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Mahesh

15/06/24 13:42 PM IST

Italy hosts G7 Summit

In News
  • Prime Minister Shri Narendra Modi held a bilateral meeting with H.E Mr. Fumio Kishida, Prime Minister of Japan recently on the sidelines of the G-7 Summit in Apulia, Italy.
About G7
  • The G7 originated from a 1973 meeting of finance ministers and central bank governors in Paris, France.
  • This meeting was convened in response to major economic challenges of at time – an oil crisis, rising inflation and collapse of the Bretton Woods system. Under this, the value of the US dollar was fixed against gold.
  • In turn, other global currencies pegged their values to the dollar. But over time, the dollar was seen to have been overvalued against the fixed rate.
  • Therefore, a new mechanism had to be devised for exchange rates and this required global cooperation.
  • Thus, the idea of a forum was born, where major industrialised democracies could coordinate economic policies to address common challenges.
  • The first G7 summit was held in 1975 in Rambouillet, France, bringing together the leaders of France, Germany, the United Kingdom, the United States, Italy and Japan. Canada joined the next year.
  • Since 1977, representatives of the European Economic Community, now the European Union, have also participated.
  • Russia’s inclusion in 1998 expanded the group to the G8, but its membership was suspended in 2014 following its annexation of Crimea.
Significance
  • Over the years, the G7 has evolved from an economic forum to a platform which aims to address a range of global challenges.
  • While it lacks a permanent administrative structure, the G7 rotates its presidency annually and the presidency serves as a temporary secretariat.
  • The G7 has achieved several milestones and played a crucial role in shaping international policies.
  • It has been instrumental in coordinating economic policies, promoting free and fair trade practices, shaping global governance issues, and supporting security cooperation and development assistance.
Agenda of 2024 Summit
  • The upcoming G7 summit in Italy holds significance for several reasons.
  • First, it aims to coordinate economic policies to stabilise the global economy amidst concerns over inflation and trade tensions.
  • Second, the summit will focus on addressing climate change by discussing strategies to reduce carbon emissions and promote sustainable energy sources.
  • With climate records tumbling recently, collective action is key to addressing such problems.
  • Third, in light of the lessons learned from the Covid-19 pandemic, the G7 will prioritise global health initiatives, including pandemic preparedness and vaccine distribution.
  • Additionally, the summit will address geopolitical tensions, including relations with China and Russia, and ongoing conflicts with global implications.
Source- PIB

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