G7 and G20 groups
Membership of the G7 and G20 economic organisations gives the USA another opportunity to influence other countries.
The G7, is a forum for major advanced economies Advanced economies refer to countries that have highly developed industrial and technological infrastructures, well-established financial systems, and high standards of living. to discuss and coordinate policies, address global challenges, and promote international cooperation. Its members are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
The G20 is a global forum of 19 individual countries and the European Union. Leaders from member countries meet annually to exchange ideas and collaborate on solutions for global economic growth and stability.
The US is the leading power in the G20/G7 group of nations. These 7 or 20 nations are the countries which produced 30% or 75% of the world鈥檚 wealth in 2022.
The 2024 G7 meet will be held in Puglia, Italy with the G20 meet in Rio, Brazil.
Summits or meetings of the leaders of the G7 / G20 countries offer the opportunity for the US and other group members to develop closer economic ties to expand trade. In addition, it allows the US another forum to discuss issues of global concern such as:
- environmental issues
- terrorism
- conflict
- poverty
In 2014, Russian membership of the G8 (which became the G7) was suspended when Russia annexed the Crimea Peninsula from Ukraine. However, with the Russian invasion of Ukraine in 2022, the G7 nations, who are strongly on the side of Ukraine, introduced a range of economic sanctions to restrict Russian trade and to weaken its economy. As the war in Ukraine has progressed, the members of the G7 group have supported Ukraine financially and militarily against Russia. In late 2023, the G7 members were also looking at ways of confiscating up to $300 billion of Russian assets to further weaken Russia.
The G20 has similar aims to the G7 but includes an additional 13 members to reflect the growing economic importance of countries such as Brazil, India, and Indonesia.
Build Back Better World (B3W)
In 2021, G7 leaders at a summit in the UK, announced a new plan to counter increasing Chinese global economic influence. This plan, called Build Back Better World (B3W), aims to better support developing countries by offering finance for infrastructure projects such as roads, railways and airports, which brings those countries who get involved, closer to the G7 nations.