47th G7 Summit | IAS Target IAS Target

47th G7

Context: The Seven Nations Group (G7) has adopted the G7 principles for digital commerce. This guides the G7's approach to digital commerce.

What is the G7?

  • As per the International Monetary Fund (IMF), the G7 or Group of Seven is a group of the seven most developed countries.
  • The seven countries are Canada, the United States, the United Kingdom, France, Germany, Japan and Italy.

47th G7 Summit 2021

  • It was held in the UK in June 2021. The Prime Minister of India and South Korea, South Africa and Australia were invited to the 47th Summit.
  • The goal of the 47th G7 Summit was to unite significant democracies to support the world recover better from the coronavirus and create a more environmentally friendly and prosperous future.

The purpose:

  • Promote future prosperity through the advocacy of free and fair trade.
  • Fight climate change and protect the biodiversity of the planet.
  • G7 countries are also under international pressure to fund climate change and provide surplus Covid19 vaccines to economically vulnerable countries.
  • The debate on how to raise funds for climate funding was another critical issue addressed at the 47th G7 Summit.
  • To promote vaccine production in countries like India, India attaches great importance to maintaining an open supply chain to procure vaccine ingredients.
  • Prime Minister also sought support from G7 countries for the TRIPS abolition proposal submitted by India and South Africa to the WTO. The exemption is said to increase vaccine production in India.

Overview of the G7

  • The Group of Seven is an informal block of developed/developed countries that meets annually to discuss global economic policy, international security and energy policy.
  • Critics say that the decisions and discussions at the annual Summit have not passed and that significant emerging economies have been excluded.

Configuration of G7

  • The G7 is composed of the 7 wealthiest developed countries. According to various reports, the G7 (excluding the European Union) accounts for more than 62% of the world's net worth.
  • The G7, including the EU, accounts for more than 70% of the world's net worth.

G7 Summit Participation:

  • The Summit Meeting is held annually and is alternated by members of the group.
  • Leaders from critical international organizations such as the European Union, the IMF, the World Bank and the United Nations have also been invited.

Why is China not a member of the G7?

  • According to their data, the People's Republic of China is the second-largest, with 16.4% of the world's net worth.
  • Still, the IMF and other major global institutions do not consider China a progressive country and have a relatively low net worth.

Challenges for G7 members

  • There are many disagreements about the Group of Seven.
  • For example, the United States is clashing with other member states over import taxes and measures against climate change.
  • We also face the challenges of fast-growing emerging economies such as India and Brazil, which are not members of the G7.
  • However, in 1999 the G20 was created to involve more countries to address the problems of the world economy.
  • G7 organizations have also been criticized for not reflecting the current state of politics and economy globally.
  • All Seven are currently the countries with the highest GDP and the highest national wealth (US, Japan, Germany, UK, France, Italy, Canada). The G7 countries with the highest net worth per capita (US, France, Japan, UK, Italy, Canada, Germany) all seven are export leaders.
  • The five members of the G7 have proven their largest gold reserves (US, Germany, Italy, France and Japan).