Group of Twenty (G20)

The Group of Twenty, or G20, is a club of the world's biggest economies. Its leaders meet once a year to discuss the world economy, money, trade, climate, health and development. Today it has 21 members: 19 countries, the European Union (EU) and the African Union (AU). Together, these members produce about 85% of the world's GDP (total income), about 75% of world trade and are home to about two-thirds of the world's people.

Why does it exist?

Some problems are too big for any one country. When a financial crisis starts in one place, it can spread to banks, stock markets and jobs across the world in weeks. Earlier, only the G7, a small group of rich Western countries and Japan, discussed such problems. But big emerging economies like India, China and Brazil were becoming too important to leave out. The G20 was created so that rich and developing economies could sit at one table and work out common answers.

Where did it come from?

The G20 was born out of the Asian Financial Crisis of 1997-98, when currencies and banks in countries like Thailand, Indonesia and South Korea collapsed. Here is how it grew:

• 1999: The G7 finance ministers agreed to create the G20 as a meeting of finance ministers and central bank governors. The first meeting was held in Berlin, Germany, on 15-16 December 1999. Canada's then Finance Minister, Paul Martin, chaired the G20 in its first two years.
• 2008: The Global Financial Crisis began in the United States and spread worldwide. To respond, the first-ever G20 Leaders' Summit was held in Washington DC on 14-15 November 2008. From then on, heads of state and government started meeting.
• 2009: At the Pittsburgh Summit, leaders named the G20 the main forum for international economic cooperation.
• 2023: At the New Delhi Summit under India's presidency, the African Union was made a permanent member on 9 September 2023. This took the membership to 21.

Who are the members?

The 19 countries are:

• Asia and Oceania: India, China, Japan, South Korea, Indonesia, Saudi Arabia, Türkiye, Australia
• Europe: United Kingdom, France, Germany, Italy, Russia
• Americas: United States, Canada, Mexico, Brazil, Argentina
• Africa: South Africa

Plus two regional blocs: the European Union and the African Union.

How does it work?

The G20 is an informal forum. It has no permanent office (secretariat), no founding treaty and no staff of its own. Its decisions are not legally binding; they are political promises. The work runs like this:

1. The presidency: Each year, one member holds the presidency. It hosts the summit, sets the agenda and runs meetings across the year. The presidency rotates among five regional groups of members, so different parts of the world get a turn.
2. The troika: To keep things steady, the current, the previous and the next presidency work together as a team of three, called the troika. It is like a relay race, where the runner handing over and the runner taking over run together for a short stretch.
3. Two tracks: The Finance Track is led by finance ministers and central bank governors and covers the world economy, banking and debt. The Sherpa Track is led by personal representatives of the leaders, called Sherpas, and covers topics like energy, health, agriculture, digital economy and climate.
4. Working groups and engagement groups: Experts meet in working groups on each topic. Engagement groups bring in non-government voices, such as Business 20 (B20, set up in 2010) and Think 20 (T20, started in 2012), plus groups for youth, women, workers and civil society.
5. The summit: At the end of the year, leaders meet and usually release a joint Leaders' Declaration, agreed by consensus (everyone must agree).

India and the G20

India has been a member since 1999. It held the G20 presidency from 1 December 2022 to 30 November 2023, and hosted the 18th Summit in New Delhi on 9-10 September 2023. Important points from India's presidency:

• Theme: "Vasudhaiva Kutumbakam: One Earth, One Family, One Future".
• More than 200 meetings were held in about 60 cities across all 28 states and 8 Union Territories.
• The New Delhi Leaders' Declaration was adopted by consensus on the first day of the summit.
• The African Union joined as a permanent member, giving Africa a stronger voice.
• The Global Biofuels Alliance was launched, and the India-Middle East-Europe Economic Corridor (IMEC) was announced on the sidelines.
• India, Indonesia (2022) and Brazil (2024) formed the troika, the first time all three were developing economies.

Recent and upcoming presidencies

• 2024: Brazil (Rio de Janeiro summit)
• 2025: South Africa (Johannesburg summit, the first G20 summit held in Africa)
• 2026: United States (summit at Miami, 14-15 December 2026). The US took over the presidency on 1 December 2025.
• 2027: United Kingdom
• 2028: South Korea

Commonly confused concepts

• G20 vs G7: The G7 has only seven advanced economies (US, UK, France, Germany, Italy, Japan, Canada) plus the EU as a guest. India is not a G7 member but is often invited as a guest. The G20 includes both advanced and developing economies, and India is a full member.
• G20 vs G77: The G77 is a group of developing countries at the United Nations, set up in 1964. It now has more than 130 members. It is a UN bargaining group, not a club of big economies.
• G20 vs BRICS: BRICS is a smaller group of emerging economies (Brazil, Russia, India, China, South Africa and newer members). Some BRICS members are in the G20, but BRICS is a separate grouping with its own bank, the New Development Bank.
• G20 (finance group) vs "G20" at the WTO: At the WTO, a separate "G20" group of developing countries negotiates on agriculture. It is not the same as the leaders' G20.
• Membership count: Students often write "20 members". The correct answer today is 21 members: 19 countries plus the EU and the AU.

Issues, criticism and the way forward

• No power to enforce: Promises made at summits are not binding. Members often do not follow through, for example on climate finance or debt relief.
• Divisions among big powers: Tensions between the US, China, Russia and Europe make agreement harder. In some years, reaching even a joint declaration has been difficult.
• Who is left out: More than 170 countries are not members. Critics say decisions affecting everyone are taken by a small club. Adding the African Union was a step towards fixing this.
• Changing agenda under each host: Since each presidency sets its own themes, priorities can jump from year to year, which weakens long-term follow-up. The troika system tries to reduce this problem.
• Way forward suggested by experts: Stronger follow-up of past promises, a louder voice for the Global South, reform of global lenders like the IMF and World Bank, and practical work on debt, climate finance and digital public infrastructure (an area India pushed during its presidency).

Concepts to Know

• GDP (Gross Domestic Product): The total value of all goods and services produced in a country in a year. It is the most common measure of the size of an economy.
• Financial crisis: A situation where banks, currencies or stock markets suddenly fall sharply, causing businesses to shut and people to lose jobs and savings.
• Sherpa: A senior official who acts as a leader's personal representative and does the groundwork before a summit. The name comes from the Sherpa guides who help climbers reach the top of Himalayan peaks.
• Consensus: A decision that every member agrees to. If even one member objects, the text is changed or dropped.
• Global South: A common term for developing countries, mostly in Asia, Africa and Latin America.
• Digital public infrastructure: Shared digital systems built for public use, like India's Aadhaar (identity) and UPI (payments).