History of the G20


The Group of Twenty (G20) was formed in 1999 and was originally a meeting of the Minister of Finance and the Governor of the Central Bank in an effort to broaden the discussion of policies that are beneficial for resolving the global economic and financial crisis. As an economic forum, the G20 is a membership of 19 countries , i.e. US, Argentina, Brazil, Australia, Canada, Mexico, Turkey, Indonesia, South Korea, Japan, China, Germany, Britain, India, Saudi Arabia, South Africa, Italy, France, Russia, and one regional organization namely the European Union As for the Managing Director of the International Monetary Fund (IMF) and the President of the World Bank together with the Chair of the International Monetary and Financial Committee and the Development Committee participated at the meeting of the Ministers of Finance and the Governor of the Central Bank on an ex officio basis.

The formation of the G20 is inseparable from the disappointment of the international community over the failure of the G7 in finding solutions to the problems of the global economy at that time. The view that emerged at the time was the importance of middle-income countries and those with systemic economic influence to be included in the negotiations in order to find solutions to global economic problems.

At the beginning of its formation, the G20 focused on efforts to reform the global financial system as one of the keys to responding to the global economic crisis. In line with the improvement in world economic conditions, at the 2009 G20 Summit in Pittsburgh, USA, the G20 objectives were formulated more clearly, namely to create strong, sustainable and balanced economic growth. To realize this goal, the G20 Summit in Cannes, France in 2011 agreed that the G20 has the responsibility to "coordinate their policies and produce political agreements that are very important in addressing challenges due to conditions of global economic interdependence" ( to coordinate their policies and generate the political agreement necessary to tackle the challenges of global economic interdependence).

As a major world economic forum that has a strategic position because it collectively represents around 65% of the world's population, 79% of global trade, and at least 85% of the world economy, various G20 meetings put forward dialogue to build the political commitment of the leaders of the world's major economic leaders in resolving challenges which affects global economic growth, including issues of finance, trade, infrastructure and investment, energy, employment, corruption eradication, development, agriculture, and technology, innovation, and the digital economy.

To discuss these issues, the G20 is divided into two channels, namely the financial track and the Sherpa track. The financial channel, which consists of Finance Ministers and Central Bank Governors from all G20 members, specifically addresses a number of agendas related to the financial sector. Meanwhile, the Sherpa track addresses other agendas that are outside the financial sector, as well as preparing various documents to be discussed at the Summit. Therefore, Sherpas are generally appointed directly by the Head of Government / Country and are seen as their representation at various G20 meetings in addition to the Summit.

The G20 does not have a permanent Secretariat. In the process and system of its work, the G20 has a Presidency determined by consensus by its members based on regional rotation and changes every year. Therefore, every year the "Troika" - which consists of the previous presidency, the current year presidency, and the upcoming presidency - conduct intensive communication and coordination to ensure the continuity of the G20 agenda.