Global Governance at a Crossroads: The Significance of the 2024 G7 Summit

Explainer

By Harshita Khaund; Bhavana Sethuraman

Amidst a constantly evolving geopolitical landscape which is increasingly witnessing global hostilities at an alarming rate, the cornucopia of international summitry heralding the panacea of global governance provides a vital platform for navigating the jungle of international politics. The G7 or Group of 7 remains an exemplary international coalition representing one of the most significant annual gatherings of world leaders. The Summit of 2024, which is scheduled to take place from June 11 to June 13 in the Apulia region of Italy, promises to address crucial global issues that have the potential to shape global policies for coming years in the backdrop of complex geopolitical dynamics.

As Italy takes the reins of hosting the annual summit, the informal panel of advanced democracies representing the dominant economic powers of the day is hard-pressed to arrive at a consensus and build diplomatic resolutions to the ongoing Russia-Ukraine war on one front, and the Israel-Palestine crisis on the other. Furthermore, as leading economies of the coalition head towards monumental elections, notable for their uncertain forecasts, the ongoing summit reflects an eleventh-hour attempt for the status quo to get done what it can, while it can. The growing significance of the larger multilateral body of the G20 and its Global South-inclusive membership body further raises questions about the relevance of the historically ‘Atlantic-oriented’ outlook of the G7 and the larger argument about its position in contemporary international affairs.

Tracing the G7's Journey: From Economic Crisis to Global Governance

The seeds of the G7 conclave can be traced back in time to an informal gathering in the magnificent seating of the Rambouillet Castle called for by French President Valerie Giscard d’Estaing convening the leaders of the United States of America, the United Kingdom, Italy, Germany and Japan in 1975. This Group of 6 expanded to include Canada the following year in Puerto Rico under the leadership of US President Gerald Ford, heralding the start of the G7. The degree of informality and candour enjoyed under the auspices of the summits is a testament to the shared democratic values of the participant countries, depicted by proponents as a form of ‘small and homogenous membership’ promoting collective decision-making.

At the Ottawa summit in 1981, the European Union formally participated in the proceedings of the conclave as a ‘non-enumerated’ member represented by the presidents of the European Council. A more radical shift in the constitution of the congregation was evident with the inclusion of Russia in the 1990s to broaden the scope of the coalition to a Group of 8. The participation of Russia, strongly advocated by the then US President Bill Clinton, was motivated by strategic interests of bringing the country led by its first post-Soviet leader securely into the folds of Western alliances. While Russia’s formal claim to membership at the Denver summit of 1997 received pushback from concerns about aligning Russian economic policies laden with burgeoning public debt to that of stable growth experienced by the West, the most hardline opposition to Russian membership came with the backsliding of Russian democracy under the leadership of Vladimir Putin. The final blow was cast by Russia’s annexation of Crimea in 2014, which led to its expulsion in the same year.

G7 2024: Embracing Global South and Historic Significance

The 50th G7 summit this year is being held at the luxury resort Borgo Egnazia, nestled in the breathtaking landscape of the Apulia region of Italy which boasts a rich historical allure and delicious cuisines. The ancient city, once renowned as a thriving Messapian centre, was also home to crucial ports along the Via Egnatia which served as a crucial bridge connecting Western and Eastern civilizations. Italian Prime Minister Giorgia Meloni’s choice of location for the summit thus reflects a profound historical significance, signalling the historical roots of cultural exchange and inviting collaboration and unity.

Another sign of unity and inclusivity is reflected in the guest list for the event. Besides the core 7, Italy has rolled out its red carpets to welcome the King of Jordan as well as the leaders of Ukraine, India, Brazil, Argentina, Turkey, the United Arab Emirates, Kenya, Algeria, Tunisia and Mauritania which presently holds the leadership of the African Union, marking a crucial tilt in its orientation as it grapples with the contemporary reality of increasing prominence of Global South countries. Additionally, Pope Francis is stated to be in participation who will be the first leader of the Catholic Church to address a G7 gathering and lend an air of religious authority. The European Union is a participant to all the discussions and is being represented by the President of both the European Council and the European Commission. Multilateralism stands as a hallmark of the gathering, with the added presence of the Secretary-General of the United Nations and heads of leading economic coalitions including the World Bank, the IMF, the African Development Bank and the Organisation for Economic Cooperation and Development (OECD).

Agenda for the Summit:

The agenda for the session is likely to be dominated by thorny global challenges, inaugurated by a discussion on Africa, climate change and development. Although the G7 has envisioned a 40-42% reduction in carbon emissions by 2030, policy reports reveal that currently, it is slated to achieve merely 19-33% of its reduction goals. As a coalition of the economic powerhouses of the globe, the summit casts a harsh spotlight on the leaders to reinforce their commitments and explore innovative strategies to meet their emission reduction goals, with a particular emphasis on transitioning the energy economy towards clean sources. Africa as a discussion point sits atop Italy’s crown jewel of foreign policy as part of the Mattei Plan with its agenda of establishing Italy as a clean energy bridge source between the European Union and Africa, thereby decreasing dependence on Russian exports.

This is followed by a session discussing developments in the Middle East, where Israel’s war on Gaza is expected to dominate headlines. It comes in the aftermath of US President Joe Biden’s three-phase ceasefire proposal calling for an initial six-week ceasefire and the exchange of Israeli captives, to be followed by a permanent ceasefire and the reconstructive efforts for restoring the Gaza strip. The proposal, which has received support from the G7 body and members of the UN Security Council, underscores the urgent priorities of the G7 leaders to curb geopolitical instability in the region through spillover effects particularly in oil-rich countries. The G7’s final communique is expected to demonstrate sentiments demanding a “no full-scale invasion” strategy for Rafah on the part of Israel.

