The Group of Seven (G7), comprising the world’s seven richest countries, is no longer effective and should be replaced by a new group that includes developing economies such as China, India, and Brazil, stated World Bank President Robert Zoellick.
In a speech ahead of the G7 finance ministers’ meetings in Washington this coming weekend, Zoellick said that the global financial crisis represents a wake-up call that requires broader cooperation among more countries. "G7 is not functioning," asserted Zoellick, referring to the group of wealthy nations that includes the U.S., Canada, the U.K., Germany, France, Italy, and Japan."We need a better group for different times."
"A new multilateralism that would suit the current age will need to be a flexible network rather than a fixed or unitary system," said Zoellick."We need to maximize the benefits of interlinkages and overlaps among participants and institutions, both public and private," he added. The expanded group should include finance ministers from China, India, Brazil, South Africa, Saudi Arabia, and Russia. However, this group should not be limited to a specific number of countries but should be flexible and evolve over time.
According to the reforms Zoellick envisioned for the G7, the new group would encompass more than 70 percent of the world’s gross domestic product, 56 percent of the world’s population, 62 percent of global energy production, as well as the largest global emitters of greenhouse gases, major donor countries, and key participants in global capital, goods, and currency markets. The new system would respect state sovereignty but would require a certain degree of shared responsibility, Zoellick emphasized. (H)
