The group’s recent summit in Cornwall should be its last. Political leaders need to stop devoting their energy to an exercise that is unrepresentative of today’s global economy and results in a near-complete disconnect between stated aims and the means adopted to achieve them.
Why should those discussions occur within the G7, which has been superseded by the G20? When the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) began their annual summit meetings in the 1970s, they still dominated the world economy. In 1980, they constituted 51% of world GDP (measured at international prices), whereas the developing countries of Asia accounted for just 8.8%. In 2021, the G7 countries produce a mere 31% of world GDP, while the same Asian countries produce 32.9%.
The G20, by including China, India, Indonesia, and other large developing countries, represents around 81% of world output, and balances the interests of its high-income and developing economies.
This is an extract from an article republished from Project Syndicate 16 June 2021. Click here to read the original article in its entirety.