In News:

• Prime Minister Modi left for Germany to attend the G7 Summit. This year’s G7 Summit will be held under the German Presidency on 26-27 June 2022.

What’s in Today’s Article:

• G7 – Origin, members, purpose, significance, power, G7 & G8, India’s participation
• News Summary

In Focus: G7

Origin

• The origin of G7 lies in the oil shocks of 1973 and the corresponding financial crisis.
• In order to address the situation after oil shock, the heads of the world's six leading industrial nations decided to hold a meeting in 1975.
• These six nations were - the US, UK, France, Germany (West), Japan and Italy.
• These countries were joined by Canada in 1976 and G7 came into existence.

Current Members

• US, UK, Canada, France, Germany, Italy and Japan are the current members of this group.
• It can be said that the members of this group are the most developed and the advanced economies of the world.
• The European Union is also represented within the G7.
• 

Purpose of G7

• To determine the course of multilateral discourse
• To shape political responses to global challenges.
• Basically, G7 provides a platform to discuss and coordinate solutions to major global issues, especially in the areas of trade, security, economics, and climate change.

Significance:

• Economic Significance
  • As of 2018, the G7 nations account for:
    • close to 60 percent of global net wealth ($317 trillion),
    • 46 percent of global gross domestic product, and
    • about 770 million people or 10 percent of the world's population.
• Political Significance
• Political heavyweights are capable of shaping the response of Multilateral challenges.
• In 1999, it created the Financial Stability Forum in order to manage the international monetary system
• G7 & COVID-19 Pandemic
  • 47th G7 summit (held in June 2021) focused on the recovery from ongoing COVID-19 pandemic.
  • It promised to distribute 1 billion vaccines to poorer countries
  • Its theme was Global Action to Build Back Better.
• Developmental Significance
  • G-7 provided $300 million in 1997 to help build the containment of the reactor meltdown at Chernobyl.
  • G7 played crucial role in setting up a global fund to fight malaria and Aids in 2002.
  • In October 2020, G7 finance ministers backed an extension of a G20 bilateral debt relief initiative for the world's poorest countries.
    • It is also known as Debt Service Suspension Initiative (DSSI).
    • It means that bilateral official creditors are, during a limited period, suspending debt service payments from the poorest countries that request the suspension.

Power of G7

• The G7 is not based on a treaty and has no permanent secretariat or office. The agenda of G7 is set by the presiding nation.
• It cannot pass any laws because it is made up of separate nations with their own democratic processes.
• However, decisions taken by G7 have global effects as the member countries are political and economic heavyweights.

G7 & G8

• In 1998, Russia was formally inducted in the group, which transformed G7 into G8.
• However, Russia annexed Crimea in 2014. As a result, it was suspended from the grouping.
• Hence, the group became G7 again in 2014.

India’s Participation in G-7 so far

• Since 2014, this is the third time the Prime Minister will be participating in a G7 meeting.
  • India had been invited by the G7 French presidency in 2019 to the Biarritz Summit as a “Goodwill Partner”.
  • India was also invited at the 47^th G7 Summit held under the presidency of UK.
  • The US under President Donald Trump had extended an invitation to India in May 2020.
    • However, due to the pandemic and the US election outcome, that did not happen.
• During Prime Minister Manmohan Singh’s tenure, India attended the G8 Summit five times.
  • In March 2014, Russia was indefinitely suspended following the annexation of Crimea, reducing G8 to G7.

News Summary

• PM Modi will be visiting Schloss Elmau, Germany for the 48^th G7 Summit under the German Presidency.

Key Highlights:

• Theme
  • Theme of this year’s G7 summit is - Progress towards an equitable world
• Five major goals of current G 7 Summit
  • Strong alliances for a sustainable planet
  • Setting the course for economic stability and transformation
  • Enhanced preparedness for healthy lives
  • Sustainable investments in better future
  • Stronger together
• Other countries invited
  • Besides India, Germany has also invited other democracies such as Argentina, Indonesia, Senegal and South Africa to the G7 Summit.
  • This is to strengthen international collaboration on important global issues impacting humanity.