Subject category:
Economics, Politics and Business Environment
Published by:
IE Business School
Version: 8 June 2023
Length: 8 pages
Data source: Field research
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https://casecent.re/p/194873
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Abstract
The G7 is an informal bloc of seven advanced industrialised democracies - the US, Canada, France, Germany, Italy, Japan, and the UK - and the European Union as a non-enumerated member. Owing to its informality, the G7 has claimed a number of accomplishments. This practical case describes the decision-making processes and two concrete outcomes of the 2021 G7 Summit held in Cornwall, UK: the USD600 bn plan for a major global infrastructure program to counter China's Belt & Road initiative; and the agreement to overhaul the global corporate taxation rules and to back a global minimum corporate tax of at least 15%. The case is narrated from the perspective of an OECD Sherpa - an official in charge of all the preparation and agenda-setting of the event who accompanies a leader to the summit and ensures that its objectives are achieved through negotiation. The case allows a better understanding of the importance of agenda coordination at a major global governance forum like the G7 on two major topical issues: the feasibility of a significant infrastructure plan and its effect on the relations with a major emerging power like China and supporting a global minimum tax rate that could ensure vital additional revenue to governments.
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Abstract
The G7 is an informal bloc of seven advanced industrialised democracies - the US, Canada, France, Germany, Italy, Japan, and the UK - and the European Union as a non-enumerated member. Owing to its informality, the G7 has claimed a number of accomplishments. This practical case describes the decision-making processes and two concrete outcomes of the 2021 G7 Summit held in Cornwall, UK: the USD600 bn plan for a major global infrastructure program to counter China's Belt & Road initiative; and the agreement to overhaul the global corporate taxation rules and to back a global minimum corporate tax of at least 15%. The case is narrated from the perspective of an OECD Sherpa - an official in charge of all the preparation and agenda-setting of the event who accompanies a leader to the summit and ensures that its objectives are achieved through negotiation. The case allows a better understanding of the importance of agenda coordination at a major global governance forum like the G7 on two major topical issues: the feasibility of a significant infrastructure plan and its effect on the relations with a major emerging power like China and supporting a global minimum tax rate that could ensure vital additional revenue to governments.