G20's role in global economy

Worldwide slowdown and difficulties call for nations to take co-ordinated steps and work together for universal benefits

The 1997 Asian Financial Crisis increased the need for a more inclusive and balanced global economic architecture. The 2008 Global Financial Crisis further highlighted the flaws of the current international financial architecture, and the G20 became the premium forum for international economic cooperation with its role in crisis management and prevention strengthened. This was historic because, for the first time systemically important emerging countries were given a bigger voice at the core of global economic governance.

Although it is difficult to strike the right balance between representativeness and effectiveness, and it needs to and could be improved through better policy coordination and internal functioning, the G20 has proved to be the most effective forum for international economic cooperation. However, the G20 needs to stick to its commitment to increasing inclusiveness by opening the door to countries from under-represented regions and carrying out outreach activities.