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G20 must address euro crisis

By Amitendu Palit | China Daily | Updated: 2012-06-19 08:03

The seventh G20 summit opened at Los Cabos in Mexico on Monday. The importance of the G20 is evident from the fact that the members of the group account for more than 80 percent of the world's output and trade, and more than 60 percent of the global population.

The composition of the G20 is unique: economies with high per capita incomes and high levels of social development co-existing with the fastest-growing economies that are still developing. The economies referred to as the developed "North" include the G8 group - the United States, the United Kingdom, Canada, Italy, Germany, Japan, France and Russia - and Australia. The countries representing the high-growth developing countries of the "South" include China, India, Brazil, South Africa, South Korea, Indonesia, Mexico, Argentina, Saudi Arabia and Turkey. During the last decade there has been a gradual change within the G20 in the balance of economic power between the developed "North" and the developing "South".

The financial crisis of 2008 and the debt crisis in Europe have resulted in major problems for several G8 countries. Most of the emerging market economies have been able to maintain a steady rate of economic growth. Led by China, the other economies from this group that are performing well are India, Brazil, Argentina, Indonesia and Mexico. As a result of their better economic performances, the ability of the emerging market and developing economy members of the G20 to influence the group's decisions has increased.

G20 must address euro crisis

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