G8 does not reflect the actual global balance of powers

The Group of Eight (G8) Industrialised Nations was established in the mid 1970s as a reaction to the global developments resulting from the increase in oil prices.

The same applies to the Paris-based International Energy Agency (IEA), which was set up to coordinate the interests of developed countries in the field of energy.

The formation of the group, which was initially made up of six countries, reflected the balance of power of countries with powerful economies.

Since then, radical changes to the nature of international economic relations took place and new super powers emerged, with even more influence than members of the G8.

In the early 1990s, Russia joined the Group known as G7 at the time, after Canada became a member of the group. The structure of G8 does not reflect the balance of economic forces on the global level in the 21st century.

During the latest G8 summit in Japan, French President Nicolas Sarkozy called for making China, India, Brazil and Mexico members of the group to make its decisions more effective and influential at a global level. Despite the importance of this suggestion, it was opposed by the US for political considerations, especially the lack of democracy and human rights violations in China, from an American point of view.

The G8 alone cannot tackle world issues in view of the absence of effective key powers, in addition to the countries suggested by Sarkozy. Among these countries are the GCC countries, which possess the world's largest oil stock.

The key recommendations made by the group in its latest summit stipulated for setting up an energy forum, solving the food crisis, cutting down gas emissions to curb global warming and its devastating effects on the environment. However, solving such issues is beyond the capability of G8 and requires effective contribution from other effective countries and blocs.

The rise in oil prices and energy supplies cannot be solved without coordination with GCC countries, which produce 18 million barrels of oil per day, which constitutes 20 per cent of the global output and is expected to increase to 25 per cent by 2015. GCC countries also possess half of the world's oil reserve.

The world's food problem cannot be solved without help from China, India and Brazil, which stepped up its production of bio-fuel, resulting in a shortage in food supplies in global markets and a rise in their prices.

Pollution and gas emission need collective efforts from all countries, especially developing countries with high growth rates, which led to an increase in their needs of hydrocarbon energy - the main cause of environmentally harmful gas emissions.

Thus, the structure of G8 does not reflect the balance of powers that may contribute effectively to solving global economic, food and environmental crises. Excluding other powers from the group does not encourage them to implement the group's recommendations.

Therefore, Sarkozy's proposal gains special significance because it mirrors the actual power balance at this stage. The influence of China, a non-member of the group, and its economic presence, cannot be compared to that of Canada, a group member.

Since the energy problem and the rise in oil prices topped the list of the group's concerns during the latest conference, it has become necessary that GCC countries become members of the group, especially that these countries increased their investment in oil extraction and their oil output to meet the growing demand in global markets.

The writer is a UAE economic expert.