Friends, before understanding G20, we need to understand G7.

Because G7 was formed

before G20.

It all began in the early 1970s. The economic condition of the world was worsening.
There were many reasons behind it.

But the biggest reason was the oil crisis of 1973. This crisis started when the Arab
countries imposed an oil embargo.

They stopped selling oil to those countries that were supporting Israel. Mostly, the
Western countries like America and Europe.

These Western countries relied heavily on oil coming from the Middle East and because
of this, these countries witnessed a heavy economic recession. cut off all oil shipments
to the United States."

Their governments decided that

if they wanted to improve the economic situation,

they needed to take action together. To bring the economy back on track,

they needed to sit together and make economic policies.

Because of this, there were some informal meetings

in the White House, USA between the finance ministers of these countries.

It was in early 1973, that the finance ministers of the USA, France, the UK and West
Germany met.

Two years later, they included Italy and Japan. And in 1975, the first G6 meeting took
place.

This was the first official meeting. After this, in 1976, Canada joined the group.

And the G6 group became the G7 group. These seven countries were among the most
developed countries of their time. Their economies were among the top economies in
the world.

But there were many other commonalities among them. All these countries were liberal
democracies and promoted values like human rights and individual freedom. Politically,
during the Cold War, these countries were part of the Western Bloc.

So you can say that they were ideologically similar too.

And economically, of course.

They were struggling with problems like the oil crisis and recession.

So, their main aim was to sit together and make economic strategies.

In 1998, Russia was also included in this group.

G7 became G8. But in 2014, when Russia invaded Crimea, Russia was expelled from
this group.

Now, if we come to G20, it was also started due to the economic crisis.

The Asian financial crisis of 1997. There was a huge financial crisis in South Korea,
Indonesia, and Thailand.

"The global markets worried that Asian countries might have similar hidden flaws." But
this crisis was so big that it affected Hong Kong, Laos, Malaysia, the Philippines and to
some extent China, Japan, Singapore, Taiwan and Vietnam.

The value of the currency started to fall rapidly in these countries,

unemployment started to rise

But other members of G7 also realized that the world is becoming more interconnected
with time.

Globalization was so prominent that if there were problems in one country, its effects
were felt by other countries too. And so, if we want to bring economic stability to the
world

and stop heavy recessions, we will have to sit with the emerging economies of the
world to make action plans. So, on 26th September, 1999, during the meeting of the
finance ministers of G7, the G20 group was established.

and now let's get back to G20. In this group, these developed countries

included the developing countries as well.

Then they saw which were the biggest countries in the world the ones that were
handling the biggest economies. On this basis, China, India, Brazil, South Africa, and
Russia were included.
since the real purpose behind making the G20 was to deal with the financial crisis. The
G20 group meetings were attended by only the finance ministers and the central bank
governors of these countries.

This continued for many years until the global financial crisis of 2008.

Then these countries realized that they should have more serious meetings. Not only
the finance ministers but the presidents and prime ministers also needed to meet. The
cooperation between all the countries should be at the next level if

future financial crises were to be prevented. That's why the first official summit of G20
leaders was held in 2008.

This first summit was held in America where these countries collectively decided to
reduce the trade barriers between them.

In total, the G20 countries collectively contribute 85% of the global economic output.
More than 75% of the global trade is in these countries.

And more than 2/3rds of the world's population live in these countries.

Since 2008, the G20 Summit has been held every year. And it happens in a different
country every year.

it comprises 85 percent of the global GDP 75 percent of the global trade and two-thirds
of the world's population so this is very in this term and it is trending the global
architecture and governance on economic and financial

slide is about what are the objective of the G20 so we can see the objective so the first
objective is policy coordination between its members and
they will focus on the global economic stability and sustainable growth which

Financial regulation and to provide and to reduce all the country the risk from the
future Financial issues and they will also focus on to
creation of New International Financial architecture it means they will maybe focus on a
common bank