One figure illustrates the importance of the G20 summit in Hamburg: 73%. Is the proportion of the “group of 20 industrialized and developing countries” in the world economy. The value is surprisingly constant: in 1999 when Finance Ministers met for the first time as the G20, she also was 73%.
However, the preponderance of within the G20 has shifted dramatically. Two decades ago, more than 44% of the world’s economic power (measured by purchasing power parity) were in the club of leading industrialized countries — USA, Japan, Germany, France, Italy, great Britain and Canada, known as the G7. In 2016, the figure was only 31%.
The share of Germany decreased from about 5 to 3.33%. The decrease in the value of “seven” has accelerated after the financial and economic crisis in 2008-2009.
At the same time, the group of BRICS countries (Brazil, Russia, India, China and South Africa) is becoming increasingly important: since the creation of the G20, their share in world economy increased from 18.4 to 31.2% in 2016 for the first time surpassed the G7. Particularly impressive is the development of China — from 7.1 to 17.6 % and India from 4.23% to 7.3%. Asian States — the only one who was able to increase its value.
However, other countries of BRICS (Brazil, Russia and South Africa) in the last two decades have been forced to cope with severe economic crises and could not significantly improve its position in the global economy. The situation is similar in other developing countries such as Mexico and Turkey.
Anyone who follows the G20 summits in the past already could detect the signs of change in the global balance of power. Western industrialized countries are now much rarer than in the past, it is possible to implement their plans. One example is the treatment of Russia. At the summit of “twenty” in 2014 in Brisbane Australia, and many Western countries would prefer to cancel the invitation of President Vladimir Putin from-for illegal annexation of the Crimean Peninsula belonging to Ukraine. But the BRICS countries have opposed. Moreover, on the sidelines of the summit together with Russia, they established their own development Bank as a counterweight to the world Bank, which is dominated by industrialized countries.
In addition, old fall camp, and the camp of industrialized Nations in Hamburg will be pretty compartmentalized. The President of the United States Donald trump criticizes free trade and therefore opposes the rest of the G7.
