The story of G7:
The story of G7 started when Saudi taught America a lesson. It is a matter of 1973. US President Richard Nixon gives 18 thousand crore rupees to Israel to fight against Arab countries. Angered by this, the OPEC countries, under the leadership of King Faisal of Saudi Arabia, drastically cut oil production. The purpose of reducing oil production is to teach a lesson to Western countries supporting Israel against Palestine.
The result was that by 1974, there was a shortage of oil in the world. Due to this, oil prices increase up to 300%. Its biggest impact is on America and its rich partner countries. There comes an economic crisis. Inflation starts touching the sky.
Next year in 1975, troubled by the rising oil prices, 6 rich countries of the world come together. They form an organization to serve their interests. This is called the ‘Group of Six’. These included America, Germany, Japan, Italy, Britain and France.
Now read here how there have been changes in the ranking of countries with big economies in the world in the last 3 decades. 5 countries in the top 10 are not members of the G7.
This is how the ranking of countries with big economies in the world changed since 1990-
1990- America →Japan → Germany →Italy →China →France →Brazil. 2000-America → China → Japan →Germany →India → France →Russia. 2010-America → China → India → Japan → Germany → Russia → Brazil.
Countries are out of top economy
It started during the Cold War when on one side the Soviet Union and its supporting countries formed a group called Warsaw. On the other hand, there were industrialized and developed countries of the West.
In 1975, anti- leftist Western countries France, Italy, West Germany (at that time Germany was divided into two pieces), America, Britain and Japan come on one stage. Their purpose is to sit together and discuss issues of the economy related to their interests. Since then this informal organization
In 1975, anti- leftist Western countries France, Italy, West Germany (at that time Germany was divided into two pieces), America, Britain and Japan come on one stage. Their purpose is to sit together and discuss issues of the economy related to their interests. Since then this informal organization begins. Initially these were 6 countries, in 1976 it became G7 with the inclusion of Canada.
In 1998, the second phase of the G7 organization begins. When Russia is included in it. At this time the President of Russia was Boris Yeltsin. At that time Russia’s policy was also in support of America and Western countries. After the inclusion of Russia in G7, its name became G8. It was expelled from the organization in 2014 after Russia’s incursion into Crimea.
The function of G7
In the first meeting of the G7 organization, a plan was made to deal with the oil crisis initiated by Saudi. Also at that time the exchange rate crisis started. This means that America had de- linked the value of the dollar from gold. America did this to increase the dominance of dollar instead of gold in the world. However, this started economic troubles for other countries.
Meanwhile, Western countries felt that they needed to come together to make policies at the financial level. So that they can solve their business and trade issues among themselves.
Since then the meeting of this organization is held every year continuously. These countries discuss important issues related to world politics and economy. For example in the G7 meeting held last year, seven countries had announced to ban Russia due to the Ukraine war.
G7 countries to dominate the world
When the G7 started in 1975, at that time these countries used to control 60% of the world’s GDP. Their per capita income was also high. This organization promotes the interests of the richest countries in the world. On the other hand, the countries of Global South that is poor and developing countries.
The share of G7 countries in terms of GDP in the world-
Japan → 4.7%
Germany → 4.1%
UK → 3.3%
France → 2.8%
Canada → 2.1%
Italy → 2.0%
Solidarity is there among the G7 countries
G7 countries have a lot of solidarity for their own benefit. However, there are many differences between them as well. America’s policy is to always keep these countries under the purview of NATO. He does not want to allow any other military organization to be formed. He feels that if Germany and France form another organization then NATO will be in danger.
In 2018, US President Donald Trump refused to sign the G7 joint statement paper. He accused Canada of imposing high tariffs on his workers and companies. During that time, concern had increased in the rest of the countries of the organization due to this attitude of America. However, Biden has allayed those concerns.
On the other hand, when it comes to opposing China, there is no unity in these countries. Last month, French President Emmanuel Macron returned from China and said that he supports the One China policy. Whereas America supports Taiwan on the contrary. Apart from France, Germany and Italy also have good relations with China.
Why it is criticized ?
There are some reasons for the displeasure of the rest of the world with the G7.
- G7 promotes the interest of rich countries. He does not favor other countries.
- These organizations sometimes help poor countries, but they do not support other countries in the matter of big issues like technology sharing.
- These countries refused to give the technology of Covid vaccine to poor countries even during the pandemic.
- They do not consult other countries in taking major decisions. For example, sanctions on Russia after the war in Ukraine Consent of other countries was not taken for installation.
- Whenever there is talk of reform in big international organizations, the lobby of these 7 countries becomes strong.
- These countries no longer want timely reforms in international law and rules. In WTO, they are engaged in serving their own interests.