What Is the Group of 24 (G-24)?
The G-24 is a group of developing countries that was established in 1971. Its goal is to work together to coordinate the positions of developing countries on international monetary and development finance issues.
The G-24 countries also work together to ensure that their interests are adequately represented in negotiations on international monetary matters. The full formal title of the G-24 is the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development. More importantly, the G-24 is a chapter of the Group of 77 (G-77). The G-77 is the largest intergovernmental group of developing states in the United Nations (UN).
Key Takeaways
- The G-24 is a group of countries that work together to coordinate the positions of developing countries on international monetary and financial issues.
- G-24 membership is not strictly limited to 24 countries, and it actually had 28 full members as of December 2020.
- Although there are some exceptions, the G-24 as a whole contains many nations with excellent growth potential for investors.
- Despite the G-24 success during the first several decades of its existence, its members' fortunes diverged sharply to the point that the group made less sense in 2020.
Understanding the Group of 24 (G-24)
G-24 membership is not strictly limited to 24 countries, and any member of the G-77 can join discussions. The group actually had 28 full members as of December 2020. Furthermore, China has been a "special invitee" since 1981. The G-24's website listed its full members like Algeria, Argentina, Brazil, Colombia, Congo, Cote d'Ivoire, Ecuador, Egypt, Ethiopia, Gabon, Ghana, Guatemala, Haiti, India, Iran, Kenya, Lebanon, Mexico, Morocco, Nigeria, Pakistan, Peru, the Philippines, South Africa, Sri Lanka, Syria, Trinidad and Tobago, and Venezuela.
The G-24's initial objective was to evaluate the direction of international monetary policy from the point of view of developing countries. Furthermore, the group aimed to build coordinated positions for the G-77 at the United Nations Conference on Trade and Development and other conferences. Its mission later grew to include general development economics issues in 1976.
While the G-24 is not an organ of the International Monetary Fund (IMF), the IMF provides services for the G-24. Meetings of the G-24 are attended by heads of the World Bank Group, the IMF, and senior UN officials. The group meets two times per year.
Benefits of the Group of 24 (G-24)
The G-24 clearly had some success, as the overall economic development of its members increased considerably since it began in the 1970s. Although the G-24 is much less famous than the Group of Seven (G-7) developed countries, it acts as a sort of counterweight by coordinating and advocating developing countries' positions.
Although there are some exceptions, the G-24 as a whole contains many nations with excellent growth potential for investors. Furthermore, World Bank data shows that the stock market capitalization-to-GDP ratio in G-24 countries is generally lower than in the past and lower than developed countries. That suggests these stock markets are likely to outperform after 2020, despite their volatility.
Emerging market ETFs and frontier market ETFs are the easiest ways to invest in G-24 countries.
Criticism of the Group of 24 (G-24)
Despite the G-24's success during the first several decades of its existence, its members' fortunes diverged sharply to the point that the group made less sense in 2020. In particular, the two large economies of China and India advanced strongly, while several other developing countries lagged behind.
On the whole, the Group of 24 may have grown apart too much to continue sharing objectives. Many of the members in Africa, such as Kenya, made significant gains during the first two decades of the 21st century. On the other hand, Syria plunged into a civil war, and the value of Venezuela's currency dropped dramatically amid hyperinflation.
There are also vast differences between the members of the G-24 from the viewpoint of investors. China and India are both generally seen as hi-tech success stories that are likely to attract growth investors. Brazil, Mexico, and South Africa have economies that depend heavily on natural resources, which were out of favor in 2020, making them more appealing to value investors. Finally, there were a few members of the G-24, such as Iran, that most investors would want to avoid entirely even if there were no laws against investing in them.
FAQs
Group of Twenty-Four in British English
noun. a group of twenty-four rich and industrialized countries of the world, whose heads of government meet regularly to coordinate the position of developing countries on monetary and development issues. Abbreviation: G24.
What is G-24 grouping? ›
The Group of Twenty-Four (G24), originally a chapter of the G77, was established in 1971 to coordinate the positions of emerging markets and developing countries on international monetary and development finance issues and to ensure that their interests were adequately represented at the Bretton Woods Institutions, ...
What is the group of 24 IMF? ›
Ministers of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development held their one hundred and eleventh meeting in Washington, D.C. on April 16, 2024 with Ralph Recto, Secretary of Finance, Philippines, in the Chair; Leonardo Madcur, Alternate Executive Director at the ...
What are the G-24 countries? ›
The G24 is a grouping of some of the most influential developing country members of the World Bank and IMF. It includes G20 countries such as India, Argentina, Brazil, Mexico and South Africa, as well as low-income countries with less influence over the institutions.
What does cm g mean? ›
For instance, Cm/Eb means a C minor chord in first inversion, because it is asking you to play the Eb as the lowest note. Cm/G is a C minor chord in second inversion, because the G should be the lowest note. or second inversion.
What is the meaning of G 9? ›
G9 means "Good Night" So now you know - G9 means "Good Night". What does G9 mean? G9 is an acronym, abbreviation or slang word that is explained above where the G9 definition is given.
How many members are there in G-24? ›
Although the G-24 officially has 28 member countries, any member of the G-77 can join discussions. Although the group is not an organ of the International Monetary Fund, the IMF provides secretariat services for the Group.
When did the group of 24 come into existence? ›
The Group of 24 (G24), a chapter of the G-77, was established in 1971 to coordinate the positions of developing countries on international monetary and development finance issues and to ensure that their interests were adequately represented in negotiations on international monetary matters.
Is there a G10? ›
What is the G10? G10 stands for 'The Group of Ten', but is a group of the 11 leading industrial countries; namely: Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States.
What are the advantages and disadvantages of the IMF? ›
The IMF's advantages are that it is effective, adaptable and helpful in reducing negative economic impact. The IMF's disadvantages can be seen in the disproportionate representation of the US and its harsh lending conditions.
Benefits of Membership
Because member countries are known to be following the IMF code of conduct, membership encourages investment and trade, leading to fuller employment. The IMF also provides technical assistance and financial support when the member country needs it.
What are the criticisms of the IMF? ›
Criticisms of the IMF include. On giving loans to countries, the IMF make the loan conditional on the implementation of certain economic policies. These policies tend to involve: Reducing government borrowing – Higher taxes and lower spending.
Is the US a G10 country? ›
The member countries are Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States, with Switzerland playing a minor role.
What were the G-77 countries? ›
- Afghanistan.
- Algeria.
- Angola.
- Antigua and Barbuda.
- Argentina.
- Azerbaijan.
- Bahamas.
- Bahrain.
Group of Ten (IMF)
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| Membership | Belgium Canada France Germany Italy Japan Netherlands Sweden Switzerland United Kingdom United States |
The G7 includes Germany, Canada, the US, France, Italy, Japan and the United-Kingdom, and becomes the G8 when Russia is included. See Gstöhl (2007, pp. 1 and 4) for a discussion on the historical composition of these groups. The G10 is the sum of the G7 countries and Belgium, Netherlands, Sweden and Switzerland.
Which are G10 countries? ›
The member countries are Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States, with Switzerland playing a minor role.
What are the countries in the group of ten? ›
The ten prosperous industrial nations that agreed in 1962 to lend money to the International Monetary Fund (IMF). They are Belgium, Canada, France, Italy, Japan, The Netherlands, Sweden, Germany, UK, and the USA.
Where is the headquarters of the International Monetary Fund? ›
IMF Institute Training at Headquarters (HQ), Washington, D.C., United States.
