The Future of Capitalism The rise of the group of 20 advanced and emerging economies to a central position in global governance is an ultimately inevitable transformation. But the outbreak of a financial crisis in the world’s advanced countries greatly accelerated the transition. The latter have lost not just the prestige, but even the ability to steer the world economy. The result must be a rethink of informal global institutions, not least of the meetings of finance ministers and central bank governors of the group of seven leading high-income countries.
The rise of the G20 to eminence is irreversible. The debate now can only be over whether the body is too large to be effective, too small to be representative, or both. Yet, despite defects, it has proved workable. The G20 includes everybody who matters. Above all, its leaders recognise the need to co-operate.
