G7-G20 Multipolarity - Part.1

The Group of Seven (G7), originally the G6, began in the mid-1970s as a response to major global economic shocks, including the 1973 oil crisis and the collapse of the Bretton Woods system. France hosted the first informal summit in 1975, bringing together leaders from six of the world’s most industrialized nations: France, West Germany, Italy, Japan, the United Kingdom, and the United States. Canada joined in 1976, forming the G7, and Russia was added in 1997, creating the G8. However, following Russia’s annexation of Crimea in 2014, it was suspended, and the group reverted back to the G7. Despite having no permanent secretariat or legal authority, the G7 remains highly influential in shaping global discourse on political and economic matters.

The G20 was formed in 1999 as a response to the 1997 Asian financial crisis, highlighting the limitations of having only advanced economies address global financial issues. This group brought together both developed and emerging economies, including China, India, Brazil, South Africa, and others, to better represent the world’s economic diversity. Initially a forum for finance ministers and central bank governors, it was upgraded to a leaders’ summit in 2008 during the global financial crisis, when global coordination became urgent. The G20 includes 19 countries plus the European Union, making it a broader and more inclusive forum. Its formation marked a significant shift in global governance by giving emerging economies a stronger voice.

Today, the G7 focuses largely on shared values—such as democracy, human rights, and rule-based international order—while tackling global challenges like pandemics, climate change, and regional conflicts. It tends to take a more unified political stance among Western powers. In contrast, the G20 operates as a global economic steering committee, addressing a wide range of issues from trade and taxation to digital economy, green energy, and debt sustainability. It balances the interests of developed and developing countries and plays a crucial role in crisis management and long-term economic planning. Although neither group enforces binding policies, their decisions and declarations significantly shape international priorities and cooperative efforts.