Abstract
Sometimes it takes a crisis to change. The upgrade of the G20 to the level of the heads of state and government was one of the major institutional outcomes of the recent global financial and economic crisis. The development depicts a dramatic turnaround: In 2007, the G8 invited large emerging countries within the “Heiligendamm Process” on a restricted number of topics. A year later, the G20 convened for the first time at leaders’ level, thereby making emerging countries such as China, India and Brazil permanent members. In 2009, the G20 was established as the “premier forum of global economic coordination”, and South Korea was the first emerging country holding the presidency for a G20 leaders’ meeting in 2010.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi-Arabia, South Africa, South Korea, Turkey, the UK, and the US. The 20th member is the European Union.
- 2.
They were only members of the “Finance G20” that met since 1999.
- 3.
G20, Leaders Statment: the Pittsburgh Summit, 24th & 25th September, 2009 available at www.g20.org/documents/pittsburgh-summit-leaders-statement_150909.pdf. last visited on 18th oct 2011.
- 4.
Assessments of the emerging countries’ role in and towards the G8 are more advanced, see e.g., Cooper/Antkiewicz (eds.), Emerging Powers in Global Governance: Lessons from the Heiligendamm Process, 2008.
- 5.
See “After the G20”, Financial Times, 13th November, 2010, p. 16. See also Zhang, G20 and Global Governance: Challenges and Impacts, in: Fues/Wolff (eds.), G20 and Global Development: How can the new summit architecture promote pro-poor growth and sustainability, 2010, p. 63, available at: http://www.die-gdi.de/CMS-Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-8A5CS9/$FILE/E-Publication_G20.pdf.
- 6.
Malloch-Brown, “How the G20 glasshouse is under attack”, Financial Times, 12th November 2010, p. 11.
- 7.
For a similar assessment of developing countries in the G20 group of finance ministers, see Martinez-Diaz, The G20 after Eight Years: How Effective a Vehicle for Developing-Country Influence? Brookings Global Economy and Development Working Paper No. 12, 2007; Pisani-Ferry, “The G20 agenda sounds a lot like that of the G7”, The Economist, 29th June, 2010, available at: http://www.economist.com/economics/by-invitation/guest-contributions/g20_agenda_sounds_lot_g7 (last visited on 6th October, 2010).
- 8.
We use the term G8 as proxy for industrialized countries while technically being a member of the G8 group of countries. Russia is left out of analysis as it is not a full member of the group in questions of economical and financial policy. It is acknowledged that G8 members can also differ in their positions and strategies. Disagreements among them are highlighted in the description of policy stances below.
- 9.
Goretti/Joshi, “A Step Closer to a Stronger Global Financial Safety Net”, IMF Survey Magazine, 30th August, 2010, available at: http://www.imf.org/external/pubs/ft/survey/so/2010/pol083010a.htm (last visited on 15th February, 2011).
- 10.
Khatiwada, Stimulus Packages to Counter Global Economic Crisis: A Review, International Institute for Labour Studies Discussion Paper No. 196, 2009, pp. 10 and 27–32, available at: http://www.ilo.org/public/libdoc/ilo/2009/109B09_49_engl.pdf (last visited on 11th January 2011); Yang, Country Fact Sheet – China, in: Pohlmann/Reichert/Schillinger (eds.), The G-20: a “Global Economic Government” in the Making?, International Policy Analysis, Friedrich Ebert Foundation, 2010, p. 22, available at: http://library.fes.de/pdf-files/id/ipa/07284.pdf.
- 11.
See, e.g., the BRIC countries joint communiqué, available at: http://www.reuters.com/article/idUSLE470008 20090314 (last visited on 21st January, 2011).
- 12.
G20, The G-20 Toronto Summit Declaration, 26th and 27th June, 2010, p. 5, available at: http://www.g20.org/Documents/g20_declaration_en.pdf.
- 13.
Germany, France, and the United Kingdom pushed for an EU-wide bank levy. US President Obama initiated a national bank levy for lenders with assets exceeding 50 billion USD. Obama eventually gave up the levy in return for Congress support for the Dodd Frank Act on financial regulation.
- 14.
The introduction of a coordinated levy was also endorsed by the former IMF Managing Director Dominique Strauss-Kahn at the 2010 spring meeting of the IMF and the World Bank.
- 15.
“India cold to global bank tax proposal as G20 meet”, Financial Express, 27th June, 2010, available at: http://www.financialexpress.com/news/india-cold-to-global-bank-tax-proposal-as-g20-meet-opens/638907/ (last visited on 10th January, 2011); Jones, “G20 waffles on bank tax”, The Globe and Mail, 3rd June, 2010, available at: http://www.theglobeandmail.com/news/world/g8-g20/economy/g20-waffles-on-bank-tax/article1590440/ (last visited on 7th September, 2010).
