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16 June 2009
Group of Eight 2009 Summit: An Introduction

By Merle David Kellerhals Jr., Staff Writer

Washington — The Group of Eight (G8) major industrialized economies will meet in L’Aquila, Italy, in July for the 35th annual summit amid a time of transition in the global economy.

“The force of the economic storm is receding. There are encouraging signs of stabilization across many economies,” U.S. Treasury Secretary Timothy Geithner told G8 finance ministers June 13 at their preparatory meeting before the summit leaders convene next month. “The improvement in conditions is a tribute to the power of cooperation.”

At a White House meeting June 15, President Obama and Italian Prime Minister Silvio Berlusconi discussed the agenda for the summit that will be held July 8–10. One area that the major economies are focused on is setting common rules on transparency, borrowing practices and other measures that would result in better regulation of the global financial system.

In addition, Obama said food security will be discussed to determine how G8 nations can help nations that are facing the most desperate poverty. Berlusconi said food security and assistance will be addressed in depth, and he praised the United States for leading the way in increasing global food aid. In addition, Berlusconi said, climate change and energy security will be on the agenda.

World Trade Organization Director-General Pascal Lamy has been invited to attend the G8 forum, Berlusconi said, to help push action on the Doha round of trade-liberalization talks, which has been stalled over an array of trade issues. The Doha negotiations are focused on expanding global trade by encouraging nations to reduce trade barriers and trade subsidies.

G8 CREATED IN 1975

The Group of Eight was created by France in 1975 as an informal forum for the six largest industrialized economies of the Northern Hemisphere — Britain, France, West Germany, Italy, Japan and the United States. It was born out of the 1973 oil crisis and global recession.

In 1975, French President Valéry Giscard d’Estaing called the leaders of the other five countries to a summit in Rambouillet. There, they decided to hold the meetings annually, with each nation taking a turn to serve as host and chair. The European Union is represented at the meetings, but does not act as host.

Canada joined the group in 1976 to make it the G7, and Russia became a member in 1997 to form the G8.

G8 ministers meet many times during the course of the year. The finance ministers meet four times a year, and the foreign ministers and environmental ministers meet less frequently.

The annual holder of the G8 presidency sets the summit agenda in consultation with the other members, hosts the summit and determines which ministerial meetings will be held.

In recent years, some members have pushed to expand the group’s size, and the Outreach Six (O6), which encompasses Brazil, China, India, Mexico, South Africa and Egypt, has been included in the G8 for talks. They will also be joined this year by Australia, Denmark, Indonesia, South Korea, the Netherlands and Spain, Berlusconi said.

Berlusconi, who is chairing the 2009 forum, said the G8 will also be attended by representatives of a number of international organizations, such as the International Monetary Fund and World Bank, and the African Union and representatives of some African nations. “We are going to discuss the development of this continent [Africa] and the issue of hunger in that area,” Berlusconi said.

Unlike many international organizations, such as the United Nations or NATO, the G8 has no formal structure, no administrative staff or international headquarters or even a mailing address. It remains informal, but highly cooperative and focused on coordination of action.

The 2009 summit is being held in L’Aquila, a city in the Abruzzo region of Italy, less than 100 kilometers (60 miles) east of Rome. The city was badly damaged by an earthquake in April, and the Italian government decided to move the annual summit there from La Maddalena on Sardinia to symbolize the rebuilding of the region.

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