The ongoing conflict in Ukraine, which remains a central concern for the G7 nations, is set to lay the stage for high-impact discussions with the active involvement of Ukrainian President Volodymyr Zelenskyy in pressing Western nations for increased financial and military support. On the heels of a US proposal carefully chartered by the Biden administration, leaders of the G7 have agreed to generate a 46 billion euros loan to Ukraine using interest earned on approximately $281 billion worth of frozen assets of Russian central bank funds left in Western financial institutions. Besides sending a clear message on continued financial support, the proposal reaffirms expansive US sanctions targeting Russian financial systems and their ability to gain access to technological instruments for powering its military arsenal, in what is widely proclaimed as a show of unity for Ukraine.

Along the sidelines, Ukraine is also expected to hold bilateral meetings to chalk out security pacts primarily with US President Joe Biden and Japanese Prime Minister Fumio Kishida on critical military issues including the development of Ukraine’s air defence systems. Notable in this regard is the signing of a 10 year security deal between the US and Ukraine which includes adding squadrons of fighter jets including F-16s to the pre-existing $46 billion worth of military support provided since the start of the conflict. Russia, in response to the loan agreement, has vowed to retaliate through reciprocal actions which it promises will be “extremely painful for Brussels”.

India's Strategic Role in the G7: A Growing Global Influence

India's engagement with the G7 summit highlights its growing global influence and strategic importance. Historically, India has been a regular invitee to the G7, with this summit marking its 11th participatory meet as an Outreach Country, signifying its role as a key player in addressing global challenges. Marking the first international trip of recently elected Prime Minister Narendra Modi in his third consecutive term in office, the summit presents an international platform for India to continually push for its stance of an inclusive and participative international governance platform while raising issues of importance to India and the broader Global South. Following closely on the heels of its G20 presidency last year, India is set to take a leading role in building consensus on contentious issues including AI technology, climate change and economic security, and the state of conflicts. On the sidelines of the summit, the PM is further expected to hold bilateral talks with Italian Prime Minister Giorgia Meloni as a continuum of their dialogue after her visit to India in 2023.

India's participation in the G7 summit is driven by several key objectives. Firstly, India seeks to bolster its position as a major economic and political power. With a GDP comparable to that of the UK and higher than that of France, Italy, and Canada, India aims to leverage its economic prowess to influence global economic policies. Secondly, India's stance on international law and its responsible global behaviour enhance its appeal to the G7. Unlike China, which has often been criticised for its aggressive territorial claims and disregard for international rulings, India has demonstrated a commitment to resolving disputes through legal channels. Additionally, India's strategic alliances and its role in regional security are pivotal in the G7 context.

However, it remains unsure if the Prime Minister will be taking this opportunity to address the frosty turn of relations between India and Canada in light of claims made by the latter on the former’s alleged conduct of extrajudicial killings of dissenters. On the issue of the Russia-Ukraine and Israel-Palestine conflict, India is expected to renew its advocacy for peaceful resolution and mediation led by democratic processes.

The G7’s Legacy and Future: Addressing Internal Divisions and Global Realities

Emerging from the 1990s, an increasingly vocal scholarship questioned the insufficient inclusivity provided by the economic management framework of the G7 in light of a series of financial crises centred around Latin America and Asia. The resultant Group of 20, which boasts a wider membership of countries reflecting a holistic outlook of Global South interests, seemed poised to topple the dominance of the G7 with prominent academics such as Colin Bradford and Johannes Linn suggesting for the G7 to “end the pretence that it is the global steering committee”.

A fundamental debate in this regard is the growing wedge between seemingly like-minded Western democracies, crystallised in their divided opinion over the Israel-Hamas war. As recently as May of 2024, France and Japan joined 141 other countries in voting for Palestinian membership to the United Nations, while the United States voted against the resolution and Canada, Italy, Germany and the UK abstained from voting, severely brandishing their image as unified consensus builders. While its raison d’etre in recent years has shifted from an inter-Western outlook to a global perspective, the notable absence of rising powers such as China and India remain palpable and has forced the congregation to extend invitations to outsider countries in order to maintain their relevance and touch with geopolitical realities.

The crucifix of the G7’s standing - as a branded grouping of leading economies of the world - becomes questionable if we take into account contemporary economic standings of different countries, with China and India featuring among the top 5 countries in terms of GDP growth rates. Alternatively, the philosophical cornerstone of the grouping as a formidable institution steering the global economy-politics nexus stands on shaky grounds as it increasingly starts to mirror a narrow club of policy sanctioners lacking representation and the ability to take decisive action. The grounds beneath further give away when we consider the political realities of its core leadership - President Biden in a cauterised state of political mobility as its support continues declining in the face of upcoming elections, Canada’s Trudeau battling a disenchanted public, and a surge of right-wing populism in Europe which has destabilised the democratic fabric of Europe. Thus, President Macron’s decision to call for snap elections in France after his party suffered a staggering defeat runs parallel with German Chancellor Olaf Scholz’s backsliding popularity. Polls have all but confirmed Rishi Sunak’s Conservative Party being swept out of power in the upcoming UK elections.

What the G7 can capitalise on is its established institutional history, effectively employing its informal and smaller size to arrive at meaningful conclusions which otherwise may be hampered with the inclusion of diverse perspectives. Its annual frequency further allows it to retain a sense of continuity, where friendly nations which are frequently engaged in bilateral communication throughout the year can come together to formulate a communique which gives precedence to substance and form. As the global order faces a relapse in its peace and democracy indices, this G7 summit presents a hopeful light at the end of the tunnel to set the grounds for building back better.  

Disclaimer: This paper is the author's individual scholastic contribution and does not necessarily reflect the organization's viewpoint.