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In the year 1999, a forum called Group of Twenty (G-20) was established, aiming to discuss about the important issues regarding the global economy. In this group, the finance minister and central bank governors these twenty industrialized or developing countries opens up discussion about topics, such as the markets within the country and things relating to the global economic stability. The first meeting, or the inaugural meeting was held on December 15th and 16th, 1999 in Berlin, hosted by Germany and Canadian minister.
Initially, it was created as a responsive action to the global crisis that happened in the late 1990s. Since then, there have been agreements made regarding policies for growth, reducing abuse of the financial system, dealing with transparency of fiscal policies, financial crises and combating terrorists financing. Moreover, in 2004, the G-20 has decided a higher standard to fight issues such as money laundering and tax matters. By these actions decided by the G-20, they have helped to give more support for further financial development and growth, not only for the 20 countries, but worldwide across the world.
Ranging from countries in Europe, Africa to Asia, these countries altogether control 90% of the total gross domestic product (GDP) of the world, 80% of the world trade and two thirds of the world’s population. By means of this evidence, it is proven that even though the G-20 only consists of 20 countries, they are the centre or majority of the world financial activities and population.
What is the Benefit for Indonesia and for the World?
Indonesia is a country known for the high terrorism activity, such as massive bombing or suicidal bombing. By the help of G-20, Indonesia is able to gain several benefits, such as the decreasing amount of financing for terrorism, which also means a decrease in the amount of terrorist activity. In addition, this country may benefit from the agreements made by the G-20, such as those related to transparency of fiscal, tax evasion and money laundering. The benefits for Indonesia could be felt in a direct impact, because all the problems that the G-20 are trying to resolve all happens in Indonesia. For example, money laundering was a very popular type of fraud a few years ago, but since the 2004, the amount of problems and issues has decreased drastically.
Not only for Indonesia, have the G-20 given plenty of benefit for the world, especially, towards the importance of economic growth for underdeveloped countries, like those in Africa and Asia. By having a forum like G-20, a more solid and firm financial structure can be created for the world, preventing it from falling during times like the financial crisis. Moreover, the agreements made by the members of the G-20 may also help to decrease scams, like money laundering, terrorism financing and tax evasion. As the amount of these problems decrease, each country is able to gain more from their tax and fiscal, allowing them to support their citizens in better ways.