G-7
GS PAPER II: Important International institutions, agencies and fora - their structure, mandate.
Context: U.S. Deputy Treasury Secretary anticipates strong support from the G7 industrial democracies for the Biden Administration’s proposed 15%-plus global minimum corporate tax, which in turn should help solidify support in the U.S. Congress for domestic corporate tax legislation.
G-7:
- Group of seven (G-7) is a collective of seven world's most industrialized and developed economies. These seven countries are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
- India is not a member of G-7.
- European Union is also represented at the G-7 summit. It holds all the privileges and obligations of membership but without the right to host or chair a summit.
- This forum was originally formed to discuss economic and political concerns raised by the 1973 oil crisis - when members of Organization of Petroleum Export Countries (OPEC), increased the price of oil and cut global oil supplies.
- Since 1975, political leaders of this forum come together annually to discuss important global economic, political, social and security issues.
- Together, the G-7 countries represent 40% of global GDP and 10% of the world’s population.
- Russia belonged to this forum from 1998 to 2014, then it was called as the Group of Eight (G-8), but Russia was expelled following its annexation of Crimea region of Ukraine.
- The G-7 members are
- Leading export countries
- Largest gold reserves holder
- Largest nuclear energy producers
- Top contributors to the UN budget
Importance of G-7 for India:
- India has found it difficult to negotiate with the European Union, G-7 provides a platform to negotiate and cooperate with EU.
- India used this platform to raise the issue of climate change, renewable energy and digitization, in this way India is becoming voice of Asian countries.
- G-7 covers a large number of international issues, including energy security, trade, terrorism, nuclear proliferation, global health issues, gender equality, poverty etc. Action and policies undertaken by G-7 have direct implications on India’s policies.
1.png)
