ABSTRACT
This chapter analyses the activities of the Group of Seven (G7) from the point of view of emerging markets and offers a critical perspective on the institution, arguing that in the future G7 decision making will have to be more inclusive of the views of certain large emerging markets. It examines the actions taken by the G7 since the late 1980s with regard to the international financial system, and how these actions have affected the developing world. The chapter explains the issues of macroeconomic co-ordination, debt renegotiation, and debt reduction. It also examines the achievements of the Cologne Summit, focusing on the report of the Finance Ministers and on what these achievements mean for emerging markets. The international financial system since the early 1980s has gone through a period of profound change, with developing countries and, in particular, the large emerging markets, playing a increasingly important role in that system.
