DOCSLIB.ORG

The Group of Twenty: a History

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Group of Twenty: a History THE GROUP OF TWENTY : A H ISTORY The study of the G-20’s History is revealing. A new institution established less than 10 years ago has emerged as a central player in the global financial architecture and an effective contributor to global economic and financial stability. While some operational challenges persist, as is typical of any new institution, the lessons from the study of the contribution of the G-20 to global economic and financial stability are important. Because of the work of the G-20 we are already witnessing evidence of the benefits of shifting to a new model of multilateral engagement. Excerpt from the closing address of President Mbeki of South Africa to G-20 Finance Ministers and Central Bank Governors, 18 November 2007, Kleinmond, Western Cape. 2 Table of Contents Excerpt from a Speech by President Mbeki....................................................................2 Executive Summary...........................................................................................................5 The Group of Twenty: a History ......................................................................................7 Preface............................................................................................................................7 Background....................................................................................................................8 The G-22 .............................................................................................................12 The G-33 .............................................................................................................15 The Formation of the G-20 and Its Structure...............................................................17 Mandate of the G-X.............................................................................................18 Reform of the Interim Committee ........................................................................19 G-20 Links to the Bretton Woods Institutions .....................................................19 G-20 Membership ...............................................................................................20 Chair of the G-20 and the Establishment of the Troika ......................................22 Processes .............................................................................................................24 Response to the Establishment of the G-20 .........................................................25 G-20 Objectives, Work Programme and Evolution.....................................................27 Members’ Assessment of Objectives and Work Programme ..............................39 Relationship of the G-20 to Other International Institutions and Groups....................42 The G-7 and the G-20 .........................................................................................45 Operational Effectiveness of the G-20.........................................................................46 Institutional Effectiveness of the G-20 ........................................................................48 Looking Forward .........................................................................................................53 References....................................................................................................................55 Annex A: Study Group Participants..............................................................................58 Annex B: Officials Prominent in the Establishment of the G-20 who were Interviewed for this Report...........................................................................59 Annex C: Summaries of Past Chairs, Communiqués and Background Documents .60 Chair Summary, 1999 (Canada) ..................................................................................60 Communiqué, 1999......................................................................................................63 Background Documents, 1999.....................................................................................64 Chair Summary, 2000 (Canada) ..................................................................................65 Communiqué, 2000......................................................................................................68 3 Background Documents, 2000.....................................................................................70 Chair Summary, 2001 (Canada) ..................................................................................71 Communiqué, 2001......................................................................................................74 Background Documents, 2001.....................................................................................75 Chair Summary, 2002 (India) ......................................................................................76 Communiqué, 2002......................................................................................................82 Background Documents, 2002.....................................................................................84 Chair Summary, 2003 (Mexico) ..................................................................................85 Communiqué, 2003......................................................................................................89 Background Documents, 2003.....................................................................................91 Chair Summary, 2004 (Germany)................................................................................92 Communiqué, 2004......................................................................................................96 Background Documents, 2004.....................................................................................99 Chair Summary, 2005 (China)...................................................................................100 Communiqué, 2005....................................................................................................103 Background Documents, 2005...................................................................................105 Chair Summary, 2006 (Australia)..............................................................................106 Communiqué, 2006....................................................................................................113 Background Documents, 2006...................................................................................117 