What is 'Group of Eight - G-8'

The Group of Eight (G8) is an assembly of highly developed and modernized nations that have established a position as leaders and pacesetters for the industrialized world.

BREAKING DOWN 'Group of Eight - G-8'

The Group of Eight (G8) is eight of the world's economically leading countries that in a cooperative effort meet periodically to address international economic and monetary issues. The origins of the group date back to 1975, when it was then known as the G6, with a membership consisting of the U.K., the U.S., France, West Germany, Italy, and Japan.

The nations that currently make up the G8 cohort are the United States, United Kingdom, Canada, Germany, Japan, Italy, and France.

G8 is considered global policy making at its highest level. The G8 includes the Group of Seven countries along with Russia. Russia, although not a full member, had been in attendance since 1994. However, Russia was suspended from the group in 2014 due to the annexation of Crimea. In 2017, Russia announced its intention to permanently withdraw from the G8. The group has sometimes been referred to as the G7 recently due to Russia technically being in nonmember status.

G8 nations see themselves as an elite and exclusive group, and indeed they do wield significant power, as their combined wealth and resources comprise roughly half of the entire global economy. The G8 is not an official, formal entity like the United Nations, and has no legislative or authoritative power. The G8 group can, however, compile recommended policies and plans that its members can work collaboratively to implement.

G8 issues and actions

Each year, the group hosts an event called the G8 Summit. Member nations take turns hosting the summit. In recent years, protestors have been a prominent part of these summits. The protests, which have in some cases turned violent, often center on complaints that the group excludes emerging and developing nations like India and Latin American countries that are playing an increasingly important role in the global marketplace.

Recent G8 cohorts have come together to discuss issues they have identified as being high priority and having an urgent impact on global security and stability. These critical issues include terrorism, cybersecurity, global warming, energy conservation, and economic development.

Leaders from the G8 nations, including presidents, prime ministers, cabinet members and economic advisors, assemble in this forum to exchange ideas, brainstorm solutions and discuss innovative strategies that will benefit each individual nation as well as the world as a whole.

RELATED TERMS
  1. Group of Five – G5

    Group of Five is a designation that has been used to refer to ...
  2. G7 Bond

    A G7 Bond is a government bond issued by a member nation of the ...
  3. Economic Network

    An economic network is a combination of individuals, groups or ...
  4. Group of 77

    The Group of 77 is the largest intergovernmental organization ...
  5. Organisation for Economic Co-operation ...

    The Organisation for Economic Co-operation and Development is ...
  6. Group Banking

    Group banking is a bank plan that generally provides incentives ...
Related Articles
  1. Insights

    Could Third World Debt Relief Pay Off?

    Debt is as much a political tool as an economic one. Discover if wholesale debt forgiveness is the answer for developing countries.
  2. Trading

    Fast Friends: Italy Helps Russia Avoid Sanctions

    Italy intervenes to prevent the EU from placing more sanctions on Russia.
  3. Financial Advisor

    South Asia: The New Face of Emerging Economies

    With a projected growth rate of above 7% in the region, South Asian economies are expected to form the next group of high-growth emerging nations.
  4. Insights

    Investing In Russia: A Risky Game?

    You might be better off playing roulette if you don't understand the risks of investing here.
  5. Investing

    Emerging Markets: The Parts of Russia's GDP

    Understanding the GDP composition of the world's most expansive country: Russia.
  6. Investing

    How Globalization Affects Developed Countries

    The increase in communications technology has companies competing in a global market.
  7. Investing

    The Top 6 Russian ETFs (RSX, ERUS)

    Six Russian ETFs offer broad exposure to that country’s publically-traded companies, with Market Vectors Russia ETF (RSX) presenting a superior choice.
  8. Investing

    From Russia With ETF Opportunity

    Russia's economy is emerging from a long recession. These ETFs could benefit.
  9. Investing

    Is Russia Really an "Ordinary Corrupt Petrostate"?

    Economist Paul Krugman made a number of claims about Russia's economic situation and Putin's responsibility for it Monday. We take a look at the numbers.
  10. Investing

    Sanctioned Russia Issues Second Eurobond (RSX, EEM)

    The deal is important because it raises funds for spending commitments and demonstrates access to capital despite U.S. and EU economic sanctions imposed on other parts of the Russian economy ...
RELATED FAQS
  1. Globalization and International Investment

    Learn how globalization impacts international investment and transforms economies around the world. Understand the implications ... Read Answer >>
  2. The Difference Between the International Monetary Fund and the World Bank

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ... Read Answer >>
  3. What are the nations with the lowest PPP (purchasing power parity) with respect to ...

    Learn how purchasing power parity (PPP) is used to compare the price of goods between countries, and which countries have ... Read Answer >>
  4. How does inflation affect the exchange rate between two nations?

    Countries attempt to balance interest rates and inflation, but the interrelationship between the two is complex and can influence ... Read Answer >>
Trading Center