Group of Five Groep van Vyf Grupo de los Cinco समूह-5 Grupo dos Cinco
Nations of the G5
Formation	2005
Membership	Group of Five  Brazil  China  India  Mexico  South Africa
Website	http://www.groupoffive.org/

The Group of Five (G5) encompasses five nations which have joined together for an active role in the rapidly evolving international order. Individually and as a group, the G5 nations work to promote dialogue and understanding between developing and developed countries. The G5 seek to find common solutions to global challenges.^[1] The G5 initially included the world's five leading economies: the United States of America, the United Kingdom, Japan, Germany and France. The G5 later evolved into the G8 with Italy, Canada and Russia being the additional three leading economies.

In the first decade of the 21st century, the world's leading economies came to be conventionally identified as the Group of Eight, and the term "G5" came to be used in a slightly different way than it had been used 25 year earlier. In the 21st century, the G5 were understood to be the five largest emerging economies, and these are:

•  Brazil^[2]
•  China^[2]
•  India^[2]
•  Mexico^[2]
•  South Africa^[2]

The G8 plus the five largest emerging economies has come to be known as G8+5.^[3]

History[link]

The Group of Five is a context-dependant shorthand term for a group of five nations. The composition of the five and what is encompassed by the term is construed differently in different time frames. Initially, the term "Group of Five" or "G5" encompassed the five leading economies of the world, but the use of the term changed over time. It came to be used to identify the next tier of nations whose economies had expanded so substantially as to be construed in the same category as the world's eight largest.

20th century G5[link]

The concept of a forum for the world's major industrialized democracies emerged following the 1973 oil crisis and subsequent global recession. In 1974 the United States created the informal Library Group, an unofficial gathering of senior financial officials from the United States, the United Kingdom, West Germany, Japan and France. These men were called the "Library group" because they met informally in the library of the White House in Washington, DC.^[4]

During the 1970s, the term "Group of Five" came to be identified the top five of the world's the leading economies as ranked by per capita GDP. Without the informal meetings of the G5 finance ministers, there would have been no subsequent meetings of G-5 leaders.^[5] In 1975, French President Valéry Giscard d'Estaing invited six heads of government from West Germany, Italy, Japan, the United Kingdom and the United States to an economic summit in Château de Rambouillet. At the time, it was impossible to predict whether this informal gathering would be meaningful or only a public relations event.^[6]

In subsequent years, the group of world leaders expanded to reflect changed economic and political developments:

• 1975 — the Group of Six (G6) evolved from the G5.^[7]
• 1976 — the Group of Seven (G7) was created when Canada joined the G6.^[7]
• 1997 — the Group of Eight (G8) was formed when Russia joined the G7.^[8]

21st century G5[link]

An innovation at the Gleneagles G8 summit in 2005 was an "outreach dialogue." The United Kingdom was host for the annual summit of G8 leaders; and the UK invited the leaders of Brazil, China, India, Mexico and South Africa to participate. The invitation caused the five countries to negotiate amongst themselves about presenting common positions.^[9]

The success of this collaboration led to the growth of the G5 as an independent voice. The G5 expresses common interests and viewpoints in the search of solutions to major global issues.^[9]

A number of cohesive elements bind the G5 together in promoting a constructive dialogue between developed and developing countries.^[9]

Structure and activities[link]

The G5 is an informal group for discussions involving an intentional community or an epistemic community.^[10] The G5 membership is marked by a range of attributes and factors, including

(a) a shared set of normative and principled beliefs, which provide a value-based rationale for the social action of community members;

(b) shared causal beliefs, which are derived from their analysis of practices leading or contributing to a central set of problems in their domain and which then serve as the basis for elucidating the multiple linkages between possible policy actions and desired outcomes;

(c) shared notions of validity — that is, intersubjective, internally defined criteria for weighing and validating knowledge in the domain of their expertise; and

