Created as a response to the financial crisis of the late 1990s, the G-20 is facing yet another meltdown that threatens to plunge the West into a prolonged recession and slowdown growth in developing countries like India.
The G-20, established in 1999, reflects the diverse interests of the systemically significant industrial and emerging-market economies.
The grouping has emerged as an informal forum that promotes open and constructive discussion between industrial and emerging-market countries on key issues related to global economic stability.
US President George W Bush has called the summit of the grouping today that will bring together leaders from 20 of the world's biggest developed and developing economies, including India, to discuss ways to tackle the global financial crisis, including possible recession and massive job losses.
The members of the G-20 are the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States of America. The European Union is also a member.
To ensure global economic fora and institutions work together, the IMF and the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis.
Together, member countries represent around 90 per cent of global gross national product, 80 per cent of world trade as well as two-thirds of the world's population.
The G-20's economic weight and broad membership gives it a high degree of legitimacy and influence over the management of the global economy and financial system,
By contributing to the strengthening of the international financial architecture and providing opportunities for dialogue on national policies, international cooperation and international financial institutions, the G-20 helps to support growth and development across the globe, the official website of the grouping says.
The G-20 has progressed on a range of issues since 1999, including agreement about policies for growth, reducing abuse of the financial system, dealing with financial crises, and combating terrorist financing, it says.
It has also aimed to develop a common view among members on issues related to further development of the global economic and financial system. This includes providing political momentum for reform of, and strategic direction to, key international economic and financial institutions, like the IMF and World Bank.
Unlike international institutions such as the IMF or World Bank, the G-20 has no permanent staff of its own. The G-20 chair rotates between members, and is selected from a different regional grouping of countries each year.
This year, the G-20 chair is Brazil and in 2009 it will be the United Kingdom. The G-20 finance ministers and central bank governors meet once a year. The last meeting of ministers and governors was held in Sao Paulo, Brazil, on November 89.
