In the same way, as the International Monetary Fund (IMF) and World Bank, the Group of 20 (G20) is an international financial authority. However, G20 does not participate in lending or providing any financial assistance to the members, and the G20 is a monetary authority tasked with addressing the most emerging global economic challenges of the day.
Composition And Mission
The G20 is composed of the world’s economic superpowers, financial leaders, and developing nations. As a whole, G20 members represent each continent (excluding Antarctica), ⅔ of the total world’s population and 85% of global economic output. It is officially made up of 19 member nations, the Europian Union (EU) and permanent guest country Spain. Find a list of the individual member nations by region:
Africa: South Africa
Asia: China, India, Indonesia, Japan, South Korea
Americas: Argentina, Brazil, Canada, Mexico, United States
Europe: France*, Germany*, Italy*, Russia, United Kingdom*, EU members
Middle East: Saudi Arabia, Turkey
*Featured EU economies, with the United Kingdom scheduled to depart in March 2019
G20 does not have permanent headquarters or physical offices, and its bodies convene on a regional basis throughout the year. It serves as an independent think tank, the G20’s formal mission statement is as written follow:
Act as a facilitator and mediator for expert discourse, with a focus on innovation-driven communication.
Initiate and coordinate communication between governments, business, academia, and youth, in an effort to create a sustainable win-win situation for all involved.
The main activity of the G20 is the annual Leaders Summit, where heads of state, central bankers, and several civil and business leaders are coming together to share ideas regarding global economic health.The main activity of the G20 is the annual Leaders Summit, where heads of state, central bankers, and several civil and business leaders are coming together to share ideas regarding global economic health.
The first Leaders Summit took place in 2018 in Washington D.C., United States. Since that time, the periodic meeting has been held in various international locales:
The 2018 Leaders Summit took place in Buenos Aires, Argentina, from 30th November to 1st December. There were more than 5000 delegates participated in more than 100 meetings, mainly focused on industry and finance. For 2019, Japan was nominated to host the summit, and in 2020 the duty falls to Saudi Arabia.
Since the annual G20 Leaders Summit is attended by the most prominent heads of state and business in the world, breaking news from their meetings and conferences leads to movement in prices in equities and currency markets.
OPEC is the abbreviation of the Organization of the Petroleum Exporting Countries, which is a cartel of some of the largest oil-producing nations in the world. At an early age, OPEC was able to play a significant role to decide the world price of oil, making it a big discussion in political and economic issues.
In the past decades, the group has lost a lot of its market and political power because of many reasons:
- Some of its members were not politically and economically stable;
- Internal wars among its members over the pricing policies and other differences;
- Falling market share as other non- OPEC countries have come up with their own production;
- Conservation efforts around the world to cut the uses of oil and go for renewable fossil fuels.
OPEC was created in September 1960 at the Baghdad Conference in Iraq. The five founding members were Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. After it was expanded by Qatar in 1961, Libya in 1962, the United Arab Emirates in 1967, Algeria in 1969, Nigeria in 1971, Angola in 2007, and Equatorial Guinea in 2017. Some countries joined and then suspended their membership like Ecuador in 1992 and then rejoined in 2007. Gabon, which joined in 1975, quit in 1995 and then rejoined in 2016. Indonesia joined in 1962, left in 2009, came back in 2016, then quit again later in the same year. So, the group had 14 members in April 2018.
Its Statute says: “any country with a substantial net export of crude petroleum, which has fundamentally similar interests to those of Member Countries, may become a Full Member of the organization, if accepted by a majority of three-fourths of Full Members, including the concurring votes of all Founder Members.”
The group’s mission “is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”
Even though OPEC doesn’t have any Europian members, the headquarters are in Vienna. They moved to Vienna after spending the first year in Geneva.
According to the organization, the group’s members hold 81.5 % of the world’s proven crude oil reserves as of 2016, or said in barrels, 1.2 trillion barrels. The lion’s share of that, or about two-thirds of OPEC’s total proven reserves, is in the Middle East.3
Among individual countries:
International Monetary Fund (IMF)
International Monetary Fund has been a crucial figure in global finance. It was created during the post-Great Depression era, and it influences governance worldwide while promoting worldwide currency and economic stability.
Its creation At Bretton Woods
In July 1944, delegates from 44 countries met at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. They were discussing the most critical issues of the day: the exchange rate stability and international debt. The concept of IMF was developed as a solution to these problems, and then it was introduced to the whole world.
International Bank for Reconstruction and Development and International Monetary Fund are two essential mechanisms for economic and monetary cooperation between competing for world powers.
The self-stated mission of the IMF is multi-fold and is as follows: