ABSTRACT
This chapter reviews developing country issues and factors in the role of the G8 and of global governance more generally. It begins first with developing countries in the global trading system and the key policy challenges that arise. The G8 itself instituted a new process for dialogue with a G5 of leading developing countries. The good news is that developing countries are integrating faster, wider and deeper into the global economy. They account for rising shares of international trade and foreign direct investment (FDI). Global action to combat climate change was at the top of the priority list for the German G8 presidency. As with foreign aid, the G8 seems to have jumped onto a climate-change bandwagon powered by rock-star economics, biased expert analysis and dubious policy advice. In all developed countries, and in most developing countries, national governments, not intergovernmental organizations, non-governmental organizations (NGOs) or multinational corporations, provide core functions of law and public policy.