Chair Summary, 2007 (South Africa)........................................................................118 Communiqué, 2007....................................................................................................121 Background Documents, 2007...................................................................................126 Annex D: Charts ............................................................................................................127 Nominal GDP.............................................................................................................127 Purchasing Power Parity (PPP) GDP.........................................................................127 Trade as a Percentage of Nominal Global GDP ........................................................128 Foreign Reserves........................................................................................................128 Global Financial Integration ......................................................................................129 Annex E: Groups for G-20 Chair Rotation .................................................................130 4 The Group of Twenty: A History Executive Summary In September 1999, the finance ministers and central bank governors of the Group of Seven countries (the G-7) announced their intention to “broaden the dialogue on key economic and financial policy issues among systemically significant economies and promote co-operation to achieve stable and sustainable world economic growth that benefits all.” This announcement marked the official birth of what subsequently became known as the Group of Twenty countries (the G-20). This new international group was launched primarily to address challenges to international financial stability posed by the widening crisis in emerging economies that had begun in Asia in 1997. Although ad hoc groups had been initially struck in an effort to deal with these issues, it became increasingly apparent that a permanent forum for informal dialogue between advanced and emerging economies was required. The G-20, whose membership consists of systemically important advanced and emerging economies, representing all regions of the globe, the European Union, and the Bretton Woods institutions, filled an important gap in the governance structure of the international economic and financial system. The establishment of the G-20 recognised the considerable changes in the international economic landscape over the previous decades. The growing importance of emerging economies, along with the increasing integration of the global economy and financial markets, underscored the importance of broadening the scope of international economic and financial co-operation. The G-20’s mandate was to help shape the international agenda, to discuss economic and financial issues in areas where consensus had not yet been achieved, and to “lead by example.” In particular, the Group was seen as an important forum for the discussion of ways to prevent and resolve international
Load more

Recommended publications
  • 2016 Annual Meetings of the Boards of Governors
    THE WORLD BANK GROUP Public Disclosure Authorized 2016 ANNUAL MEETINGS OF THE BOARDS OF GOVERNORS Public Disclosure Authorized SUMMARY PROCEEDINGS Public Disclosure Authorized Washington, D.C. October 7-9, 2016 Public Disclosure Authorized THE WORLD BANK GROUP Headquarters 1818 H Street, NW Washington, D.C. 20433 U.S.A. Phone: (202) 473-1000 Fax: (202) 477-6391 Internet: www.worldbankgroup.org iii INTRODUCTORY NOTE The 2016 Annual Meetings of the Boards of Governors of the World Bank Group (Bank), which consist of the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), the International Finance Corporation (IFC), International Centre for the Settlement of Investment Disputes (ICSID), and the Multilateral Investment Guarantee Agency (MIGA), held jointly with the International Monetary Fund (Fund), took place on October 7, 2016 in Washington, D.C. The Honorable Mauricio Cárdenas, Governor of the Bank and Fund for Colombia, served as the Chairman. In Committee Meetings and the Plenary Session, a joint session with the Board of Governors of the International Monetary Fund, the Board considered and took action on reports and recommendations submitted by the Executive Directors, and on matters raised during the Meeting. These proceedings outline the work of the 70th Annual Meeting and the final decisions taken by the Board of Governors. They record, in alphabetical order by member countries, the texts of statements by Governors and the resolutions and reports adopted by the Boards of Governors of the World Bank Group. In addition, the Development Committee discussed the Forward Look – A Vision for the World Bank Group in 2030, and the Dynamic Formula – Report to Governors Annual Meetings 2016.
    [Show full text]
  • Global Finance's Central Banker Report Cards 2021
    Global Finance’s Central Banker Report Cards 2021 NEW YORK, September 1, 2021 — Global Finance magazine has released the names of Central Bank Governors who earned “A” or “A-” grades as part of its Central Banker Report Cards 2021. The full Central Banker Report Cards 2021 report and grade list will appear in Global Finance’s October print and digital editions and online at GFMag.com. The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of 101 key countries and territories including the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States and the Central Bank of West African States. About Global Finance Grades are based on an “A” to “F” scale for success in areas such as inflation control, economic Global Finance, founded in growth goals, currency stability and interest rate management. (“A” represents an excellent 1987, has a circulation of performance down through “F” for outright failure.) Subjective criteria also apply. 50,000 and readers in 191 countries. Global Finance’s “With the pandemic still surging in many areas, and inflation emerging as a major area of audience includes senior concern once again, the world’s central bankers are confronting multiple challenges from corporate and financial multiple directions,” said Global Finance publisher and editorial director Joseph Giarraputo. officers responsible for making investment and strategic “Global Finance’s annual Central Banker Report Cards show which financial policy leaders are decisions at multinational succeeding in the face of adversity and which are falling behind.” companies and financial The Central Bankers earning an “A” grade in the Global Finance Central Banker Report Card institutions.
