By Zhao Minghao    Source: CCTV.com    Published: 2016-5-27

The G7 summit was held in Japan on May 26, while the G20 summit is scheduled for about a 100 days later in China`s Hangzhou.  World powers are facing huge pressures under a "new mediocre" global economy, and they wish to coordinate on respective macro-economic policies to avoid a dangerous drift.

The G7 known as an "elite club" has tried to control the global economy, politics and security issues. However, according to a survey by the International Monetary Fund (IMF) in October 2014, the GDP (gross domestic product) of the seven biggest emerging economies (China, Russia, Brazil, India, Mexico, Indonesia and Turkey) have exceeded that of the G7 members.

It is unwise to believe that international economic governance and sustainable development should rely only on a few Western countries. The G20 started in 1999, but didn`t get much attention until the global financial crisis had erupted in 2007-2008.

In Nov. 2008, the G20 summit was held in Washington to reform the international financial system. The G20 accounts for two thirds of the world`s population, the GDP has accounted for 90 percent of the total global GDP and its trade volume for 85% of the total world trade. G20 member countries do vary in economic levels, developing models, and cultural traditions. They have made progress to stabilize the global economy and to promote financial system reforms but they haven`t played prominent roles in global governance.

Developed countries, such as the United States, European nations and Japan want to continue their influence over global economic governance. They do not desire to share those fruits with the emerging markets. Now that the hardest spell of the financial crisis has passed away and the US economy is in a recovery, developed countries do not feel urgency to coordinate with emerging powers.

There are "small circles" coming out of the G20; for instance, MIKTA, a "medium power cooperation association" founded by Mexico, Indonesia, Turkey, South Korea and Australia.

Additionally, in Nov. 2010, The G20 summit in South Korea had passed reforms on decision-making influence for developing countries and emerging economies. US Congress had ratified the plan in Jan. 2015. China will host the G20 Hangzhou Summit in September to strengthen transnational cooperation to deal with global economic challenges.

This year`s G20 would focus on development. Chinese President Xi Jinping said the G20 should become the "stabilizer" of world economy and the propeller of global growth and global economic governance. Some international organizations have predicted that China would be the biggest contributor for the "G20 Comprehensive Growth Strategy."

The summit`s theme is "Toward an innovative, Invigorated, Interconnected and Inclusive World Economy." "Innovative growth" can launch a new-industrial revolution and digital economy. Structural reform can propel major economic powers to form a consensus.

Giving propriety to development in macroeconomic policy coordination creates an action plan for the United Nations Agenda for Sustainable Development in 2030.

Meanwhile, the growth rate of world trade in 2015 stood at 2 percent, the lowest in 50 years. Among all major economies, only the US had enjoyed stable economic recovery. Europe and Japan continue to face deflation and other problems, while the emerging economies are slowing down.

The international community is expected to pay fervent attention to the G20 Hangzhou Summit as a new start for the global economy.

The author is a visiting fellow at the Chongyang Institute for Financial Studies at Renmin University of China.