Formation of G7 G7 was formed in the early 1970s due to worsening global economic conditions, particularly the oil crisis of 1973. The finance ministers of USA, France, UK and West Germany initially met informally to discuss economic policies. Italy and Japan joined later on. These countries were ideologically similar and faced common challenges like recession.
Emergence of G20 "The Asian financial crisis in 1997 led to the establishment of G20." It included major economies from different regions such as China, India, Brazil, South Africa and Russia along with developed nations. The aim was to address interconnectedness among economies for stability by making action plans together.
Evolution and Purpose Initially focused on financial stability through meetings attended only by finance ministers; however after the global financial crisis in 2008 it expanded its scope involving presidents & prime ministers too.The main purpose is promoting international financial stability but over time it has addressed other issues like climate change & sustainable development goals (SDGs). Achieving consensus among member countries can be challenging due to differing foreign policies & priorities.