    [Show full text]
  • DEFENDING the WOLF the Useful Contradiction of the Bundesbank Carlo Bastasin
    DEFENDING THE WOLF The Useful Contradiction of the Bundesbank Carlo Bastasin SEP Policy Brief No. 1 - 2014 The Deutsche Bundesbank, the German central bank, is commonly regarded as the Euroarea's boogeyman. The pressure imparted by the German monetary authority, for instance, rendered the European Central Bank reluctant to follow the footprints of the Federal Reserve and of other central banks, and engage in non- standard monetary policy measures that might rapidly put an end to the crisis that has been plaguing the euro zone. At several stages, during the current crisis, the ECB has been forced to take actions and prevent severe economic and financial dislocations. Given the institutional vacuum at the area-wide level and the lack of political capacity of the other institutions, the European Central Bank had often to move across the borders of its traditional domain. This has given reason to a slew of criticisms repeatedly and loudly voiced by the Bundesbank. Being also the most vocal policy actor evoking the fiscal risks associated with effecting implicit cross-border transfers via the ECB's balance sheet, the Bundesbank has appeared to have a “non- monetary” hidden agenda or even a “national political” mission. In fact, the Bundesbank has regularly appealed to two fundamental principles of sound economic and monetary policy management that cannot be easily overlooked by anybody concerned that monetary policy may lose its ability to preserve price stability. Should monetary independence be eroded by the increasing tasks devolved to the central banks, wider economic and political consequences might then arise. The first principle is the need to avoid fiscal dominance, not allowing inflation to be determined by the level of fiscal debts; the second is the “principle of responsibility” that sees a contradiction if individual responsibility is blurred by the intervention of joint liability as in the case of a State running unsound fiscal policies and being automatically bailed out by the mutualization of its liabilities.
    [Show full text]
  • Local Currency Bond Markets Conference South African Reserve Bank (SARB) Conference Centre, Pretoria, South Africa
    Local Currency Bond Markets Conference South African Reserve Bank (SARB) Conference Centre, Pretoria, South Africa Thursday, 8 March 2018 Venue: SARB Conference Centre Auditorium 11.00 – 12.00 Registration 12.00 – 13.00 Finger lunch Programme Director: Mr Nimrod Lidovho, SARB 13.00 – 13.15 Welcome address by Governor Lesetja Kganyago, SARB 13.15 – 13.45 Opening remarks "Facing up to the original sin - The German experience of establishing a local currency bond market" by Andreas Dombret, Board Member, Deutsche Bundesbank 13.45 – 14.30 Keynote “Local currency markets – the case of a development bank” Joachim Nagel, Member of the Executive Board, KfW 14.30 – 14.45 Coffee break 14.45 – 15.30 “African growth and prosperity: the important role of local currency bond markets” by Stacie Warden, Executive Director, Center for Financial Markets, Milken Institute 15.30 – 16.15 Expert speech “Challenges of development of LCBM in emerging markets” Leon Myburgh, SARB 16.15 – 17.15 Bilateral talk “CWA: Development of financial markets in Africa” moderated by Deputy Governor Daniel Mminele, SARB Dondo Mogajane and Ludger Schuknecht, co-chairs of G-20 Africa Advisory Group, ZAF/GER Venue: SARB Conference Centre Banqueting Room 18.00 – 21.00 Conference dinner 18.00 – 18.20 Dinner remarks by Deputy Governor Daniel Mminele, SARB Friday, 9 March 2018 Venue: SARB Conference Centre Auditorium Programme Director: Mr Martin Dinkelborg, Deutsche Bundesbank 9.00 – 10.30 Panel discussion “The role of central banks in establishing primary markets” moderated by Zafar
    [Show full text]
  • The Dissolution of States and Membership in the United Nations Michael P
    Cornell International Law Journal Volume 28 Article 2 Issue 1 Winter 1995 Musical Chairs: The Dissolution of States and Membership in the United Nations Michael P. Scharf Follow this and additional works at: http://scholarship.law.cornell.edu/cilj Part of the Law Commons Recommended Citation Scharf, Michael P. (1995) "Musical Chairs: The Dissolution of States and Membership in the United Nations," Cornell International Law Journal: Vol. 28: Iss. 1, Article 2. Available at: http://scholarship.law.cornell.edu/cilj/vol28/iss1/2 This Article is brought to you for free and open access by Scholarship@Cornell Law: A Digital Repository. It has been accepted for inclusion in Cornell International Law Journal by an authorized administrator of Scholarship@Cornell Law: A Digital Repository. For more information, please contact [email protected]. Michael P. Scharf * Musical Chairs: The Dissolution of States and Membership in the United Nations Introduction .................................................... 30 1. Background .............................................. 31 A. The U.N. Charter .................................... 31 B. Historical Precedent .................................. 33 C. Legal Doctrine ....................................... 41 I. When Russia Came Knocking- Succession to the Soviet Seat ..................................................... 43 A. History: The Empire Crumbles ....................... 43 B. Russia Assumes the Soviet Seat ........................ 46 C. Political Backdrop .................................... 47 D.