(d) a common policy enterprise -- that is, a set of common practices associated with a set of problems to which their group competence is directed.^[10]By design, the G5 has avoided establishing an administrative structure like those of other international organizations, but a coordinator has been designated to help improve the G5's effectiveness.^[9]

See also[link]

• G8
• Group of Ten (economic)
• Group of 15
• G-20 major economies

Notes[link]

References[link]

• Bayne, Nicholas and Robert D. Putnam. (2000). Hanging in There: The G7 and G8 Summit in Maturity and Renewal. Aldershot, Hampshire, England: Ashgate Publishing. 10-ISBN 0-7546-1185-X; 13-ISBN 978-0-7546-1185-1; OCLC 43186692
• Reinalda, Bob and Bertjan Verbeek. (1998). Autonomous Policy Making by International Organizations. London: Routledge. 10-ISBN 0415164869/13-ISBN 9780415164863; 13-ISBN 978-0-203-45085-7;10-ISBN 0-203-45085-X; OCLC 39013643

Anil Kumar (born 1958) was a top senior partner and director at management consultancy McKinsey & Company, the co-founder of the Indian School of Business with Rajat Gupta, and the creator of two different kinds of outsourcing. He graduated from IIT Bombay in India, Imperial College in the UK, and The Wharton School in the US.

A “star senior partner,” in 2010 he pleaded guilty to insider trading in a dramatic “descent from the pinnacle of the business world.” ^[1][2]

Career[link]

Kumar was “one of McKinsey’s most senior employees [and] brightest stars,”^[3] where he pioneered the concepts of Knowledge Process Outsourcing and Business Process Outsourcing.^[4] He was a protégé of longtime former managing director (chief executive) Rajat Gupta,^[5][6] though following Gupta's retirement never ran in the elections for chief executive himself.^[7][8] Anticipating the rise of India and Silicon Valley, he co-founded (and later directed) McKinsey offices in Silicon Valley in the 1980s and in India in the 1990s. During the dot-com bubble he headed McKinsey's technology and Internet consulting operations, where he and Gupta created a program to allow the firm to accept stock in lieu of consulting fees.^[9][10] At McKinsey Kumar was also Chairman of the Knowledge Center and Chairman of the Asia Center.^[11][12] He was a director and corporate officer of the firm. He lived and worked from multiple offices in New Delhi, New York, and Silicon Valley, traveling over thirty thousand miles a month.^[13][14]

Kumar co-founded the Indian School of Business in 1997, today ranked among the top 15 business schools in the world by The Financial Times.^[15][16] He is a member of the Council on Foreign Relations and the Young Presidents' Organization, a founding charter member of TiE, and was the US chairman of India's largest business lobby, the Confederation of Indian Industry.^[17]

Criticism of Kumar centered around his close relationship with Gupta and a perception of arrogance. According to The Financial Times, “the two operated as a forceful double-act to secure business for McKinsey, win access in Washington and build a brotherhood of donors around the Hyderabad-based ISB and a handful of social initiatives.”^[18] Also, “as much as Mr Kumar was admired for his business ability and sharpness, he also drew fire for what was seen as his arrogance.”^[17]

Galleon case[link]

Kumar maintained an intentionally low profile outside McKinsey until an October 2009 arrest in conjunction with an ongoing and wide-ranging US governmental investigation into insider trading.^[19] Former mentor Rajat Gupta was later arrested by the FBI in a related case,^[20] prompting inquiries into McKinsey’s senior leadership and business model.^[21][22]

