G-7 @ Cornwall

Formed in 1975 in the aftermath of the collapse of the Bretton Woods Institution (sequential withdrawal of convertibility of gold into dollars) and the first oil shock (rising oil prices causing skyrocketing inflation), the G-7 (Group Of Seven) is an intergovernmental political and economical council comprising of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Initially, the G-7 was G-6, without Canada but then it was invited in 1976. Russia joined the G-7 in 1998, and the G-7 became G-8. It however was unbidden in 2014 after it attempted the annexation of Crimea, and the G-8 was once again G-7.

The G7 nations made it vividly clear they would advance the universal values of freedom, democracy, and the rule of law as a bulwark against the tyranny of China and Russia at their recent summit in Cornwall, South West England, from June 11 to 13.?

For the first time in the history of the G7 summit, the joint communiqué mentioned the circumstances of Taiwan, where tensions are rising due to threats from China. In unequivocal terms, the member nations said, “We underscore the importance of peace and stability across the Taiwan Strait, and encourage the peaceful resolution of cross-Strait issues.”?

They went on to call on China to “respect human rights and fundamental freedoms, especially concerning Xinjiang and those rights, freedoms and a high degree of autonomy for Hong Kong enshrined in the Sino-British Joint Declaration and the Basic Law.”

In specific reference to China’s aggressive behavior in the East and South China Seas, the G7 communiqué emphatically declared, “We remain seriously concerned about the situation in the East and South China Seas and strongly oppose any unilateral attempts to change the status quo and increase tensions. Also, big steps towards a unified taxation law to abolish tax havens, where corporates book their profits and pay taxes instead of paying taxes where they earned them. Several firms have benefited from this process. If they earn profits in the US they go and pay taxes in Ireland etc.?

The seven rich and industrialized groups of countries met in 2021 in Cornwall, UK with the high global expectation that the Washington Consensus (A set of ten economic policy recommendations for developing countries, and Latin America in particular, that became popular during 1980) would transform into the Cornwall Consensus. As this is the first meeting of the G-7 in the post-Trump era hopes are high.

The biggest aspiration today is that the G-7 work together on global urgent issues and resolve them as soon as possible such as climate change, the minimum corporate taxation, etc.

- Aindri Abhishek Singh.