies in the world: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. Together, these eight states account for 48% of the global economy and 49% of global trade, hold four of the United Nations’ five Permanent Security Council seats, and boast majority shareholder control over the International Monetary Fund (IMF) and the World Bank. The G6 (Canada and Russia excluded) originally met in Rambouillet, France in 1975 to discuss the economic impact of the OPEC oil crisis and the end of the US-dollar gold standard regime. In 1976, they were joined by Canada, with Russia gaining membership in 1998. Each year the leaders of these states meet at an annual summit in what is the most powerful and intimate meeting of global leaders anywhere in the world. Unlike other multilateral meetings, leaders at the G8 Summit meet privately behind closed-doors; there are no aides or intermediaries and there are few scripts of protocols. For some, the G8 is a concert of powers operating the most relevant center for global governance, with its flexibility and dynamism making it far more effective than the post-1945 institutions, namely the United Nations (UN). For others, the G8 is an unelected ‘committee that runs the world,’ an epicenter of global capitalism and neo-colonialism. In the past the G8 has discussed and made joint commitments on a variety of issue areas that relate to the international economy, nuclear disarmament, peacekeeping, terrorism, energy, development, climate change, and regional security. While there are disagreements over its intentions, few deny the reach and scope of the G8’s influence and control. While originally conceived as an economic gathering, the G8 Summit has now become a major arena for international action on HIV/AIDS, weapons of mass destruction (WMDs), terrorism and global trade. Past G8 Summits have produced such landmark agreements as the 1995 reform of the World Bank and IMF, the 1999 Enhanced HIPC Initiative for debt relief, and the 2001 Global Fund for HIV/AIDS, Malaria and Tuberculosis. But with increased prestige comes increased scrutiny. Since the 2001 Summit in Genoa, alternative-globalization advocates have made the G8 Summit a central focus in their debates over the economic and environmental responsibilities of the North to the South. Their concerns have also raised bold new questions concerning issues of accountability and transparency in globalization and have succeeded in shifting the G8’s attention towards global poverty, the Millennium Development Goals and the African continent. The agenda for the 2005 Gleneagles Summit, dominated by African Development and Climate Change, would have been highly improbable even ten years ago and is evidence of the G8’s responsiveness to critiques over its legitimacy and policy-focus. Unlike the United Nations or North American Treaty Organization (NATO), there is no permanent secretariat, staff or headquarters for the G8. Instead, the Group of Eight is maintained through the cooperation and coordination of national bureaucrats primarily in the foreign affairs and finance ministries of member-states. The Presidency of the G8 rotates on an annual basis. This year the United Kingdom holds the G8 Presidency, followed by the Russian Federation in 2006 and Germany in 2007. 3 G8 Reform: Expanding the Dialogue Civil Society and Expanded Dialogue, G8 Research Group Executive Summary and Introduction The G8 as an institution has a lot of power, not because it represents a majority of the world’s population, but because it is comprised of members from wealthy countries who can alter and create policies that affect the rest of the world. The G8 has come under continuous criticism for not being an inclusive or representative body. There have been calls for the G8 to reform, or to dismantle entirely to allow other multilateral organizations to take its place. Many see the G8 as an archaic cold war institution that does not reflect the current global situation.1 Furthermore, the G8 does not include the two most populous countries in the world China and India and all of the member states are highly industrialized countries from the “North” with no representation from the Middle East, Latin America, or Africa. For its part, the G8 has taken some actions to address these concerns. Since the 2001 Genoa Summit, whenever dealing with a regional issue, such as African development, the G8 has extended invitations to a selective number of leaders from the particular region. In fact, since 2002, leaders from Africa have been invited to meet for short discussions with the G8 leaders during each summit. At the 2004 Sea Island Summit, the United States also extended this invitation to leaders from the Middle East to contribute to the creation of a “Broader Middle East Initiative.” In 2003 at the Evian Summit, French President Jacques Chirac also invited the leaders of four emerging countries: China, India, Mexico and Brazil to participate in the G8’s dialogue. On 28 March 2005, Tony Blair followed President Chirac’s lead by extending an invitation to attend this year’s summit in Gleneagles, Scotland to the four leading emerging countries and South Africa. More commonly, the hosting G8 country has invited leaders or ministers from other institutions to different Ministerial Meetings. In the past, the President of the European Commission, the World Bank, the International Monetary Fund (IMF) and the Secretary-General for the United Nations have been asked to participate in these meetings and have been involved in some of the discussion at certain summits. This report specifically focuses on the involvement of the G8 member states in the G8 expanded
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