    [Show full text]
  • Realpolitik: a History Pdf, Epub, Ebook
    REALPOLITIK: A HISTORY PDF, EPUB, EBOOK John Bew | 408 pages | 21 Jan 2016 | Oxford University Press | 9780199331932 | English | Oxford, United Kingdom Realpolitik: A History PDF Book Read an excerpt of this book! Retrieved 13 August Williams September Community Reviews. Remove the threat, punish the enemy militarily and economically, but do not leave a vacuum of power. According to Kenneth Paul Tan of the Lee Kuan Yew School of Public Policy, "Chua Beng Huat [27] argued that the rhetoric of pragmatism in Singapore is ideological and hegemonic in nature, adopted and disseminated in the public sphere by the People's Action Party PAP government and institutionalized throughout the state in all its administrative, planning and policy-making functions. Realpolitik is a word that most of us have at least heard of, but did not really understand what it is, muchless what it isn't. London: Yale University Press. Foundations of Realpolitik emphasizes the importance of ideas and idealism as forces of change and transformation 5. However, it should not do so in a way that destabilized those authoritarian regimes that were friendly to the United States, particularly if this meant that they fell into the hands of communists. Jul 05, Michael Marstellar rated it it was amazing. Kissinger said many times he was not Realpolitik, but as a realist with a German accent how could he be anything else. Whereas Realpolitik refers to political practice, the concept of political realism in international relations refers to a theoretical framework aimed at offering explanations for events in the international relations domain. Rose Deller March 16th, Associated with great thinkers from Machiavelli to Kissinger, it is deeply rooted in the history of diplomacy yet also remains strikingly relevant to debates on contemporary foreign policy in the Obama administration today.
    [Show full text]
  • 8-11 July 2021 Venice - Italy
    3RD G20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS MEETING AND SIDE EVENTS 8-11 July 2021 Venice - Italy 1 CONTENTS 1 ABOUT THE G20 Pag. 3 2 ITALIAN G20 PRESIDENCY Pag. 4 3 2021 G20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS MEETINGS Pag. 4 4 3RD G20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS MEETING Pag. 6 Agenda Participants 5 MEDIA Pag. 13 Accreditation Media opportunities Media centre - Map - Operating hours - Facilities and services - Media liaison officers - Information technology - Interview rooms - Host broadcaster and photographer - Venue access Host city: Venice Reach and move in Venice - Airport - Trains - Public transports - Taxi Accomodation Climate & time zone Accessibility, special requirements and emergency phone numbers 6 COVID-19 PROCEDURE Pag. 26 7 CONTACTS Pag. 26 2 1 ABOUT THE G20 Population Economy Trade 60% of the world population 80 of global GDP 75% of global exports The G20 is the international forum How the G20 works that brings together the world’s major The G20 does not have a permanent economies. Its members account for more secretariat: its agenda and activities are than 80% of world GDP, 75% of global trade established by the rotating Presidencies, in and 60% of the population of the planet. cooperation with the membership. The forum has met every year since 1999 A “Troika”, represented by the country that and includes, since 2008, a yearly Summit, holds the Presidency, its predecessor and with the participation of the respective its successor, works to ensure continuity Heads of State and Government. within the G20. The Troika countries are currently Saudi Arabia, Italy and Indonesia.
