All About G7, G20 & BRICS : Global Political & Economic Significance Decoded

So, in this article you are going to see Political & Economic importance of G7, G20 & BRICS which are Inter-Governmental organizations. Read it full for full information.

G7 – Group of Seven Countries

Definition:

The G7 is an informal intergovernmental group of seven of the world’s most advanced economies:
Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

 Formed:

1975 (originally as the G6, Canada joined in 1976)

Why it was formed:

• In response to the 1973 oil crisis and global economic recession.
• Aimed to provide a platform for major industrialized nations to discuss and coordinate on global economic issues.
• Focuses on: macroeconomic policy, international trade, security, climate change, and development.

G20 – Group of Twenty Countries

Definition:

The G20 is a forum of 19 countries plus the European Union representing the world’s largest economies, both developed and developing.

 Formed:

1999 (first leaders’ summit in 2008, in response to the global financial crisis)

Why it was formed:

• Created to expand global economic discussions beyond the G7.
• Became critical after the 2008 financial crisis as a platform to stabilize the global economy.
• Focuses on: financial stability, climate change, digital economy, health, and development.

G20 Members:

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, and the European Union.

BRICS – Group of Countries for Emerging Economies

Definition:

BRICS is a grouping of five major emerging economies: Brazil, Russia, India, China, and South Africa.

 Formed:

• Initially as BRIC in 2006
• Became BRICS with South Africa’s inclusion in 2010

Why it was formed:

• Created to challenge the Western-dominated global order (e.g., G7/IMF/World Bank).
• Promotes multilateralism, economic cooperation, and development among emerging markets.
• Focuses on: trade, finance, development banks (e.g., New Development Bank), political coordination, and reforming global institutions.

Extra Reference :

G7 & G20

BRICS

Importance of G7, G20 & BRICS Inter Governmental Organizations :

In Short :

• G7 has more political alignment, rooted in shared values (democracy, rule of law).
• G20 includes both developed and developing nations, giving it broader economic legitimacy.
• BRICS aims to be an alternative to Western-dominated forums, especially in finance and development.

G7 vs G20 – Mission, Vision, Key Goals & Achievements :

BRICS – Brazil, Russia, India, China, South Africa

Mission:

• Strengthen cooperation among emerging economies.
• Promote peace, development, and a multipolar world order.

 Vision:

• A just, inclusive, and multipolar global governance system.
• Greater representation for developing countries in global institutions.

 Key Goals:

• Reform Bretton Woods institutions (IMF, World Bank).
• Promote sustainable development and financial cooperation.
• Enhance trade, investment, and technology exchange within the Global South.

 Key Achievements:

• Created the New Development Bank (NDB) to fund infrastructure and development.
• Established the Contingent Reserve Arrangement (CRA) to support members during financial shocks.
• Held annual summits and expanded political and economic influence through BRICS+ discussions.
• Actively challenged Western dominance in international institutions.

G7, G20 & BRICS : Political & Economic Successes :

G7 – Political & Economic Successes

Africa-Focused Initiatives

• Clean Energy Transition in Africa
  • Launched projects in 7 African nations (incl. Kenya, Nigeria, South Africa) to scale solar, wind, hydrogen, and grid infrastructure.
  • Goal: Help Africa achieve universal access to electricity and reduce emissions by 2030.
• Migration & Security
  • G7 created an intelligence-sharing network to combat human trafficking and smuggling—with support to transit and origin countries in Africa and the Middle East.

Global Wins

• $50 Billion Aid Pledge to Ukraine (2024):
  Using profits from frozen Russian assets to back a major loan, symbolizing financial innovation in geopolitical aid.
• Debt Relief Advocacy
  Supported debt suspension for low-income countries during COVID-19—helping many African countries redirect spending to health and education.

 G20 – Economic Impact & Coordination

Global Financial Leadership

• 2008 Global Financial Crisis Response
  G20 coordinated $5 trillion in fiscal stimulus, preventing deeper global depression.
• International Tax Reform (2021–2023)
  • 15% global minimum corporate tax adopted by 140+ countries.
  • Targeted against tax base erosion—generating ~$150 billion annually for public services (including education).
• COVID-19 Response
  • Debt Service Suspension Initiative (DSSI): Deferred ~$12.9 billion in payments for 73 low-income countries.
  • ACT-Accelerator & COVAX: Ensured equitable vaccine access; over 1.8 billion doses delivered to LMICs.

BRICS – Emerging Economies Leading Development

Financial & Infrastructure Achievements

• New Development Bank (NDB)
  • $32.8 billion disbursed since 2015 across 96 projects in transport, water, energy, sanitation, and digital infrastructure.
  • Funded several African projects including:
    • $1 billion COVID-19 loan to South Africa.
    • Transport corridor upgrades in Eastern/Southern Africa.
• Contingent Reserve Arrangement (CRA)
  • $100 billion reserve pool to support member countries in currency or debt crises.