- 16.
G20, The Seoul Summit Leaders’ Declaration, 11th and 12th November, 2010, available at: http://media.seoulsummit.kr/contents/dlobo/E1._Seoul_Summit_Leaders_Declaration.pdf (last visited on 1st February, 2011).
- 17.
Geithner, Written Testimony, House Financial Services Committee, Washington, DC, 22nd September, 2010, available at: http://financialservices.house.gov/Media/file/hearings/111/Treasury_Testimony092210.pdf (last visited on 1st February, 2011).
- 18.
Barnier cited in: “EU welcomes Basel III global banking rules”, Business & Leadership, 13th September, 2010, available at: http://www.businessandleadership.com/leadership/item/25567-eu-welcomes-basel-iii/ (last visited on 15th February, 2011).
- 19.
In addition to India, Brazil and Australia, Korea Mexico and Russia were invited to join BCBS in March 2009
- 20.
Ning/Bo, “CBRS sees little impact from Basel III on bank”, China Daily, 19th September, 2010, http://www.chinadaily.com.cn/business/2010-09/19/content_11322145.htm (last visited on 16th February, 2011).
- 21.
Gorawantschy et al., G20-Gipfel in Toronto: Im Zeichen wachsenden Selbstbewusstseins – Indien, KAS Länderbericht, Konrad Adenauer Foundation, p. 3, available at: http://www.kas.de/wf/doc/kas_20147-544-1-30.pdf (last visited on 16th February, 2011); Barman/Sokhi, “Proposed Basel III rules not to impact Indian banks much”, Daily News & Analysis, 8th September, 2010, available at: http://www.dnaindia.com/money/report_proposed-basel-iii-rules-not-to-impact-indian-banks-much_1434990 (last visited on 16th February, 2011).
- 22.
Ku/Armstrong, “Asia regulators say G20 reform driven by U.S., Europe”, Reuters, 29th November, 2010, available at: http://www.reuters.com/article/2010/11/29/asia-regulation-idUSL3E6MT0GO20101129 (last visited on 1st February, 2011).
- 23.
G20, G-20 Toronto Summit Declaration, 26th and 27th June, 2010, available at: http://www.g20.org/Documents/g20_declaration_en.pdf (last visited on 1st February 2011).
- 24.
The International Monetary Fund, The G20 Mutual Assessment Process and the role of the fund, 2nd December 2009.
- 25.
G20, Meeting of finance Ministers and Central Bank Governors, Communique, Paris, 18th to 19th February, 2011.
- 26.
United States, China, Germany, France, United Kingdom, Japan and India.
- 27.
China (People's republic of China) Current Account Balance Statistics, Economy Watch, www.economicwatch.com/economic-stastics/china/current_account_balance_percentage_GDP/. last visited on 19th oct 2011.
- 28.
See Xue/Zhang, National Perspectives on Global Leadership: China, NPGL Soundings: November 2010, available at: http://www.cigionline.org/publications/2010/11/national-perspectives-global-leadership-china (last visited on 21st January, 2011).
- 29.
Chatterjee, “PM Economy Lesson for G20 Leaders”, The Telegraph, 28th June, 2010, available at: http://www.telegraphindia.com/1100628/jsp/nation/story_12619325.jsp (last visited on 21st January, 2011); “India to oppose cap on current a/c balances-source”, Reuters, 21st October 2010, available at: http://www.reuters.com/article/2010/10/21/g20-india-idUSTOE69K03U20101021 (last visited on 1st February, 2011).
- 30.
Mantega cited in: Landau, National Perspectives on Global Leadership: Brazil, NPGL Soundings: June 2010, available at: http://www.cigionline.org/publications/2010/6/national-perspectives-global-leadership-brazil (last visited on 21st January, 2011).
- 31.
Böhme et al., G20-Gipfel in Toronto: Im Zeichen wachsenden Selbstbewusstseins, KAS Länderbericht, Konrad Adenauer Foundation, p. 5, available at: http://www.kas.de/wf/doc/kas_20147-544-1-30.pdf; see also Yang, Country Fact Sheet – China, in: Pohlmann/Reichert/Schillinger (eds.), The G-20: a “Global Economic Government” in the Making?, International Policy Analysis, Friedrich Ebert Foundation, 2010, p. 23, available at: http://library.fes.de/pdf-files/id/ipa/07284.pdf.
- 32.
E.g., “Brüderle: Lockere Geldpolitik der USA ist falsch”, Reuters, 23rd October, 2010, available at: http://de.reuters.com/article/topNews/idDEBEE69M03F20101023 (last visited on 21st January, 2011).
