Difference Between G8 and G20

The G8 and G20 are coalitions of nations that address significant international issues. The predecessor of both coalitions was the G7, a group of seven nations that banded together in 1975 to oppose the 1973 oil embargo put into place by the Arabs as a protest against the intervention of the United States and the United Kingdom during the Yom Kippur War. The Arab nations waged war against Israel, but were unsuccessful because the United States and United Kingdom provided Israel with weaponry and military might.

The U.S.S.R., which was by then on the verge of breaking up, supplied the Arab nations with weapons, and – because of this move – was not invited to join the G7. The G7 was formally known as the Group of Seven Industrialized Nations. Its members were Britain, United States, France, Canada, Japan, Italy, and Germany. The G7 was renamed to the G8 in 1997, when Russia was added to the original seven-country lineup. Ever since its inception, the G7 and G8 asserted several political and economic policies that affected other countries.

The G7 and G8 became known on the international scene as the major policy-makers capable of promoting or disrupting political and economic stability. The latest instalment of the G8 is called the G20, a greater coalition formed in 1999, which includes the nations of Brazil, China, Saudi Arabia, Republic of Korea, France, Australia, China, Canada, Germany, Indonesia, Argentina, Turkey, India, Russia, South Africa, Mexico, Japan, United Kingdom, United States, and the European Union.

While the G20 is supposed to acknowledge all members as equals, it cannot be denied that the countries that were included in its predecessor, the G8, have an advantage over the remaining members in terms of political and economic policy-making. So far, the economic policies that the G20 has decided on since 2010 include regulations to improve bank capital, strict disclosure of compensation policies, and the setting aside of portions of compensation for performance and risk. All of these are economic measures the G20 believes will alleviate any potential future economic crises.

There are many theories as to why the G8 chose to include other countries in the coalition. The first theory is that this was done for economic reasons, since many of the newly-added nations are developing countries with great potential of swaying the world economy in the future, especially the emerging powerhouse economy of China. By inviting China into the G20, other countries can intervene directly in China’s economic and political affairs and benefit from its huge economic capability. Another theory relates to the current economic crisis faced by Western countries, especially the United States and the United Kingdom. Many of the nations invited to the G20 are Eastern ones, such as Saudi Arabia, China, and South Korea, and could offer aid in the form of monetary debts to the feeble economies of the West.

Summary:

1. Both the G8 and G20 originated from the G7, a seven-nation coalition that included Britain, United States, France, Canada, Japan, Italy, and Germany.
2. The G7 was formed in order to counter the oil embargo imposed by the Arab Nations due to the intervention of the United States and United Kingdom in the Yom Kippur War. The G7 greatly influenced international economic and political decision-making.
3. In 1997, Russia joined the ranks of the G7, and the coalition was renamed to the G8.
4. In 1999, the G8 added sixteen new nations, and the coalition was renamed to the G20. Emerging economic powerhouse China, along with two other Eastern nations, Saudi Arabia and South Korea, were the most notable additions to the coalition. Currently, the G20’s aims focus on alleviating the effects of present and future economic crises.