G7 (Group of Seven): “an organization of the world's seven largest so-called advanced economies and open societies. They are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.”
Even though China has an evolved economy, it is excluded because its wealth per person is relatively low. Russia on the other hand used to be part of G8 (Group of 8), but was removed in 2014 because of its takeover of Crimea.
This year European Union representatives along with leaders from India, South Korea and Australia were also invited.
The summit took place in Cornwall, United Kingdom.
Topics of discussion
Although most conversations happen behind closed doors, it is common knowledge that the basic topics discussed were the following:
COVID-19 recovery: Discussions included the ways to reinforce the medical sector for future pandemics. To be specific, G7 members can donate vaccines to low-income countries and even waive vaccine patents to maximize their availability.
Climate change: The leaders failed to draw the line to the burning coal crisis, but promised to minimize collective emissions by 2030. This caused the disappointment of climate change activists. The G7 countries produce almost a quarter of the world’s pollution.
Democracy: the leaders aimed to align their ideas to promote democracy and civil rights. US President Joe Biden commented that this was “evidence of the strength of the world’s democracies in tackling hard problems”.
The U.S. President urged the members of the Group to offer massive loans to developing nations to counter Beijing’s Belt-and-Road Initiative* and as a “democratic alternative” to China’s investment tactics.
Russia: The G7 countries decided to form a unified front to stand against Russia’s leader Vladimir Putin.
Corporate tax rate: The members of the summit decided to establish a minimum corporate tax rate of 15% to ensure the elimination of tax evasion by large companies like Facebook, Amazon, and Google. The tax rate does not however solve the problem of tax evasion* and tax havens*.
The G7 leaders welcomed President Biden and America’s return to international diplomacy after Trump’s presidency.
The Group of 7 cannot pass any laws due to the fact it is made up of separate nations. However, its decisions can have global and long-lasting effects.
Belt-and-Road Initiative: China's Belt and Road Initiative (BRI) is a strategy initiated by the People's Republic of China that seeks to connect Asia with Africa and Europe via land and maritime networks with the aim of improving regional integration, increasing trade and stimulating economic growth.
Tax evasion: Tax evasion is an illegal activity in which a person or entity deliberately avoids paying a true tax liability.
Tax haven: A tax haven is generally an offshore country that offers foreign individuals and businesses little or no tax liability in a politically and economically stable environment.