The G20 (Group of Twenty) is an intergovernmental forum that functions as an informal process for strategic economic cooperation among the world's largest economies. It comprises 19 sovereign countries, the European Union (EU), and the African Union (AU). The G20 was formally established on September 26, 1999, at the suggestion of the G7 finance ministers. It was created in response to the global financial crisis of 1997-99 (specifically the East Asian Financial Crisis) to broaden dialogue on economic and financial policy among systemically significant economies. Initially a forum for finance ministers and central bank governors, it was elevated to the level of Leaders' Summits (Heads of State/Government) starting with the meeting in Washington DC on November 14-15, 2008, to coordinate the global response to the financial crisis.
The G20 operates without a permanent secretariat through two parallel mechanisms: the Finance Track and the Sherpa Track. The Finance Track is led by finance ministers and central bank governors, focusing on macroeconomic coordination, financial regulation, and international taxation. The Sherpa Track, led by personal emissaries of the Leaders called Sherpas, coordinates the substantive work on broader issues like climate change, health, and development. The chair rotates annually, and the current, previous, and incoming chairs form the Troika to ensure continuity. The G20's decisions are made by consensus and are non-binding.
The G20 is connected to the Bretton Woods institutional system and works closely with international organizations like the International Monetary Fund (IMF), the World Bank, the United Nations (UN), and the World Trade Organization (WTO), often giving them mandates. A significant recent change occurred in 2023 at the New Delhi Summit, where the African Union was permanently included as a full member, expanding the forum's representation. While its core mechanism of the two tracks and the Troika has stayed the same, its agenda has expanded from its initial focus on financial stability to include a wider range of issues like sustainable development and climate change.