Washington — The Group of Eight (G8) nations, representing the most advanced global economies, will discuss a range of economic, political, security and development issues during a two-day summit in France, but will be particularly focused on setting a sounder foundation for economic growth in the aftermath of the 2007–2009 recession.
The leaders of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States and representatives from the European Union will meet May 26–27 in Deauville, in Normandy. Among the greatest concerns is a plan for building a global economy less prone to the wide expansions and contractions — known as the “boom and bust cycle” — that have characterized the previous 20 to 30 years, a White House adviser says.
It is a plan that will be a significant part of the discussions November 3–4 at the Group of 20 (G20) summit in Cannes, France.
“There will be a discussion of the global economy and the situation of the global recovery, of risks to that global recovery, as well as dialogue around trade and climate change,” Mike Froman, the deputy national security adviser for international economic affairs, said May 20 during a press briefing in advance of President Obama’s travel to Europe May 23–28.
Over the course of the week, the president is visiting Ireland, the United Kingdom, France and Poland.
“The G8 will focus largely on political security and development issues,” Froman said. Any discussion of the global economy will be “in the context of what’s going on in Europe currently and the United States currently, as well as Japan.”
These talks will fit well with the discussions held in the G20 on the importance of global economic rebalancing, including encouraging more domestic demand in the major surplus countries and increasing savings in the major deficit countries, he said.
The G20 has become the premier forum for international economic cooperation. Issues include rebalancing financial regulation, strengthening national economies, and laying the foundation for more stable growth.
Froman said that one G8 session this year will include the prime ministers from Egypt and Tunisia, as well as World Bank President Robert Zoellick, U.N. Secretary-General Ban Ki-moon, and representatives from the International Monetary Fund.
The G8 leaders will also meet with leaders from nine African countries: Algeria, Côte d’Ivoire, Egypt, Ethiopia, Guinea-Conakry, Niger, Nigeria, Senegal and South Africa. The focus of these meetings is development, and also political and security issues, Froman said.
SIX TO EIGHT
The G8 forum began as the Group of Six in Rambouillet, France, in 1975, during a dinner meeting of leaders from France, Germany, Italy, Japan, the United Kingdom and the United States. It grew out of the 1973 oil crisis that nearly crippled the economies of the largest nations.
Canada joined the group a year later to create the G7. In 1997 Russia was added to create the G8.
The European Union is represented in the forum, but cannot serve as the host or chair its annual summits. The summits are held in one of the eight nations every year, and the host nation acts as chair and sets the agenda for the two days of talks.
There are separate summits held for G8 finance ministers and central bankers, foreign ministers, justice ministers and environmental ministers. The finance ministers generally meet four times a year.
The G20, formed in 1999, includes the G8 members plus Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea, Turkey and the European Union.