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Spain...should it be in the G8?

S

samsonyuen

Guest
Spain should push for G8 membership: thinktank
By Adrian Croft
Mon Dec 26, 7:39 PM ET

Spain should push to be a member of the Group of Eight (G8) club of leading economies now that its output has surpassed that of G8 member Canada, an influential Spanish thinktank said on Monday.

The Financial Studies Foundation presented a study setting out Spain's credentials to be part of the G8 at a meeting of its board, which includes some of Spain's top business executives.

Spanish Prime Minister Jose Luis Rodriguez Zapatero, the foundation's honorary chairman, also attended.

"The Financial Studies Foundation will support Spain's presence in the Group of Eight most industrialized countries...," the group said in a statement.

The World Bank's 2004 ranking of countries by Gross Domestic Product, released in July, showed Spain had overtaken Canada to become the world's eighth-biggest economy.

Spain's economy, in its 12th year of uninterrupted growth, produced just under $1 trillion of output in 2004, according to the World Bank figures. China's sharp upwards revision of its output last week still left Spain in the eighth slot.

The G8 includes the United States, Japan, Germany, Britain, France, Italy, Canada and Russia.

The study, directed by University of Navarre professor Luis Ravina, said Spain met the requirements to enter the G8 and that Spain's presence in international financial bodies should increase significantly, in line with its international weight.

"Access to the G8 and other groups of countries must be a constant demand of Spain," Ravina said.

However, he noted, "it's clear that clubs tend to want to have few members with rights."

OBSTACLES

The study points out that the main obstacle to Spain joining the G8 is that its membership would not make the group more representative at a world level.

Since four European Union members (Britain, France, Germany and Italy) already belong to the G8, the United States and Japan would oppose Spain, another EU member, joining, it said.

There was also the argument that the euro zone -- of which Spain, France, Germany and Italy are members -- should speak with a single voice, it said.

Short of individual membership, Spain's influence in international groupings should be increased through euro zone representation in such groups, the study said.

In his speech to the foundation, Zapatero did not say whether he supported Spanish membership of the G8.

But he noted that the emergence of new economic powers in the last 15 years had made the Group of Seven (the G8 without Russia) less relevant.

He said important new international groups were taking shape, such as the G20, which includes the G8 countries, leading developing nations such as China, India and Brazil, and the EU. The G20 accounts for nearly 90 percent of world output, he said.

"Spain must be an active member of the new world that is being created. Spain needs ideas and thoughts on the role we must play in the world and on the kind of institutions we need and want," Zapatero added.
 
I believe Canada saw this coming, and it was then Finance Minister Paul Martin who really led the founding of the G20 Group of Ministers.

As for Spain and it's standings on the financial markets, it doesn't really mean anything. However, if Russia was let into the club, even if it isn't much of a powerhouse I don't see why Spain shouldn't be allowed to join?

Louroz
 
I think we should let Spain join our little club. It's not as if they want to bring back the Inquisition or anything ...
 
A country that can build more than 200km of subway lines (as was done in Madrid) in eight years is certainly deserving of some recognition.
 
I know... let's add Spain, Brazil, China, India, Indonesia, etc. etc. to the G8. Then let's call it the G20. Oh, wait....
 
Spain, Korea, Australia, Sweden, Holland, Denmark should all be members.
 
It defeats the purpose of the G8 vis-a-vis the G20 to balloon its size.
 
Surprisingly, the Netherlands, Spain, Denmark and Sweden are not members of the G20: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States.
 
^ That's 19 countries - the EU is #20, so those countries are already represented.
 
This club used to be called the G7 until they let Russia join. I believe China and India get to send observers or representatives to the annual summits. Clearly, there is a need to expand the club's membership to reflect today's economic realities.
 
This club used to be called the G7 until they let Russia join. I believe China and India get to send observers or representatives to the annual summits. Clearly, there is a need to expand the club's membership to reflect today's economic realities.
Exclusive clubs aren't very exclusive when anybody can join.
 
From: business.timesonline.co.u...04,00.html

Economics
The Times&nbsp &nbsp &nbsp &nbsp March 03, 2006

Mexico and Indonesia 'will overtake British economy'
By Gabriel Rozenberg, Economics Reporter

MEXICO and Indonesia will both have bigger economies than the UK by 2050, according to a report out today which outlines the massive potential of the world’s emerging nations.
The report examines long-term demographic trends to suggest that countries such as Mexico, Indonesia, Brazil and Turkey all have young and fast-growing populations compared with the UK and continental Europe, putting them in line for significantly higher long-term growth rates.

India is forecast to have the fastest growth rate in its working-age population of any major economy in the next 50 years, while China is projected to become the world’s biggest economy in that time.

The report collectively identifies all these countries, together with Russia, as the “E7†group of emerging economies which it estimates will grow to become 75 per cent larger than the G7 group by 2050.

These seven countries hold between them nearly half the world’s population.

John Hawksworth, the head of macroeconomics for PricewaterhouseCoopers (PwC), who wrote the report, said that India had the potential be the fastest-growing economy in the world, overtaking China.

In US dollar terms, he forecast that India would grow by an average of 7.6 per cent a year between now and 2050, with Indonesia on 7.3 per cent and China at 6.3 per cent.

Mexico would see growth of 4.8 per cent a year, far ahead of the US on 2.4 per cent or the UK on just 1.9 per cent, his report predicted.

On a purchasing power parity measure, which adjusts GDP by the cost of living in each country, China will be 43 per cent larger than the US by 2050 and India will be the same size, PwC forecasts.

The fourth-biggest economy would be Brazil, followed by Japan, and then Indonesia and Mexico. Germany and the UK would drop to joint eighth place, down from third and fifth today.

However, Mr Hawksworth said that Britain should see being overtaken by these economies as an opportunity, and not a threat. He said: “UK companies need to factor these projections into their future planning to ensure they are best placed to take advantage of these opportunities.â€

With investment in education, Britain could successfully specialise to its advantage while enjoying the benefits of low-cost imports from emerging markets, he said.

Figures from the Office for National Statistics highlight the size of the opportunity for UK companies.

The figures show that the share of Britain’s exports going to the “E7†economies was just 5 per cent in 2004. This compared with about 44 per cent going to the other six G7 countries.

ONES TO WATCH

Mexico has 105 million people, falling state ownership of industry and free trade agreements with the US and the EU
Indonesia is the world’s fourth-largest country by population, with 242 million people. It has five times the land mass of Germany, spread over 18,000 islands
Turkey has 70 million people and is projected to have the fastest-growing working-age population of any large economy except India
 
^^^^The G20 is also not meant to just include the top 20 nations in GDP, but rather different regions. Hence:

The Americas:
Argentina, Brazil, Canada, Mexico, United States

Pacific Rim:
Australia, China, India, Indonesia, Japan, South Korea,

Europe:
France, Germany, Italy, Russia,

Middle East/Africa:
Saudi Arabia, South Africa, Turkey
 
It is inevitable that large population countries will overtake small in overall economic might (which might not be accurately measured by the PPP GNP number). My question is economic disparaty growing or shrinking in this world? Countries like India and China will certainly always be nations with enormous wealth stratification but what about us? Does globalisation spell the death of the egalitarian society, or did such a thing ever exist?
 

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