    [Show full text]
  • Mr. Tietmeyer Reviews the Central Bank Council of the Deutsche Bundesbank on Its 50Th Anniversary Address Delivered by the President of the Deutsche Bundesbank, Prof
    Mr. Tietmeyer reviews the Central Bank Council of the Deutsche Bundesbank on its 50th anniversary Address delivered by the President of the Deutsche Bundesbank, Prof. Hans Tietmeyer, during the ceremony marking the 50th anniversary of the first meeting of the Central Bank Council at the Land Central Bank of Hesse in Frankfurt/Main on 5/3/98. On March 8, 1948, eleven men gathered next door in the building of the then Land Central Bank of Hesse. The Central Bank Council - which at that time was still “provisional” - of the Bank deutscher Länder, which had been established on March 1, was meeting for the first time. An American officer of the Allied Banking Commission (appropriately named Mr. Freeman) convened the first meeting at 10.30 a.m. There will be quite a few fiftieth anniversaries in the coming weeks and months occasioned by the flood of major events relating to Germany which took place in 1948 and 1949. Many of these events were certainly more dramatic and spectacular than the first meeting of the Central Bank Council. Yet, if we remember this meeting now, it is because a crucial decision for the future began to take shape at that time. If that which was begun on March 8, 1948 had not met with success, the history of the D-Mark (and perhaps also the history of our country) would have taken a different course. It is true that the preparations for the introduction of the D-Mark were carried out elsewhere and by others, particularly by the Allies themselves. Yet, with monetary reform on June 20, when the first D-Mark banknotes came into circulation, the fate of the new currency began to be linked to the viability and the stability orientation of the German Central Bank Council.
    [Show full text]
  • Axel a Weber: Global Imbalances – Causes and Challenges
    Axel A Weber: Global imbalances – causes and challenges Introductory remarks by Professor Axel A Weber, President of the Deutsche Bundesbank, at the international conference “20 Years of Technical Central Bank Cooperation”, Eltville, Hesse, 28 October 2010. * * * 1. Introduction Ladies and gentlemen I am highly delighted to welcome you to this notable conference at the Bundesbank Training Centre in Eltville. Central bankers and other officials from 42 countries have gathered here today to discuss various experiences and common challenges. I would like to thank Mr Thomas Gierenstein and Mr Jürgen Sterlepper as well as their team for organising this conference. We are holding it to celebrate 20 years of technical central bank cooperation within the Bundesbank. While the Bundesbank has always been available to provide foreign central banks with technical assistance, the momentous events of the early 1990s prompted the Bank to institutionalise this kind of work. It was, in particular, Hans Tietmeyer, my pre-predecesssor and Vice-President at the time who was quick to grasp the far-reaching importance of those historic events for central banking: the fall of the Iron Curtain, the collapse of the communist regimes in central and eastern Europe, the subsequent transformation in those countries from a planned economy to a market economy as well as the break-up of the Soviet Union and the resulting formation of new, independent states. Many of those states had to start from scratch in establishing their own national central banks. All things considered, there was a major and vital need for central bank cooperation. Hence, in the first few years of its existence, the activities of the Bundesbank’s “Technical Central Bank Cooperation” were very much focused on the process of restructuring the banking system in those countries.
    [Show full text]
  • Europe and the Euro
    This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: Europe and the Euro Volume Author/Editor: Alberto Alesina and Francesco Giavazzi, editors Volume Publisher: The University of Chicago Press Volume ISBN: 0-226-01283-2 Volume URL: http://www.nber.org/books/ales08-1 Conference Dates: October 17-18, 2008 Publication Date: February 2010 Chapter Title: How Central Bankers See It: The First Decade of European Central Bank Policy and Beyond Chapter Author: Stephen G. Cecchetti, Kermit L. Schoenholtz Chapter URL: http://www.nber.org/chapters/c11670 Chapter pages in book: (327- 374) 9 How Central Bankers See It The First Decade of European Central Bank Policy and Beyond Stephen G. Cecchetti and Kermit L. Schoenholtz 9.1 Introduction Otmar Issing: “There was a clear view from a number of outside observers that we would fail and that it would be a disaster in any respect.” As late as 1997, less than a year before the European Central Bank (ECB) was scheduled to come into existence, there was widespread skepticism about whether the European Monetary Union (EMU) would begin on schedule as a broad union and, in some quarters, whether it would happen at all. Yet here we are a full decade after the advent of EMU and today there are fi fteen countries where the euro is legal tender. The twenty- one members of the Governing Council of the ECB make monetary policy for a region of 320 million people with a gross domestic product (GDP) of roughly €9 trillion.
