The first G20 Summit was held in 2008 in Washington DC (USA). It set the scene for the most dramatic reform of global finance in over 60 years. At the follow-up summit in 2009 in London (UK), the G20 agreed to blacklist states that refused to cooperate on efforts to tackle tax evasion and avoidance. In the wake of the 2008 financial crisis, the G20 resolved to impose stricter controls on hedge funds and rating agencies. Institutional reforms included the expansion of the Financial Stability Forum (FSF) to make it an effective supervisory and watchdog body for the global financial system. It was renamed the Financial Stability Board (FSB). The G20 is credited with helping avert a shift to protectionism in the aftermath of the 2008 financial crisis. It also helped mobilize consensus for tripling the International Monetary Fund’s budget and for expanding the mandate and lending remit of multilateral development banks. In 2008, in Washington DC, the G20 had agreed to refrain from imposing new barriers to trade and investment for 12 months. This provision has been extended at every subsequent summit. The G20 Summit in Pittsburgh (USA) in 2009 established the G20 as a major decision-making body on matters relating to the global economy. This summit decided on stricter regulations for the banking sector, requiring banks to retain a greater proportion of their profits to build capital. These measures helped reduce the financial risk to governments and taxpayers posed by high-risk private sector activities.