Education & Skills Development

• BRICS Network University & Universities League
  • 60+ universities collaborating in fields like ICT, energy, and economics.
  • Student exchanges, dual degrees, and joint research.
• Scholarships & Academic Mobility
  • ~4,700 African students in Russian universities (2023, up from 1,700 in 2020).
  • China–Africa Education Cooperation: 200 Ethiopian students joined Chinese universities in 2024 alone.
• Vocational Education in Africa
  • South Africa’s Three-Stream Model: Introduced 35 vocational subjects across 104 schools.
  • Goal: Reduce dropout rates and match labor market needs.
• UNESCO–BRICS Collaboration
  • Joint initiatives on inclusive digital education, teacher training, and AI in education launched between 2020–2025.

Conclusion : G7, G20 & BRICS Global Importance & Controversies

Global Importance Beyond Members

These intergovernmental forums don’t just benefit their member nations—they serve as catalysts for global development, advancing technology transfer, building flagship infrastructure, bolstering environmental resilience, and fostering inclusive growth worldwide.

Technology Transfer & Innovation Leadership

G7, G20, and BRICS have all become powerful engines of global technological progress—not just for their own members, but for emerging economies and low-income countries as well.

• G7 countries, with their advanced economies and R&D capabilities, have supported major technology partnerships in Africa and Asia, helping build capacity in sectors like renewable energy, digital finance, and health tech. For instance, through infrastructure and digital connectivity programs in Kenya and Nigeria, G7-backed efforts are powering local startups and AI-based educational solutions.
• G20 as a larger platform has coordinated global action on data infrastructure, pushing for universal internet access, digital payment systems, and financial inclusion tools that now serve hundreds of millions of people, particularly in the Global South.
• BRICS focuses on South–South cooperation, with joint research programs in nuclear energy, high-voltage grids, fuel cells, and even astronomy. Initiatives like the proposed BRICS Optical Transient Network—linking telescopes across continents—show how this group also advances scientific diplomacy and tech collaboration.

Iconic Infrastructure & Development Projects

These forums have played critical roles in building the hard infrastructure that drives modern economies—from energy and transport to water, digital access, and even cultural readiness for global events.

• The G7-led Partnership for Global Infrastructure and Investment (PGII) plans to mobilize $600 billion by 2027 for critical infrastructure worldwide. A major example is the support for clean energy corridors in Africa, including projects in South Africa and Egypt focused on solar, hydrogen, and transmission systems.
• G20’s coordination role helped pool multilateral funds for broadband infrastructure, allowing digital access projects in underserved regions. These investments laid the groundwork for smart cities, educational platforms, and global events infrastructure—making it easier for countries to host international summits, sports events, and festivals.
• BRICS’ New Development Bank has financed large-scale infrastructure like highways, metro lines, flood reconstruction, and urban sanitation in both member states and Africa. In 2024 alone, over $1 billion was directed toward rebuilding critical infrastructure after climate disasters.

Though not directly involved in organizing the Olympics or building stadiums, the infrastructure financed by these groups—such as transport links, smart utilities, and energy grids—has been essential to countries hosting such events, creating long-term national assets.

 Environmental Stewardship

All three groups have embraced the climate challenge as central to global stability and justice:

• G7’s climate agenda has set ambitious targets: tripling global renewable energy capacity by 2030 and massively expanding energy storage solutions. It also funds nature-based infrastructure and conservation projects worldwide.
• G20, while more diverse in its climate stance, has helped harmonize global climate finance mechanisms and encouraged energy transition packages for developing economies, including India’s and Indonesia’s shift from coal.
• BRICS nations have committed to green infrastructure: from Brazil’s urban greening and Russia’s tree-planting campaigns to China’s eco-cities and South Africa’s water catchment restoration efforts. These are not isolated environmental projects but part of integrated urban development models.

Global Mission, Beyond Borders

While each of these groups was formed to address specific internal needs—economic coordination, development finance, or diplomatic solidarity—they have evolved into platforms with global impact:

• They invest in non-member countries.
• They bridge digital and infrastructure gaps in Africa, Asia, and Latin America.
• They support technological and educational access through joint university programs, scholarships, and vocational training.
• They lead climate financing and promote energy security and innovation.

Whether it’s through African AI literacy, clean transit in Southeast Asia, or debt relief for fragile economies, these forums are working toward a more inclusive and sustainable global order—not as rivals, but as complementary forces.

G7 & G20 Controversies: Why Do Protests Happen against these Summits ?

Despite their central role in global governance, both G7 and G20 are frequently the focus of large-scale protests. These gatherings of world leaders are seen by critics as symbols of concentrated global power and inequality. Here’s why they generate controversy:

1. Elitism & Exclusion

• G7, especially, is viewed as a club of wealthy nations, making decisions that affect the entire world—without input from developing countries.
• Protesters argue that voices from the Global South are often ignored or marginalized, especially in discussions on trade, finance, and climate.

