From G-7 to G-8 to G-20

Tags: G-8, G20, South Africa

Old turns to New

Photo:Reuters

South Africa in the House
It seems like a game changer at the turn of a new global financial order and every economist is talking about it. Apparently, what used to be the G-8 is being reconstituted into the G-20. The privileged groups of wealthy nations will now, almost permanently, include emerging economies from South America, Africa and Asia. The only African nation represented is South Africa.

Reuters characterized this shift in strategy as follows:
“The Pittsburgh gathering was the third summit in a year for the G20, which said it would now be the “premier forum” for economic cooperation, supplanting the Western-dominated G7 and G8 that were the primary international forums for decades.”

Possible benefits and outcomes of this transformation:
The analysts are talking things like global imbalance, about diversity, inclusivity in problem solving, emerging markets, broader financial regulation, cross border issues, empowerment