    [Show full text]
  • Central Banking Institutions and Traditions in West Germany After the War by Jörg Bibow the Levy Economics Institute May 2004
    Working Paper No. 406 Investigating the Intellectual Origins of Euroland’s Macroeconomic Policy Regime: Central Banking Institutions and Traditions in West Germany After the War by Jörg Bibow The Levy Economics Institute May 2004 “The reasons for the success of German monetary policy in defending price stability are in part historical. The experience gained twice with hyperinflation in the first half of this century has helped to develop a special sensitivity to inflation and has caused the wider public to believe in the critical importance of monetary stability in Germany. For this reason, the strong position of the Bundesbank is widely accepted by the general public - questioning its independence even seems to be a national taboo. This social consensus has yielded strong support for the policy of the Bundesbank. … No government has ever seriously considered modifying the Bundesbank Act as a means to deal with cases of conflict, although it could have done so with a simple majority of the Parliament. Historical experience in Germany testifies to the success of the concept of an independent central bank. Inflation rates have remained far below the average rates of most other industrial countries. Stable prices have contributed to a fairly stable social climate, which is felt to have favored growth of the German economy; this has strengthened its role in the world economy. The German currency, the Deutsche Mark, has become a major reserve currency in the world and the “anchor currency” in the European Monetary System, and it enjoys a high standing. ... In the light of the success of the Bundesbank, it is only natural that the German public will expect that any successor, which could take its place at the European level, should be at least as well equipped as the Bundesbank to defend price stability” (Hans Tietmeyer 1991: 182-3; Bundesbank president 1993-9).
    [Show full text]
  • Summary Proceedings
    Summary Proceedings of the Forty-Fifth Annual Meeting of the Board of Governors September 25-27, 1990 International Monetary Fund Washington, D.C. ©International Monetary Fund. Not for Redistribution International Standard Serial Number ISSN 0074-7025 ©International Monetary Fund. Not for Redistribution CONTENTS Page Introductory Note ix Address by the President of the United States, George Bush 1 Opening Address by the Chairman of the Boards of Governors, the Governor of the Fund and the Bank for Kenya, George Saitoti . 5 Presentation of the Forty-Fifth Annual Report by the Chairman of the Executive Board and Managing Director of the International Monetary Fund, M. Camdessus 12 Discussion of Fund Policy at Second Joint Session Report by the Chairman of the Interim Committee of the Board of Governors on the International Monetary System, Michael H. Wilson 22 Statements by the Governors for Italy—Guido Carli* 25 Italy—Guido Carli 29 Indonesia—J. B. Sumarlin 33 France—Pierre Bérégovoy 38 Japan—Ryutaro Hashimoto 40 Côte d'lvoire—Kablan D. Duncan* 46 China—WANG Bingqian 52 Philippines—Jesus P. Estanislao 56 Kuwait—Sheikh Ali Al-Khalifa Al-Sabah 58 Austria—Ferdinand Lacina 61 Israel—Michael Bruno 63 Greece—Efthimios Christodoulou 67 Discussion of Fund Policy at Third Joint Session Report by the Chairman of the Joint Ministerial Committee of the Boards of Governors on the Transfer of Real Resources to Developing Countries (Development Committee) B.T.G. Chidzero 73 Statements by the Governors for Islamic Republic of Iran—Mohsen Nourbakhsh 76 Federal Republic of Germany—Karl Otto Poehl 79 United Kingdom—John Major 83 India—Madhu Dandavate 87 *Speaking on behalf of a group of countries.
    [Show full text]