G20 Current Affairs - 2020

G20 countries pledge 21 billion USD to fight COVID-19

On June 6, 2020, the G20 countries pledged over 21 billion USD to fight against COVID-19. The countries have so far injected 5 trillion USD in March 2020 to help fight global economic crisis.

The 21 billion USD commitment was made only by the invited members.

Highlights

The G20 countries had already injected 5 trillion USD into the global economy in order to help their members take steps in targeted fiscal policies, guarantee schemes, economic measures and counteract economic, social and financial impacts of the pandemic.

The G20 members had also asked the International Monetary Fund and World Bank to support the countries that are in need of instruments required in the fight of COVID-19.

Funds

The 21 billion USD funds allocated is to be used in research and development, vaccines, therapeutics and diagnostics. In April, 2020, the G20 called on the NGOs, philanthropies and private sectors and estimated that 8 billion USD is required to close the financial gap in the combat of COVID-19.

G20

It is to be noted that when the G20 leaders met in March 2020, they framed a global response to fight COVID-19 and adopt measures to safeguard global economy. They also planned to minimise trade disruption by enhancing global cooperation.

G7 summit postponed; To be expanded as G10 or G11

The US President Donald Trump recently announced that the USA is postponing the G7 summit to September 2020. Also, President Trump intends to expand the G7 group to G10 or G11.

On June 2, 2020, US  President Trump invited Indian PM Modi to the G7 summit through telephonic conversation. The Leaders discussed India-China recent Stand Off at the Line of Actual control

Highlights

The G-7 is a group of seven countries namely France, Canada, Germany, Japan, US and UK. The grouping dies not have a fixed headquarters or a formal constitution. The decision that are taken in the summit are non-binding.

President Trump intends to expand the G7 group by including three other nations namely Australia, Russia, India and South Korea.

About G7

G7 is an inter governmental organization that was formed in 1975. It was formed by the top economies of the world as an informal forum to discuss world issues. Canada joined G7 in 1976 and EU (European Union) began attending G7 meets in 1977.

Russia joined G7 in 1997. Initially G7 was called G8. In 2014, Russia was expelled as it annexed Crimea region of Ukraine to its territory.

G7 VS G20

G20 is a larger group and includes all the G7 members. India is a member of G20. G20 was formed in 1999 as a response to bring more countries to address global economic concerns. G20 makes up 80% of the global economy.