Group Of Seven And Currency And Finance Cooperation: From Regional Coordination To Global Governance

With the further development of globalization, some power of the nation states is gradually dismissed and the international organizations play a greater role in international society. Group of Seven(G7), an important international organization among capitalism countries, develops series of regimes. Controlling 80% of global economic activities, G7 plays a role that no one can replace in global economy development and its strategy exerts a great influence on global economy.Taking currency and finance as a starting point, this paper discusses how G7 plays a role in world economy. This paper presents the cooperation of the group in finance in an all around way. It both elaborates the coordination of the group in currency rate, interest rate and multilateral surveillance in 1980s and what it did in 90s including the regime building in financial crisis prevention and assistance,financial surveillance and fighting against financial crime.Through the description of G7's cooperation in currency and fmance,the paper-explores the different roles of the group in different periods, pointing that G7 has developed from an organization mainly carrying out policy coordination between countries in the group to an important institution focusing on setting up international regimes to realize its global governance in the world.To some extent, G7 plays a role in global governance. However G7 faces a great challenge in global governance owing to the limitations of the regime and its inadequate legality. Though the problem has aroused some attentions and G7 also made some necessary but limited reforms, its dominant thinking—hegemony , domination but not equal coordination is still deep-rooted. Based on this, the paper makes a conclusion that G7 can't be the center of the global governance.