More than seven decades after 1945, international multilateral organizations continue to represent the victors of World War II, not the economic powerhouses of the 21st century. But change is in the air.

The G20 is the premier forum for global economic governance. It accounts for two thirds of the world population, 85% of global GDP and 80% of international trade. As a result, it offers a comprehensive indicator for the health of the global economy. Nevertheless, in the past G20, like many other comparable groupings, has operated mainly under the interests of major advanced economies.

As the world will turn its eyes toward the G20 in Hangzhou, China will set a different tone. It is one that the developing world has despaired for since the postwar era; one that does not seek to threaten the existing multilateral organizations, but to complement them.

Cautious optimism

There is reason for cautious optimism.  While G20 heads of government, or heads of state, have periodically met since the fall of 2008, this is the first time that the G20 Summit will be hosted by the largest emerging economy in the world; one in which living standards on average remain far behind those in advanced economies.

The role of the living standards matters. People who are subject to similar life conditions tend to share similar needs, interests and goals, across national boundaries. Until recently, they have lacked a representative voice in most international multilateral organizations, including the International Monetary Fund (IMF), World Trade Organization (WTO) and World Bank. In the latter, advanced economies dominate financing, voting quota, leaders and thus effective policies.

Despite the sincere idealism of many in their work force, these organizations have not been truly international, but driven by the interests of, by and for major advanced economies.

Yet, a new, more multipolar world order has begun to emerge in the past few years, not least because the initiatives of China and other large emerging economies. One of the first signs was the creation of the BRICS New Development Bank (NDB), which was followed by the institution of the Asian Infrastructure Investment Bank (AIIB). In October, the Chinese renminbi (RMB) will join the IMF’s international currency reserves, perhaps paving way for Indian rupee sometime in the future.