As of December 2009, Kumar was no longer at the consultancy.^[23] In January 2010 he pleaded guilty to insider trading charges^[24] and was the government’s star witness in March 2011 in U.S. v Rajaratnam against his billionaire friend and Galleon Group founder Raj Rajaratnam.^[25][26] In the sprawling case his involvement was unusual; according to a Reuters blog, “He’s the only informant who could be considered even more successful than Raj was, at least professionally if not in terms of raw cash. Raj had money, more money than he really knew what to do with, but Kumar had much more societal acceptance and prestige.”^[27] He settled with the SEC in May 2010 for $2.8 million, the amount after gains he received from Rajaratnam through a Swiss bank account in a domestic worker's name.^[28] Gupta, Rajaratnam, and Kumar were all close friends and had founded the $1.3-billion private equity firm New Silk Route together, though Rajaratnam and Kumar withdrew before the firm began operation.^[29]

Kumar was represented by the late Robert Morvillo,^[30] who had previously led billionaire Martha Stewart’s defense in her own insider trading case.^[31][32]

He also testified in the May 2012 criminal trial of Rajat Gupta.^[33][34]

International media, business, and finance industry observers have analyzed extensively his actions in aiding Rajaratnam.^{[1][35][36][37]} Consensus remains divided on the precise motivators of money, respect, and relationship, with The New York Times asking, “Why would people who seem to have it all — wealth, prestige, powerful jobs and infinite access to others with the same — risk that, and more, to provide inside information to the Sri Lankan-born billionaire?”^[38] Rajaratnam's annual payments were estimated at less than 5% of Kumar's annual income (and just 1-2% excluding a one-time bonus), further raising the question of motivation.^[39]

Personal life[link]

Kumar attended high school at The Doon School. He maintained an intentionally low external profile, traveling over thirty thousand miles a month.^[13][14] He lived and worked for decades in New Delhi, New York, and Silicon Valley simultaneously. He had a Manhattan apartment in the Time Warner Center and a house in Saratoga, California.^[14]

See also[link]

• McKinsey & Company, Inc. — in particular Notable employees and Galleon case
• Galleon insider trading case — in particular relationship with Rajaratnam and Gupta
• Indian School of Business — in particular history and formation
• New Silk Route — in particular history and formation
• Rajat Gupta — in particular relationship with Kumar
• Raj Rajaratnam — in particular conviction
• SEC v. Rajaratnam — also U.S. v. Rajaratnam

References[link]

Further reading[link]

• Sharma, Amol and Joann Lublin. “A Star Partner's Galleon Arrest Shakes Up Ranks at McKinsey”. The Wall Street Journal. October 21, 2009.
• McDonald, Duff. “Galleon Scandal's Executive Conundrum”. CNN. October 23, 2009.
• McDonald, Duff. “Rajat Gupta: Touched By Scandal”. CNN. October 1, 2010.
• Duray, Dan. “Dealbook London Correspondent Scores Deal for Crisis Book”. The New York Observer. December 3, 2010.
• Lamont, James and Tom Burgis. “Elite Take Sides As Gupta Fights SEC Charges”. The Financial Times. March 8, 2011.
• Lattman, Peter. “On Tape, Galleon Founder Told of Possible Goldman Deals”. The New York Times. March 15, 2011.
• Lattman, Peter. “Rajat Gupta Charged with Insider Trading”. The New York Times. March 1, 2011.
• McCool, Grant and Dena Aubin. “McKinsey In Uncomfortable Rajaratnam Trial Glare”. Reuters. March 30, 2011.
• Rothfeld, Michael and Susan Pulliam. “Defense in Galleon Trial Bids to Discredit U.S.'s Star Witness”. The Wall Street Journal. March 16, 2011
• “Rajaratnam Lawyer, Key Witness Do Battle At Insider-Trading Trial”. Financial Alternatives. March 16, 2011.
• Raghavan, Anita. “Expert View On Galleon Insider Trading Trial”. NDTV. March 18, 2011.
• Van Voris, Bob, David Glovin and Patricia Hurtado. “Rajaratnam Lawyer Challenges Kumar’s Testimony on Insider Tips, Payments”. Bloomberg. Mar 16, 2011.

External links[link]

• McKinsey & Company, Inc.
• The Indian School of Business