The Group of Seven and the Group of Eight

The members of the Group of Seven (G-7) are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, which together account for about two-thirds of the world's economic output.

The leaders of these largest industrialized democracies have met annually since 1975 to discuss major economic and political issues. The participants at the first meeting in Rambouillet, France in November 1975 were France, West Germany, Italy, Japan, the United Kingdom and the United States. Canada joined at the 1976 Dorado Beach, Puerto Rico Summit what came to be known as the G-7. Ever since, the site of the yearly Summit of the leaders has rotated among the seven countries. Since 1977, the President of the European Commission has also been represented at the Summit table.

The Group of Eight (G-8) comprises the G-7 nations plus Russia. Russia began to participate in a portion of the meetings at the 1994 G-7 Summit in Naples. Russia officially became the eighth member at the 1997 Denver, Colorado, "Summit of the Eight." While Russia is a G-8 member, it does not participate in financial and economic discussions, which continue to be conducted by the G-7. Russia has the G-8's smallest economy. (The Size of the G-8 Economies)

G-7 Finance Ministers meet four times a year to review developments in their economies and the world economy and to develop common approaches on international economic and financial policy issues.

The G-7 Central Bank Governors join the Finance Ministers at three of these meetings. The three are the first meeting of the year, held in January or February, then the gatherings just before both International Monetary Fund(IMF)/World Bank meetings, which are usually in April and in September. At the conclusion of these meetings, the G-7 ministers usually issue a statement on economic conditions and policies. On rare occasions, the finance ministers hold additional unscheduled consultations during the year and issue statements on specific economic issues.

The G-7 Finance Ministers also meet shortly before the G-8 Summit to discuss issues that will be taken up at the Summit. At the conclusion of this meeting, the G-7 Ministers typically release reports to the leaders on subjects that are on the Summit's agenda.

With the launching of the euro, the common currency of G-7 members France, Germany and Italy, and nine other countries, the presidents of the European Central Bank and the Euro-Group, representing the finance ministers of the 12 euro countries, have participated in certain portions the meetings of the G-7 Finance Ministers and Central Bank Governors.

Separately, other G-8 ministers, such as those dealing with labor and environmental issues, meet to discuss common approaches to global issues.

Evolution of the Summit Process

Since the annual Summits began in 1975, they have served as a forum for the heads of state or government of the leading democracies to seek consensus on ways to address the major economic and political issues facing their nations and the international community.

Issues that appear on the agenda at one Summit may be raised again at subsequent Summits as the leaders work to develop and implement strategies for reforms and to respond to economic and political concerns. By setting priorities, forging common policies and establishing patterns of cooperation on transnational issues, the Summit leaders also seek to influence other industrialized countries, the larger international community and global institutions such as the International Monetary Fund, the World Bank and the United Nations.

When the Summits began in 1975, the main focus was economic and financial issues -- macroeconomic management, international trade, international financial institutions and relations with developing countries. From this initial foundation, the Summit's economic agenda has expanded considerably to include microeconomic issues ranging from employment to electronic commerce.

While the early Summits issued some statements on political issues, this focus has become much broader. The group's foreign ministers, like the finance ministers, meet prior to the Summit and issue statements and reports covering issues that range from terrorism to financial crime, nuclear safety and security, non-proliferation, human rights, arms control and regional security. Bilateral meetings among the different leaders are also an important feature of the Summit gatherings.

Neither the G-7 nor the G-8 has a permanent staff or budget. The government of the country that is hosting the Summit in a given year also provides facilities for other G-7 and G-8 meetings during that year.