- 33.
Wheatley/Leahy, “Trade war looming, warns Brazil”, Financial Times, 9th January, 2011, available at: http://www.ft.com/cms/s/0/6316eb4a-1c34-11e0-9b56-00144feab49a.html#axzz1BOgiojnd (last visited on 18th January, 2011).
- 34.
Quoted in Mistral: National Perspectives on Global Leadership: France, NPGL Soundings: November 2010, available at: http://www.cigionline.org/publications/2010/11/national-perspectives-global-leadership-france (last visited on 21st January, 2011).
- 35.
Each IMF member country is assigned a quota, based broadly on its relative position in the world economy. The quota determines its maximum financial commitment to the IMF, its access to IMF financing, and its voting power in the Fund. See also Meeting of Finance Ministers and Central Bank Governors, Communiqué, Gyeongju, 23rd October, 2010, available at: http://www.g20.utoronto.ca/2010/g20finance101023.pdf (last visited on 25th October, 2010); IMF Press Release No. 10/418, IMF Executive Board Approves Major Overhaul of Quotas and Governance, 5th November, 2010, available at: http://www.imf.org/external/np/sec/pr/2010/pr10418.htm (last visited on 9th November, 2010).
- 36.
While many commentators and policy makers outside the US also made this argument, the US was clear in the reform process.
- 37.
E.g., Xue/Zhang, National Perspectives on Global Leadership: China, NPGL Soundings: November 2010, available at: http://www.cigionline.org/publications/2010/11/national-perspectives-global-leadership-china (last visited on 21st January, 2011).
- 38.
E.g., Lee, “G20 urged to speed up IMF reform”, Korea Times, 1st September, 2010, available at: http://www.koreatimes.co.kr/www/news/biz/2010/10/123_72401.html (last visited on 16th February, 2011).
- 39.
Nogueira Batista, “Europe must make way for a modern IMF”, Financial Times, 23rd September, 2010, available at: http://www.ft.com/cms/s/0/8b57a684-c744-11df-aeb1-00144feab49a.html (last visited on 1st October, 2010).
- 40.
E.g., the BRIC countries joint communiqué, 14th March, 2009, available at: http://www.reuters.com/article/idUSLE47000820090314 (last visited on 21st January, 2011).
- 41.
Elsinger/Gnath, G8 und G20: Eine neue Agenda für Sicherheit und Entwicklung, in: Braml et al. (eds.), Einsatz für den Frieden. Sicherheit und Entwicklung in Räumen begrenzter Staatlichkeit, Jahrbuch Internationale Politik Vol. 28, 2010, pp. 344–350.
- 42.
Xue/Zhang, National Perspectives on Global Leadership: China, NPGL Soundings: November 2010, available at: http://www.cigionline.org/publications/2010/11/national-perspectives-global-leadership-china (last visited on 21st January, 2011); see also Yang, Country Fact Sheet – China, in: Pohlmann/Reichert/Schillinger (eds.), The G-20: a “Global Economic Government” in the Making?, International Policy Analysis, Friedrich Ebert Foundation, 2010, p. 23, available at: http://library.fes.de/pdf-files/id/ipa/07284.pdf.
- 43.
Singh cited in Bhattachariee, “PM claims ‘some credit’ for development focus”, Financial Express, 14th November, 2010, available at: http://www.financialexpress.com/news/pm-claims-some-credit-for-development-focus/710805/0 (last visited on 1st February, 2011).
- 44.
Persaud, The locus of financial regulation: home versus host, ICRIER, available at: http://www.icrier.org/pdf/Avinash%20Persaud-%20Session%201-Paper.pdf (last visited on 16th February, 2011).
- 45.
Sachs, “Die neuen Schwergewichte”, Handelsblatt, 16th December, 2010, available at: http://www.handelsblatt.com/meinung/gastbeitraege/geopolitik-die-neuen-schwergewichte;2713339 (last visited on 1st February, 2011).
- 46.
International monetary fund, World Economic Outlook update, 25, January, 2011.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Gnath, K., Schmucker, C. (2012). The Role of the Emerging Countries in the G20: Agenda-Setter, Veto Player or Spectator?. In: Herrmann, C., Terhechte, J. (eds) European Yearbook of International Economic Law 2012. European Yearbook of International Economic Law, vol 3. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23309-8_21
Download citation
DOI: https://doi.org/10.1007/978-3-642-23309-8_21
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-23308-1
Online ISBN: 978-3-642-23309-8
eBook Packages: Humanities, Social Sciences and LawLaw and Criminology (R0)