Group of 24 (G-24)

What Is the Group of 24 (G-24)?

The G-24 is a group of developing countries that was laid out in 1971. Its goal is to cooperate to arrange the places of developing countries on international monetary and development finance issues.

The G-24 countries additionally cooperate to guarantee that their interests are sufficiently addressed in negotiations on international monetary issues. The full proper title of the G-24 is the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development. All the more significantly, the G-24 is a chapter of the Group of 77 (G-77). The G-77 is the largest intergovernmental group of developing states in the United Nations (UN).

Understanding the Group of 24 (G-24)

G-24 membership isn't completely limited to 24 countries, and any member of the G-77 can join conversations. The group really had 28 full members as of December 2020. Besides, China has been a "extraordinary invitee" beginning around 1981. The G-24's website listed its full members like Algeria, Argentina, Brazil, Colombia, Congo, Cote d'Ivoire, Ecuador, Egypt, Ethiopia, Gabon, Ghana, Guatemala, Haiti, India, Iran, Kenya, Lebanon, Mexico, Morocco, Nigeria, Pakistan, Peru, the Philippines, South Africa, Sri Lanka, Syria, Trinidad and Tobago, and Venezuela.

The G-24's initial objective was to assess the course of international monetary policy according to the point of perspective on developing countries. Besides, the group meant to build composed positions for the G-77 at the United Nations Conference on Trade and Development and different conferences. Its mission later grew to incorporate general development economics issues in 1976.

While the G-24 isn't an organ of the International Monetary Fund (IMF), the IMF offers types of assistance for the G-24. Meetings of the G-24 are gone to by heads of the World Bank Group, the IMF, and senior UN authorities. The group meets two times each year.

Benefits of the Group of 24 (G-24)

The G-24 plainly had some achievement, as the overall economic development of its members increased significantly since it began during the 1970s. Although the G-24 is considerably less well known than the Group of Seven (G-7) developed countries, it acts as a kind of counterweight by coordinating and advocating developing countries' positions.

Although there are a few exemptions, the G-24 as a whole contains numerous nations with magnificent growth potential for investors. Moreover, World Bank data shows that the stock market capitalization-to-GDP ratio in G-24 countries is generally lower than in the past and lower than developed countries. That suggests these stock markets are probably going to outperform after 2020, regardless of their volatility.

Emerging market ETFs and frontier market ETFs are the least demanding ways of investing in G-24 countries.

Analysis of the Group of 24 (G-24)

Regardless of the G-24's prosperity during the initial several times of its presence, its members' fortunes diverged forcefully to the point that the group had less rhyme or reason in 2020. Specifically, the two large economies of China and India advanced strongly, while several other developing countries lagged behind.

On the whole, the Group of 24 might have grown separated too a lot to keep sharing objectives. A considerable lot of the members in Africa, like Kenya, made significant gains during the initial twenty years of the 21st century. Then again, Syria plunged into a civil war, and the value of Venezuela's currency dropped emphatically in the midst of hyperinflation.

There are likewise huge differences between the members of the G-24 from the viewpoint of investors. China and India are both generally seen as greetings tech examples of overcoming adversity that are probably going to draw in growth investors. Brazil, Mexico, and South Africa have economies that rely vigorously upon natural resources, which were undesirable in 2020, making them more appealing to value investors. At long last, there were a couple of members of the G-24, for example, Iran, that most investors would need to keep away from completely even assuming there were no laws against investing in them.

Highlights

• Regardless of the G-24 accomplishment during the initial several times of its presence, its members' fortunes diverged forcefully to the point that the group had less rhyme or reason in 2020.
• Although there are a few exemptions, the G-24 as a whole contains numerous nations with brilliant growth potential for investors.
• The G-24 is a group of countries that cooperate to facilitate the places of developing countries on international monetary and financial issues.
• G-24 membership isn't completely limited to 24 countries, and it really had 28 full members as of December 2020.