Definition
The Group of 11 (G-11) refers to a forum, established in 1990, of developing countries aiming to ease their debt burden. Its members include Costa Rica, El Salvador, Honduras, Jamaica, Nicaragua, Panama, Dominican Republic, Sri Lanka, Pakistan, the Philippines, and Morocco. They came together to lobby for greater financial assistance and debt relief from developed nations and international financial institutions.
Phonetic
The phonetics of the keyword “Group of 11 (G-11)” is: /ɡruːp əv ɪˈlɛvən (dʒiː – ɪˈlɛvən)/
Key Takeaways
<ol><li>The Group of 11 (G-11) is a forum, consisting of developing countries that aim at coordinating their positions on international monetary and development finance issues. They also aim to enhance their collective bargaining power in international fora.</li><li>The G-11 was established in 1996 and originally included developing countries with the largest economies. The current members are Bangladesh, Brazil, Egypt, India, Indonesia, Mexico, Nigeria, Pakistan, the People’s Republic of China, Turkey, and South Africa.</li><li>The G-11 countries are characterized by a great diversity in terms of their economic development. Members span several categories including newly industrialized economies, emerging markets, and developing countries. Despite the disparities, these countries have a shared interest in advancing economic growth and stability.</li></ol>
Importance
The Group of Eleven (G-11) is a forum, made up of developing countries, that aims to ease their debt burden, enhance their market access, and boost their economic growth. The G-11 includes countries like Jordan, Ecuador, and Indonesia among others. This group is important in the world of business and finance due to their collective bargaining power. They strive to negotiate better terms for debt repayment and more favorable trade agreements. The economic policies they adopt can potentially shape the global economic landscape, making their decisions impactful to international business and finance.
Explanation
The Group of 11 (G-11) is an informal forum of developing countries that aims to ease their debt burden. It was established as a response to multiple major economic crises that have threatened the financial stability and economic progression of these countries. The G-11 deals with many issues including those related to debts, trade, and investment policies. The countries included in the Group of 11 are Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, India, Jamaica, Nicaragua, Pakistan, Sri Lanka, and Venezuela. The main purpose of the G-11 is to provide a platform where these nations can collectively participate in negotiations and discussions to secure financial stability and sustainable economic growth.The Group of 11 fulfills its purpose by acting as a collective voice in many global economic forums, particularly those that focus on international trade and finance. Since the members of the G-11 have similar economic conditions, the challenges they face are likewise often similar. Through the G-11, these nations actively work together to develop common views on global economic issues. This collaboration helps them to efficiently push for arrangements and reforms that are beneficial and fair to them, making the forum a significant instrument that facilitates and furthers the interests of its member countries on the global economic stage.
Examples
1. Pakistan’s Economy: Pakistan, a member of the G-11, faced a balance of payment crisis in 2018, where they sought help from International Monetary Fund (IMF) as well as some of the other countries from G-11 in the form of bilateral loans and trade deals to stabilize their economy.2. Indonesian Financial Crisis: In 1998, Indonesia, a G-11 member, faced an economic crisis during which they received assistance from fellow G-11 countries and international bodies. This kind of mutual financial support is one of the key objectives behind formation of such groups. 3. Economic Trade Agreements: The G-11 has also called for greater market access for their products in the developed world’s markets. For instance, several members of the G-11, including Jamaica and Egypt, have negotiated individual trade agreements with the US that allow for greater market access for their goods and services. Balanced trade relationships like these benefit both parties involved, as shared economic success can lead to shared economic stability.
Frequently Asked Questions(FAQ)
What is the Group of 11 (G-11)?
The Group of 11 (G-11) is a forum, set up by developing countries in 1997, to coordinate their positions and strategies on international monetary and development finance issues and to enhance their role in decision-making in these areas.
Who are the members of the G-11?
The G-11 group consists of countries like Bangladesh, Egypt, Jamaica, Indonesia, Mexico, Nigeria, Pakistan, Peru, the Philippines, Turkey, and Venezuela.
What is the purpose of the G-11?
The purpose of the G-11 is to increase the voice and participation of developing countries in international financial discussions and to promote economic cooperation between these countries.
When was the G-11 established?
The G-11 was established in September 1997.
How does the G-11 work?
The G-11 works by meeting regularly to discuss crucial international economic and financial issues, especially those involving the International Monetary Fund, the World Bank, and the World Trade Organization.
What issues does the G-11 focus on?
The G-11 focuses primarily on issues related to international finance, development financing, and economic cooperation.
Do G-11 members represent all developing countries?
While the G-11 members are from various developing regions of the world, they do not represent all developing countries. However, their discussions and positions do tend to reflect broader concerns within the developing world.
Does the G-11 have any power to enforce decisions?
No, the G-11 operates as a discussion and coordination forum rather than as a decision-making body. It acts to influence debates rather than to implement specific policies.
How does G-11 differ from G-7 or G-20?
The G-11 is a platform for developing countries, while the G-7 and G-20 are groupings of the largest economies in the world. The G-11 seeks to influence international monetary policy and development finance, whereas the G-7 and G-20 focus on a wider range of global issues, including finance, security, and trade.
Related Finance Terms
- International Monetary Fund (IMF): An organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty. The G-11 is a group within this organization.
- World Bank Group: An international financial institution that provides loans and grants to the governments of low and middle income countries for the purpose of pursuing capital projects. The G-11 countries are all members.
- Emerging Economies: The economies of G-11 countries – most of which are developing or recently developed. This term refers to an economy that is in the process of becoming a more developed, often driven by rapid growth and industrialization.
- Financial Crisis: A situation in which the value of financial institutions or assets drops rapidly. The G-11 was created, in part, to manage the world’s response to the 1999 financial crisis.
- Debt Relief: The partial or total remission of debts, especially those owed by developing countries to external creditors. One key aspect of G-11’s cooperation is to address debt problems that pose macroeconomic challenges.
