The Group of Twenty, known commonly as G20, is the most important international forum for economic cooperation. In total, 19 of the world’s leading industrialised and emerging economies plus the European Union comprise the G20, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, and the United States.
This tour de force of countries accounts for 85 percent of the world’s GDP and two-thirds of its population. Together, the nations debate and address issues of the global economy, financial markets, tax and fiscal policy, trade, agriculture, employment, energy, and the environment.
The G20 Annual Summit
When the G20 was founded in 1999, meetings between the countries primarily included finance ministers and central bank governors. While these individuals still meet at various times throughout the year, after the collapse of Lehman Brothers in 2008, leaders from the G20 countries decided it was time for them to come together and discuss measures to improve financial regulation and enable economic reforms.
Now, heads of the G20 nations converge each year for an annual summit. Spain, as a permanent non-member invitee, also attends leader summits. These annual meetings are held in different nations or host countries.
In 2018, Buenos Aires, Argentina will host the 12th-annual G20 Summit, which will be the first ever to be held in South America. Host countries also have the power to invite other countries or key regional organizations to attend the summit at their discretion. For the 2018 Summit, President Mauricio Macri has invited Chile and the Netherlands.
The 2019 Summit will be hosted in Osaka, Japan.
Who Chairs the G20?
The G20 has no permanent president, leader, headquarters, or staff, which allows for more equality among countries. Instead, chairmanship rotates among member nations, which have been divided into regional groupings.
To ensure the consistency and continuity of the group's agenda, the new G20 president collaborates closely with both the past and future chairs, making up the group of three leaders known collectively as the “troika.”
It is the current president’s responsibility to handle any organizational or logistical meeting arrangements. This often includes coordinating “more than 60 ministerial and working group meetings per year.”
South Africa’s Role in the Global Arena
As the premier arena for discussions and decision-making centered on the global economy, South Africa’s place as a G20 nation is incredibly important. In addition to fostering mutually beneficial relationships with other industrialized and emerging economies, South Africa’s inclusion in the G20 gives the African country a voice when it comes to shaping the world’s trade and finance policies.
For example, in 2018, President Cyril Ramaphosa attended the G20 Investment Summit just weeks after announcing a new South Africa stimulus plan. This summit gave the President an opportunity to learn from international businesses and investors who operate in South Africa.
With so many global brands using South Africa as a gateway into the entire continent, these meetings and the resulting insights have been incredibly important. In the end, German business leaders“ affirmed Africa as an attractive destination and partner for trade, investment and the transfer of skills and technology.”
By impacting legislation and policy among the world’s greatest nations, this G20 nation and BRICS emerging economy has further cemented itself as a global economic force with immense potential and a bright future. For more information on this unique economy and how you can invest in South Africa’s surging real estate market, subscribe here.
