What it means
The G-24 was created in 1971 during a period of major change in the international monetary system. Developing countries wanted a way to agree their positions before big discussions with the wealthier nations.
The group has 24 members drawn from Africa, Asia and Latin America and the Caribbean, with a balanced number from each region. Its work focuses on topics that matter to developing economies, such as access to emergency finance, how votes are shared at the IMF and the World Bank, the conditions attached to loans, and how to manage external debt.
Finance ministers and central bank governors from its members meet before the main international gatherings, usually twice a year. They issue a joint communique setting out their shared view.
The group has a modest structure, with a small secretariat that supports its research and coordination, and a chair that rotates between the regions. Its technical work draws on analysis prepared by experts and sometimes on the IMF's own studies.
Importantly, it is a negotiating and consultation platform, not a lender or a decision-making body. For businesses and investors, the G-24 is useful as an early signal of how emerging markets view global financial rules.
Positions taken by the group can shape debates about debt relief, lending terms and capital flow management, and these debates feed into the policies of the lenders that fund trade and infrastructure. A company with operations in developing markets can use these statements to understand the policy environment, and a lender can use them to gauge how governments may push back on tough loan terms.
The nuance is that the G-24 is far less powerful than the G-20 or G-7 in practice. It influences by argument and coordination, not by authority, and its members do not always agree with each other.
It is also distinct from the G-77, a larger group of developing countries at the United Nations.
In practice
Real-world examples.
Example
A finance minister from a mid-sized African economy joins the G-24 meeting before the IMF and World Bank spring meetings. The group agrees on a joint call for more flexible lending terms for countries hit by commodity price falls. The minister takes the shared position into talks with the IMF.
Example
An infrastructure investor planning projects in several emerging markets reads the G-24 communique on debt sustainability. The investor sees that many members want better debt restructuring tools and adjusts the risk assessment for sovereign guarantees. The deal terms include extra protection for currency swings.
Example
A development bank economist uses G-24 research papers when advising a client on the outlook for capital flows into emerging markets. She cites the group's concerns about sudden withdrawals of foreign money. The client builds a cash reserve to ride out such a shock, and it spreads its borrowing across two currencies so that one sudden move does not hurt the whole plan.
Case study
Seen in the real world.
Pelican Bay Infrastructure is an illustrative, fictional company that builds toll roads in developing countries. Its chief financial officer wanted to understand how emerging-market governments were thinking about debt and lending conditions.
She asked an analyst to review recent G-24 communiques and summarise the main themes. The analyst found repeated calls for greater flexibility on emergency loans and a stronger voice for developing countries in IMF decisions.
In the illustrative result, the company concluded that governments in its target markets would be pressing for easier terms and was cautious about assuming rapid changes in policy. It built both optimistic and cautious assumptions about government payments into the financial model, and the board used the range when approving a new project. The chief financial officer now reads each communique as part of her half-yearly risk review.
Watch out
Common mistakes.
- Confusing the G-24 with the G-20 or G-7, when it is a group of developing countries and not of the largest economies.
- Thinking the G-24 lends money or sets rules, when it is a coordination and advocacy forum.
- Mixing it up with the G-77 at the United Nations, which is a separate and much larger grouping.
Questions
People also ask.
When was the G-24 formed?
It was established in 1971, during a period of upheaval in the international monetary system, to help developing countries prepare common positions.
Who are its members?
They are developing countries from Africa, Asia and Latin America and the Caribbean, with an equal share from each region. Membership is by invitation of the group and is not a ranking of the countries' economic size.
Why does it matter to business?
Its statements show how emerging markets want global financial rules to change, which can affect lending conditions, debt policy and investment climates. A company planning long-term projects in those markets can treat the statements as a guide to the likely direction of policy.
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