To promote more representative dialogue, the G8 should be expanded to include eight counterparts from the developing world. This expansion would allow for greater participation by developing countries in reviewing global economic policy issues. Representatives would be included from democratic states in different regions of the world.
Jeffrey Sachs, 1998
Further info. sources - text
Sachs, Jeffrey:"Global Capitalism: Making it Work" in The Economist September 12 1998 pp23-25
The grouping of the most powerful industrialized countries, the G7/G8, both review and formulate recommendations for the global economy. The G7 consists of Canada, France, Germany, Italy, Japan, the UK, and the USA. Russia is sometimes added as the 8th member (although the world�s 8th largest economy is, in fact, Brazil.) Developing countries are excluded from these discussions and decisions.
Replacing the next G8 Summit with a G16 Summit, including eight counterparts from the developing world, could lead to a sense of shared stewardship in the global economy. This would provide developing countries with a voice in defining a more just global economic landscape. The proposal is to replace the G8 with a G16, not to form an additional grouping alongside the G8.
A criterion for inclusion in the G16 would be democratic governance. Jeffrey Sachs recommends Brazil, India, South Africa and South Korea as the four core members of these eight developing countries.
There is a need for more balanced and equitable governance of the global economy. The process of discussion among 8 developed and 8 developing countries could form part of the solution. This process would require commitment towards debate and negotiation. The G16 would aim for fundamental reform of the international assistance process and signal an abandonment of the belief that the IMF and the World Bank can micro-manage the process of economic reform.
Significance of Policy Proposal
It would take little effort to include eight counterparts from the developing world in the annual G8 discussions; inviting them would promote a more encompassing approach to the governance of globalization. Their inclusion would enrich the discussion on topics of common concern that transcend national boundaries, including ecological degradation and international movements of people and capital.
This proposal requires a distinct change in the current layout of international relations. It is doubtful that the G8 countries would embrace the idea of including less developed counties in their meetings. Also, questions arise regarding which countries would be included, given the disparate interests of the countries that make up the �developing world.� Some countries would, undoubtedly, exert pressure to be included over others.
Sach�s proposal emerged in the wake of the Asian financial crisis of 1998. The G20 was initiated in 1999, largely in recognition of the growing economic power of developing countries. This grouping includes developed countries and major developing countries. One of its declared objectives is to examine policy issues among industrialized and emerging markets with a view to promoting international financial stability. Membership includes Argentina, Brazil, China, India, Indonesia, Saudi Arabia, South Africa, South Korea and Turkey, as well as the main industrialized countries. However, the remit of this body is limited and its functions only advisory. To date, the G20 has met rarely and major economic discussion and decision-making at a global level remains with the industrialized countries, meeting in the G8.