Example: During the 2001 Genoa G8 Summit (now G7), over 200,000 people protested, claiming the summit was undemocratic.

2. Critique of Neoliberal Economic Policies

• Both forums are seen as champions of global capitalism, promoting free trade, deregulation, and austerity.
• These policies, critics claim, widen the gap between rich and poor, weaken labor protections, and favor multinational corporations.

Anti-globalization movements, especially post-1999 (after the Seattle WTO protests), often target G20 for promoting these economic systems.

3. Environmental Greenwashing

• G7 and G20 leaders make strong climate promises but are accused of failing to act boldly or quickly enough.
• Many member states still subsidize fossil fuels or delay transitions to clean energy, leading to climate protests at nearly every summit.

In 2021 and 2022, Fridays for Future and Extinction Rebellion held G20-focused protests for failing to stop climate breakdown.

4. Corporate Influence & Global South Neglect

• Activists argue that G7 and G20 reflect the priorities of global corporations and advanced economies rather than the needs of developing countries.
• Infrastructure, tech, and trade policies are often seen as strategic or self-serving, not humanitarian.

5. Security Crackdowns & Militarization

• Summits are often accompanied by heavy police presence, surveillance, and restricted zones, which some view as undemocratic.
• Peaceful protests are sometimes met with force, feeding the narrative of authoritarian control over dissent.

6. Debt, IMF/World Bank Conditionality

• Many G20-backed policies align with IMF/World Bank frameworks that impose strict debt repayment and austerity conditions.
• Protesters argue this traps poorer countries in cycles of debt and underdevelopment.

Notable Protests in History:

• G8 Genoa Summit (2001) – Violent clashes, 1 death, hundreds injured.
• G20 Toronto (2010) – Mass arrests during economic justice protests.
• G20 Hamburg (2017) – Major street protests over climate, capitalism, and inequality.
• G7 France (2019) and G20 India (2023) – Climate activists and anti-globalization groups staged marches.

Final Words & Insight: G7, G20 & BRICS

While G7 and G20 summits aim to foster global cooperation, they’re also seen by critics as symbols of global inequality, exclusivity, and unchecked economic power. The protests reflect deeper frustrations with how the world is governed—and who gets a voice in shaping its future.

So, while BRICS has not drawn the same scale of public protest as G7 or G20, there are real and growing concerns—especially as it expands and takes on more global responsibility. As BRICS gains visibility and influence, we may see more scrutiny and activism in the years ahead.

A New Global Order: Why BRICS and G20 Were Inevitable

The global economic landscape has evolved dramatically over the past few decades. China and India are now among the top five economies in the world, and this shift has changed the balance of power that once sat almost entirely with the West. In this context, the G7 has become somewhat outdated, a group that no longer represents the full reality of today’s multipolar world.

The creation of G20 was not just relevant—it was essential. It brought major emerging economies into global decision-making and acknowledged that countries like India, Brazil, China, and South Africa are no longer peripheral—they’re central to solving global challenges.

BRICS: Redefining Global South Leadership

The formation of BRICS was another landmark moment. With Russia, China, India, and others building their own economic cooperation framework, the world saw the rise of Eastern and Global South-driven politics and economics.

Importantly, BRICS gave countries like Brazil, India, and South Africa a platform that had long been dominated by the West. It helped build trust among developing nations, offering an alternative vision of collaboration without conditionality, and economic cooperation rooted in mutual benefit rather than dominance.

G20 and BRICS: Platforms for Trust & Transformation

Where G7 continues to offer:

• Technology transfer
• Investment
• And advanced R&D partnerships,

G20 and BRICS bring something else entirely:

• A platform where developing and emerging nations have a seat at the table.
• South–South trust-building and respect.
• A more inclusive form of global governance that reflects the real diversity of global needs.

These forums show that economic and political trust can be built through dialogue, infrastructure cooperation, and regional development—not just through Western-led aid models or pressure.

BRICS: Countering Dominance, Not Creating It

With the rise of BRICS, the world has seen Russia, China, and India assert their political presence, challenging long-standing Western dominance, especially from the U.S. But more importantly, BRICS offers a vision where countries in Africa, Latin America, and Asia don’t just receive aid—they receive opportunity.

The best outcome for BRICS isn’t a rival power bloc. It’s a super-platform where underrepresented countries are heard, helped, and empowered.

The Future of G7, G20 & BRICS Summits : From Dominance to Dialogue

The future of these organizations shouldn’t be about cheap geopolitics or power plays. The real success will come when they:

• Foster economic justice
• Encourage infrastructure cooperation
• Promote fair trade and digital equity
• And most of all, build mutual political and economic trust

In the next decade, BRICS and G20 could be the bridge that finally connects the dreams of the developing world with the systems that were once used to exclude it.

So this is it regarding G7, G20 & BRICS summits. I hope you liked it. You can get UPSC Q & A regarding this in this PDF here.

Download UPSC Q & A Regarding G7, G20 & BRICS :

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