The Group of Twenty (G20) is a premier intergovernmental forum that brings together the

world's major developed and developing economies to discuss and cooperate on global
economic and financial issues. Since its inception, the G20's agenda has expanded to include
pressing global challenges such as trade, climate change, sustainable development, health,
agriculture, energy, environment, and anti-corruption.

Formation and Evolution

The G20 was established in 1999 in response to the Asian financial crisis of 1997-1998.
Recognizing the need for broader international cooperation beyond the G7, the G20 was
conceived as an informal platform for the Finance Ministers and Central Bank Governors of
systemically important industrialized and developing economies. The inaugural meeting took
place in Berlin in December 1999.
Initially, the forum primarily focused on broad macroeconomic issues and financial stability.
However, in the wake of the global financial crisis of 2007-2008, the G20 was elevated to the
level of Heads of State/Government. The first G20 Leaders' Summit was held in Washington
D.C. in November 2008. This elevation underscored the G20's critical role in responding to
global economic crises and shaping the international financial architecture. In 2009, it was
officially designated as the "premier forum for international economic cooperation."
The G20 Summit has been held annually since 2011, with the presidency rotating among its
members. Each year, the country holding the presidency sets the agenda, hosts the summit,
and steers the G20's work program in consultation with other members. The presidency is
supported by a "Troika," which includes the previous, current, and incoming presidencies,
ensuring continuity and smooth transitions.
A significant development in the G20's history was the inclusion of the African Union (AU) as a
permanent member in 2023 during India's presidency. This expanded the G20's representation
and further amplified the voices of developing nations within the forum.

Membership
The G20 comprises 19 individual countries and two regional bodies:
Member Countries:
1.​ Argentina
2.​ Australia
3.​ Brazil
4.​ Canada
5.​ China
6.​ France
7.​ Germany
8.​ India
9.​ Indonesia
10.​Italy
11.​Japan
12.​Republic of Korea
13.​Mexico
14.​Russia
15.​Saudi Arabia
 16.​South Africa
17.​Türkiye
18.​United Kingdom
19.​United States
Regional Bodies:
1.​ European Union (EU)
2.​ African Union (AU)
Collectively, the G20 members represent approximately 85% of the global Gross Domestic
Product (GDP), over 75% of global trade, and about two-thirds of the world's population.
This significant economic and demographic weight gives the G20 considerable influence in
shaping global policies and initiatives.
In addition to the permanent members, the G20 presidency annually invites guest countries and
international organizations to participate in its meetings and summits, ensuring a broader range
of perspectives are considered. Spain is a permanent guest invitee.

Functions and Working Mechanisms

The G20 operates through a multi-layered structure involving various meetings, working groups,
and engagements throughout the year, culminating in the annual Leaders' Summit. The core
work of the G20 is primarily carried out through two parallel tracks:
1.​ The Finance Track: This track is led by the Finance Ministers and Central Bank
Governors of the member countries. It focuses on macroeconomic issues, financial
regulation, and other economic policy matters. Working groups under the Finance Track
address specific areas such as:
○​ Global macroeconomic policies
○​ International financial architecture
○​ Financial sector reforms
○​ Sovereign debt management
○​ Climate finance
○​ Taxation
2.​ The Sherpa Track: The Sherpa Track is led by the "Sherpas," who are personal envoys
of the leaders of the member countries. They oversee the broader agenda of the G20,
including political, socio-economic, and developmental issues. The Sherpa Track
coordinates the work of various working groups that focus on areas such as:
○​ Agriculture
○​ Anti-corruption
○​ Culture
○​ Digital Economy
○​ Disaster Risk Reduction
○​ Education
○​ Employment
○​ Environment and Climate Sustainability
○​ Health
○​ Tourism
○​ Trade and Investment
○​ Women and Child Development
Engagement Groups: Beyond the two main tracks, the G20 also engages with civil society, the
private sector, and other stakeholders through various Engagement Groups. These groups
provide valuable perspectives and contribute to the G20's deliberations. Some prominent
Engagement Groups include:
●​ Business 20 (B20): Represents the business community.
●​ Civil 20 (C20): Represents civil society organizations.
●​ Labour 20 (L20): Represents labor unions.
●​ Think 20 (T20): Represents think tanks and research institutions.
●​ Youth 20 (Y20): Represents young leaders.
●​ Women 20 (W20): Focuses on gender equality and women's empowerment.
●​ Parliament 20 (P20): Engages parliamentarians from G20 countries.
●​ Science 20 (S20): Engages the scientific community.
●​ Supreme Audit Institutions 20 (SAI20): Engages supreme audit institutions.
●​ Urban 20 (U20): Focuses on urban issues.
The G20 operates on the principle of consensus. Decisions and declarations are typically the
result of negotiations and agreement among all members. While G20 commitments are not
legally binding, they carry significant political weight and influence national policies and
international cooperation.

Importance and Impact

The G20 plays a crucial role in shaping the global economic architecture and addressing
pressing international challenges due to several factors:
●​ Economic Significance: Representing the vast majority of global GDP and trade, the
G20's decisions and policy coordination have a substantial impact on the world economy.
●​ Broad Agenda: The G20's agenda has evolved to encompass a wide range of
interconnected issues, recognizing that economic stability and growth are linked to social,
environmental, and other factors.
●​ Inclusive Representation: Unlike smaller forums like the G7, the G20 includes major
developing economies, providing a more representative platform for global dialogue and
decision-making.
●​ Crisis Response: The G20 has proven to be a vital forum for coordinating responses to
global economic and financial crises, as demonstrated during the 2008-2009 crisis and
the COVID-19 pandemic.
●​ Policy Influence: G20 communiqués and declarations often set the direction for
international policy discussions and influence the agendas of other international
organizations.
●​ Multilateralism: The G20 promotes multilateralism and international cooperation as
essential for tackling global challenges that cannot be addressed by individual nations
alone.
●​ Platform for Dialogue: The G20 provides a unique platform for leaders to engage in
direct dialogue, build relationships, and foster mutual understanding on critical global
issues.

Key Focus Areas

Over the years, the G20 has focused on a range of critical issues, including:
●​ Global Economic Stability and Recovery: Coordinating macroeconomic policies to
 promote sustainable and balanced growth, addressing financial vulnerabilities, and
managing economic crises.
●​ Financial Regulation: Strengthening the regulation and supervision of the financial
sector to prevent future crises and enhance financial stability.
●​ Sustainable Development: Promoting inclusive and sustainable economic growth,
addressing poverty and inequality, and working towards the achievement of the
Sustainable Development Goals (SDGs).
●​ Climate Change: Addressing climate change mitigation and adaptation, promoting green
finance, and supporting the implementation of the Paris Agreement.
●​ Global Health: Strengthening global health security, pandemic preparedness and
response, and improving access to healthcare.
●​ Trade and Investment: Promoting open, fair, and rules-based international trade and
investment.
●​ Digital Economy: Fostering digital transformation, addressing the challenges and
opportunities of the digital economy, and promoting digital inclusion.
●​ Anti-Corruption: Combating corruption and promoting transparency and accountability.
●​ Energy: Ensuring energy security, promoting renewable energy sources, and fostering
sustainable energy transitions.
In conclusion, the G20 is a vital forum for international economic cooperation, bringing together
the world's leading economies to address global challenges. Its evolution from a platform for
finance ministers to a summit of heads of state underscores its growing importance in global
governance. Through its various tracks, working groups, and engagement groups, the G20
facilitates dialogue, coordination, and policy influence on a wide range of critical issues, making
it an indispensable platform for shaping the future of the global economy and addressing shared
challenges.