G7 Summit: Why Inclusion of India, China, and Russia is Crucial
G7 Summit Overview
Canada is currently hosting the G7 Summit, a three-day event that will wrap up on June 17. This summit gathers leaders from some of the world's most developed economies, including the United States, France, the United Kingdom, Italy, Germany, Canada, Japan, and the European Union.
In addition to these leaders, representatives from international organizations such as the United Nations, World Bank, and International Monetary Fund (IMF) are also participating. This year's meeting is taking place in Kananaskis, Alberta, a secluded town nestled in the Canadian Rockies. Canada is presiding over the G7 for the seventh time.
Canadian Prime Minister Justin Trudeau has extended invitations to several leaders from outside the G7, including Indian Prime Minister Narendra Modi.
G7 Membership and Economic Impact
The G7 comprises Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, collectively representing a GDP of $47.33 trillion, which is about 44.58% of the global GDP.
However, the population represented by this group is significantly smaller. According to Worldometer, the G7 nations have a combined population of 789.92 million, making up less than 10% of the world's total population. The absence of two of the world's largest economies and a major military power raises questions about the G7's relevance.
To enhance its significance, the G7 should consider evolving into a G10 by including China, India, and Russia.
Historical Context of the G7
Established in 1975 by French President Valéry Giscard d'Estaing and German Chancellor Helmut Schmidt, the G7 was initially known as the Group of Six, comprising France, Italy, Japan, the UK, the US, and West Germany. Canada joined the following year, forming the G7.
In 1980, G7 countries represented 13% of the global population and 62% of the world's nominal GDP. The group expanded to the G8 with Russia's inclusion in 1998 but reverted to the G7 after Russia's expulsion in 2014 following the annexation of Crimea.
The G7 focuses on critical areas such as energy policy, international security, and global economic management, playing a pivotal role in addressing these issues worldwide.
Population Dynamics
As per Worldometer, the global population is approximately 8.23 billion. India and China, with populations of 1.46 billion and 1.42 billion respectively, account for 35% of the world's population. Russia, with 144 million people, ranks second in population among the current G7 members.
The question arises: how can the G7 effectively tackle global issues while excluding countries that represent such a significant portion of the world's population?
Economic Considerations
The total nominal GDP worldwide is estimated at $106.17 trillion in 2023, with the G7 contributing $47.33 trillion. The US alone accounts for 58.56% of this total.
China's GDP stands at $17.795 trillion, India's at $3.568 trillion, and Russia's at $2.021 trillion, collectively contributing $23.384 trillion, or 22.03% of the global GDP. Notably, China is the second-largest economy globally, while India ranks fifth, surpassing four G7 nations.
The debt-to-GDP ratio is another critical metric. Japan leads the G7 with a staggering ratio of 249.67%, followed by Italy at 134.79%, and the US at 123.01%. In contrast, India, China, and Russia maintain significantly lower ratios.
Military Strength Comparison
In terms of military power, the Global Firepower ranking indicates that the G7 excludes three of the world's top four military powers. The US leads military spending at $895 billion, followed by China at $266.8 billion, Russia at $126 billion, and India at $75 billion.
The G7 collectively spends $305.3 billion on military efforts, which is considerably less than the combined $467.8 billion spent by China, Russia, and India.
Among the G7, only the US, UK, and France are recognized as nuclear powers, while Russia, India, and China also possess nuclear capabilities but are not part of the G7.
Potential G10: A New Era
Incorporating India, China, and Russia into the G7 could transform it into a G10, significantly enhancing its economic and geopolitical relevance. The combined GDP would rise to $70.714 trillion, representing 66.61% of the global total.
This expansion would also increase the group's population representation to 3.81 billion, or 46.29% of the world's population. The military capabilities would also see a substantial boost, with the G10 comprising four of the top five military powers.
The G10 would not only be more representative but also more balanced, potentially reducing US dominance and fostering a more equitable dialogue on global issues.
Conclusion
The G7, while historically significant, no longer reflects the current global economic and geopolitical landscape. The exclusion of rising powers like India, China, and Russia undermines its credibility as a global forum. Expanding to a G10 would enhance its representativeness and effectiveness in addressing global challenges, highlighting the need for a more inclusive approach in a multipolar world.