By Robert Presser on November 4, 2009
In 1976, French President Valery Giscard d’Estaing decided that it would be a good idea to invite the leaders of the major western economic powers (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America) to an informal summit at a chateau outside of Paris to discuss their current common economic problems, giving birth to the G7. Later expanded to include Russia (G8) this intimate grouping of world powers dominated the international economic and trade agenda until the Asian currency crisis of 1997 had ripple effects around the world, making a broader consultative forum a priority to encourage cooperation with the developing world. That body was christened the G20, and today it represents nearly 85% of worldwide economic output (GDP) though 90% of the world’s countries are not at the table.
