G-20 : World's Major Economies

What is the G-20?

The G-20, or Group of Twenty, is a forum of the world's largest economies. Together its members account for more than 80% of global GDP, around 75% of world trade and roughly two-thirds of the world's population. Because so much of the world's money, trade and people sit inside one room, what the G-20 agrees can shape the global economy well beyond its own membership.

Origins and evolution of the G-20

The G-20 was founded in September 1999, in the aftermath of the East Asian financial crisis of 1997. It began as a group of finance ministers and central bank governors drawn from 19 major economies plus the European Union.

Better representation of emerging economies

Several of the world's fastest growing emerging economies had a large and rising influence on the global financial system, yet little say in the discussions that governed it. The G7, a group of seven major industrial countries, set up the wider forum to bring these emerging and developing economies into the conversation.

Raised to summit level

Today the G-20 is the most important international forum for cooperation on the world's most pressing financial and economic questions. It met at ministerial level every year from 1999, and in 2008 it was raised to summit level to respond to the global financial crisis of that year. The annual summit is now attended by the heads of state and government of the member countries. India hosted a meeting of G-20 finance ministers and central bank governors as early as 2002.

What are the objectives of the G-20?

The G-20 works towards a set of shared goals, including:

• Coordinating economic policy between members to support global economic stability and growth.
• Shaping financial rules that reduce risk and help prevent future financial crises.
• Helping build a stronger international financial system.

Its central concern is to keep international policy coordination steady and well timed, so that member economies pull in the same direction rather than against one another.

Who are the members of the G-20?

The 20 founding members are Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States.

Spain attends every summit as a permanent guest invitee. In 2023 the African Union joined as a permanent member too, so the forum now has 21 permanent members even though the familiar name G-20 has stuck. That change is worth understanding in full, and the section below explains it.

Why is the G-20 important?

In recent years the G-20 has become the main forum where its members work together on the global economy and take decisions on the issues that matter most for long term growth and stability. A few features explain why it carries so much weight:

• It is one of the few tables that brings developed and emerging economies together as equals.
• Its members account for the large majority of the world economy and most of the world's population.
• Beyond its own members, it invites guests each year, including the chairs of regional bodies such as the African Union, ASEAN and APEC.

Because its membership is so broad, the G-20 works closely with major international organisations, including the International Monetary Fund (IMF), the World Bank, the Financial Stability Board, the Organisation for Economic Co-operation and Development (OECD), the World Trade Organization (WTO), the United Nations, UNCTAD and the International Labour Organization (ILO).

The G-20 is working to strengthen the financial system and widen financial inclusion, to improve food security and manage swings in commodity prices, and to push forward the fight against climate change.

How the G-20 works

The G-20 has no permanent secretariat and no standing staff of its own. Over more than two decades it has instead built a workable way of running itself. To understand how it operates, it helps to know three things: the Troika, the Sherpa Track and the Finance Track.

The chair and the five groups

Each year a different member holds the chair, or presidency, and it rotates by region. For this purpose 19 of the countries are sorted into five regional groups:

• Group 1: Australia, Canada, Saudi Arabia and the United States.
• Group 2: India, Russia, South Africa and Turkey.
• Group 3: Argentina, Brazil and Mexico.
• Group 4: France, Germany, Italy and the United Kingdom.
• Group 5: China, Indonesia, Japan and South Korea.

Each group holds up to four countries. Every year one country from a single group takes the chair, and the turn rotates between the groups.

The Troika

The Troika is a three member steering group made up of the past, present and future chairs. Working as a trio keeps the agenda steady from one year to the next, so priorities are not dropped every time the presidency changes hands.

The Sherpa Track and the Finance Track

The Sherpa Track and the Finance Track prepare the summit and follow up on the promises made there. The Sherpa Track handles the wider, non-financial issues such as development, anti-corruption and food security, along with the internal running of the G-20 process. Every member appoints a sherpa who negotiates on the leader's behalf and carries the agreements through.

The Finance Track, made up of finance ministers, central bank governors and their deputies, focuses on economic and financial matters. Around these two tracks sit many ministerial meetings, on labour, agriculture, tourism and more, that shape the agenda by theme.

Why it still matters

The G-20 is not a piece of history. It keeps changing, and one of its biggest changes is deeply relevant to India. At the New Delhi summit in September 2023, held during India's presidency, the African Union, a bloc of 55 member states, was admitted as a permanent member. It became only the second regional body, after the European Union, to win a permanent seat, bringing a continent of about 1.5 billion people to the table (Council on Foreign Relations).

That shift was visible again in 2025, when South Africa held the presidency and Johannesburg hosted the Leaders' Summit on 22 and 23 November, the first G-20 summit ever held on African soil (G20 Research Group). From 1 December 2025 the presidency passed to the United States, which is due to host the 2026 Leaders' Summit in Miami (Wikipedia). So the Troika in your notes is a living idea, not a fixed list: for 2026 it links South Africa, the United States and the country that will take over the chair in 2027.

All of this points to a bigger question you can carry into an essay or a Model G-20 debate: who gets a seat at the tables that run the world economy, and who is still left waiting outside. If that question interests you, the Learnacy Hub maps how global institutions connect, and you will find more International Relations study notes in our Resources library.

Sources

1. https://www.cfr.org/backgrounders/what-does-g20-do
2. https://www.g20.utoronto.ca/summits/2025johannesburg.html
3. https://en.wikipedia.org/wiki/2026_G20_Miami_summit

Key takeaways

• The G-20 is an international forum of major economies that accounts for over 80% of global GDP, about 75% of world trade, and roughly two-thirds of the global population.
• Founded in 1999 for finance ministers following the East Asian financial crisis, the group was elevated to a summit for heads of state in 2008 to address the global financial crisis.
• The main objectives of the forum are to coordinate global economic policies, create rules to prevent future financial crises, and build a stronger international financial system.
• Originally made up of 19 countries and the European Union, the group expanded to 21 permanent members when the African Union joined in 2023.
• The organization operates without permanent staff, using a rotating presidency and a three-member steering group called the Troika to maintain a consistent agenda across years.

Test yourself

In what year was the G-20 founded?

1999

Which organization became a permanent member of the G-20 in 2023?

The African Union

What is the purpose of the G-20 Troika?

It keeps the agenda steady from one year to the next so priorities are not dropped when the presidency changes.

Frequently asked questions

What defines the G-20 as a forum for the world’s major economies?

The G-20 is defined by its membership of the world’s largest economies, which together account for over 80% of global GDP, around 75% of world trade, and roughly two-thirds of the world’s population.

Why was the G-20 originally created?

The G-20 was founded in 1999 in response to the East Asian financial crisis of 1997, initially as a group of finance ministers and central bank governors to include major emerging economies in global financial discussions.

How does the G-20’s structure ensure broad representation in global economic governance?

The G-20 brings together developed and emerging economies as equals, and its membership includes major international organizations and regional bodies as guests, ensuring diverse perspectives in decision-making.

What role do the G-20’s annual summits play in global economic stability?

The annual summits, attended by heads of state and government, focus on coordinating economic policies to support global stability and growth, and to prevent future financial crises.