An unravelling of the Group of Seven

Context: The inability of the current multilateral institutions in handling various persistent crisis around the world has pushed towards the expansion of G7. Its value depends on the focussing on key global issues.

Background of G7:

• A restricted club of rich democracies: In the early 1970s, five of the most developed members (the US, Germany, Japan, Italy, and the United Kingdom) of OECD came together to discuss global issues.
• G7 Summit: Transformed into the summit with the inclusion of Canada (1976), and the EU as a non-enumerated member.
• Entry-Exit of Russia: G7 became G8 with the inclusion of Russia (1998), but in 2014 reverted to G7 with the expulsion of Russia in the wake of Crimean Annexation.

The logic of expansion:

• Isolating China: The inclusion of the Five Eyes countries (intelligence alliance comprising of Australia, Canada, New Zealand, the UK, and the US) to counter China displays its anti-china character.
• Changing economic circumstance: Increasing the economic potential of developing countries vis-a-vis developed countries (According to the global accountancy firm PwC)

• Decline of G7: The G7 countries now account for less than a third of global GDP on a purchasing power parity (PPP) basis (2/3rd when constituted). 
• Rise of E7 (“Emerging 7”): comprising Brazil, China, India, Indonesia, Mexico, Russia and Turkey, account for over a third of global GDP on purchasing power parity (PPP) terms.

• Rise in India’s Significance:

• India’s economy: already the third-largest in the world in PPP terms. 
• India’s GDP Projection: increase to $17 trillion in 2030 and $42 trillion in 2050 in PPP terms, second place after China, just ahead of the United States. 
• India and G7: India has attended several G7 summits earlier, as a special invitee for its outreach sessions. This should hold down China’s objection to an expanded G7

• Limitation of G7:

• Failed to tackle the 2008 crisis: led to the rise of G20, providing confidence by promoting open markets and stimulus.
• Neglect of contemporary issues: including pandemic, climate change, the challenge of Daesh and crisis of state collapse in West Asia
• Outdated group: as it no longer properly represents “what’s going on in the world” (US President).
• High contribution to global CO2 emissions: accounts for 59% of historic global CO2 emissions (from 1850 to 2010).

Way forward: A New multilateral Institution

• Focus on key global issues: India would be vitally interested in three: international trade, climate change, and the COVID19 crisis. 
• Reviving multilateralism: push for observing international law and preventing the retreat from liberal values on which public goods are predicated. 
• Attend second-order priorities: including cross cutting issues such as counterterrorism and counterproliferation; effective implementation of the 1975 Biological Weapons Convention 

• Stabilizing West Asia: 

• Establishing a modus vivendi with Iran to ensure that it does not acquire nuclear weapons. 
• The end state in Afghanistan would also be of interest to India
• Reduction of tensions in the Korean Peninsula and the South China Sea.