Before to describe advantages and disadvantages, it’s obviously essential to debate about G8 and the origin of his figure. Without any doubts the seed of G8 can be found on the Conference on security and cooperation in Europe hold in Helsinki which the final act had known as Helsinki Accords however they were more articulate and more relevant for international law.
In particular that Conference gives the way of future trend which states as doubtless territory with effective own sovereignty should talk outside of them as globally as they could, even around a only specific field.
Consequently the wave of Oil crisis during by 1973 meanwhile burnt the Arab – Israeli conflict, the Prime Minister and Chief of State of the richest countries for GPD, in 1975 decided to hold a summit in Rambuillet under the auspicious of French President Girard d’Estang.
Firstly, the topic on the base was “how to better coordinate our economy”. After the unilateral end of Bretton – Woods system, six countries tried to get reliable countermeasure for reducing the impact of future crisis and for re- organizing financial system among them.
Probably, the United States, Japan, Germany, France, the United Kingdom, Italy and in 1976 lastly Canada, they didn’t recognize immediately which advantage they had got. They started with only a annual session meeting and a annual presidency rotation.
For 20 years the members were still the same and on the annual meeting case by case organizations as World Bank, International Monetary Fund and World Trade Organization have been invited.
Therefore G8 has never been a relevant decision – maker, it’s the expression of a capitalistic system on the eyes of public opinion as countries pressure group extremely powerful.
In summary, the most of the guidelines for leading the global financial market were settled on G8. Not only, the perception as a important geopolitical instrument was proved when in 1997, despite the weakness of Eltsin Russia, which replaced the Soviet Union after the fall, it was invited to sit on the meeting table.
Obviously, the essential aspect of expansion rose over the vanishing of Soviet clout and over the emerging countries such India and China. Apparently, the GDP size, unconditional status for being include, had been abandoned.
Doubtless, one advantage of this “exclusive club” was the high level of attraction due mainly of economical goal. In fact, on 2000 five emerging countries include India and China jointed the group – G8+5.
Logically, during this past two years, the group have become an important bulwark of multilateral action around more field than only economical. Such new global vision is totally summarized in the slogan of new 2011 French presidency “New world, New Ideas”.
Firstly, new world or rather new Bretton Woods said Sarkozy as an overhaul of the international monetary system and a “moralisation” of capitalism.
Secondly, introducing new ideas such easing global imbalances and currency tensions, and curbing volatility in commodity market.
But the great challenge seems to be on reforming the international monetary order especially above the role of Juan (Chinese currency) and the probable inclusion of it in the IMF Special Drawing Right (SDR). Everything to avoid a possible currency war.
Probably, using diplomacy for talking above many fields can be an advantage. But the huge number of the membership can carry along a systemic fragmentation mining the decision procedure. Another problematic aspect can be summarized around China and United States relations.
Actually along was debated that G20 is G2 – China and Usa. The concerns of the other countries about the most important economy for GDP are on their interests and how they want to keep them outside of the institution. The power containment of Washington and Beijing inside the group could be another disadvantage.
In addition, the clout of each among the other countries may more fragment the G20 future way of acting. How to overtake the China and Usa hegemony and their clout can be a great challenge inside G20.