No bigger short-term challenge than Covid to keep G-7 focused and united

UK Prime Minister Boris Johnson is making final preparations for hosting this week's G-7 in Cornwall with world leaders from the United States, Canada, Germany, France, Italy, Japan.

While the club of powers may appear ill-suited to tackling the continuing international crisis from the Covid-19pandemic and its aftermath, it has always been at its best reacting to the big issues of the moment.

Indeed, the very fact that it was founded in 1975 in the aftermath of geopolitical and economic shocks when Washington pulled out of the Gold Standard underlines that it is fit for purpose for turbulent times like today. Back then, Richard Nixon had resigned as US president and there was imminent danger of currency wars. The G-7 stepped up to the plate, however, playing a key role in the management of the most important exchange rates. It also brought Japan into the Western policy-making community, and a similar far-sighted approach is needed today - hence one reason why India, South Korea and Australia have been invited to the event too.