South Korea has become the first Asian country to hold the meeting of the world’s 20 major economies, which represent 85 percent of global output. South Korea hosting the next G20 meeting seems to mean a lot to South Korea itself and to other countries as well. Let’s have a look why G20 gathering is so important than any other forum or conference and what made South Korea become hosting country.
G20 became an upcoming power while emerging countries get economic influence among the global crisis. G20 first started from Minister of Finance’s meeting between IMF and the leading 20 countries members. The first meeting was held in December 1999 in Berlin, where Minister of Finance and the governor of central bank were presented. Through this meeting, G20 was expected to play an important role in global recovery by discussing global financial stability and drawing up the framework for corporations. The full scale of G20 summit was held initially as temporary meeting by the suggestion of France when the global crisis occurred. The first summit was held in November, 2008 in Washington and the second was in April 2009 in London, and the third in September Pittsburgh.
Why South Korea as a chair country?
Korea was an outstanding country to quickly overcome global crisis which was the greatest goal of G20. Korean economy fell down right after 1997 of Asia financial crisis but it recovered soon within the short period of time. Besides it also showed the fastest recovery from this Lehman Brothers emergency and OECD, IMF international society gave unstinted praise for overcoming the economic crisis. This may have influenced the G20 summit to be set up in Korea.
In addition, Korea has the leading position to go-between the emerging countries and the developed countries. Having experience of turning from the poorest country to one of the advanced countries within 50 years, Korea will be expected to perform as the part of mediator effectively. Therefore, G20 summit held in 2010 after all will raise South Korea’s role to higher status in the international community.
Peter Petri, professor at the Brandeis International Business School in Honolulu, Hawaii, said Korea should strengthen its leadership role in the region. He also said that “Korea is ideally positioned to assume a bridging role between advanced and developing worlds, as well as between Asia and the rest of the world. At the November G20 summit, it should represent interests and concerns of the entire region and strike a balance with those of the West.”
Korea gets what?
The significant role of being the host country of G20 Summit next year also turns out to be a great chance for Korea to improve its national prosperity. According to government data, up to 15,000 foreign delegates are expected to come and this will be a good chance to show improved image of South Korea. Not only the size and the economic benefit in tourism revenue but it means Korea stepping up to a new level. As such, South Korea will be taking influential part in coordinating the global exit plan. Therefore, G20 summit is expected to raise the country’s voice and profile in the international community.
New challenge for South Korea
But, there are still challenges remained when hosting G20 summit and playing a perfect role between advanced and developing economies in the forum. Different interests of the four superpower groups- the United States, Europe, new emerging powers and the rest of the world- will undoubtedly produce complications. Therefore, it is expected that Korea should be providing leadership which emphasizes horizontal, integrated, systemic approaches over the vertical features of the representatives.