Who Is in the G8?:
What Is the G8 Summit?:
The G8 Summit occurs once a year, and of course involves the members of the G8. Usually, other important leaders are invited, including the leaders of China, India, Mexico, and Brazil. The leaders of important international organizations are also invited, including the IMF, World Bank and UN.
What Role Has the G-8 Played in the World's Economy?:
In 2007, German Chancellor and then-EU President Angela Merkel was Chair of the G-8 Summit. She brokered a historic climate change agreement that included getting the U.S. to agree that its climate change policy be under the auspices of the UN. Until then, the U.S. resisted subjugating its actions to UN policy. Merkel got the U.S. to agree to “seriously consider” cutting greenhouse gas emission in half by 2050.
Chancellor Merkel’s leadership on this issue was further indication that the EU was becoming more of a global leader than the U.S. This represents a significant change from the post-WWII / Marshall plan era.
Unfortunately, the G-8 missed a critical opportunity to avert the 2008 global economic recession. They refused to agree to a code of conduct for hedge funds, which are located primarily in the U.S. and the UK. They recognized it was needed, but didn't have the political will to follow-through.
Instead, Chancellor Merkel agreed to meet with these hedge funds to convince them of the wisdom in establishing a self-regulating code of conduct. As we now know, her efforts were not enough to reduce the global risks that unregulated hedge funds created.
Is the G-8 Outdated?:
Many feel that the G-8 does not accurately represent the true leaders in global economic power. In 2008, then EU President and French President Nicholos Sarkozy met with EU Commissioner Manuel Barroso and called for the inclusion of China, India and Brazil in G-8 membership. So far, this request has been ignored. For this reason, it is possible that the G-20 will become a more important international body than the G-8.
