Title: Reforms to the Global Governance Model in Times of Crisis
Abstract: The question that this article aims to respond to is whether the financial turmoil and the subsequent economic crisis have strengthened the cooperative approach of States and international organizations in their efforts to organize the global governance of the world economy. Some positive developments have been made. The upgrading of the G-20 to the "premier forum for international economic cooperation", replacing the more exclusive G-8, has created a more representative and balanced forum, which includes China, at the top of global economic governance. Moreover, the G-20 itself has managed to set in motion reforms of important international financial institutions, such as the International Monetary Fund and the World Bank. These reforms are aimed at giving more voting powers to the emerging economies. The same modernizing policy has resulted in the enlargement of the membership of the Financial Stability Board, which has been set up to govern the international financial markets together with the IMF, under the political guidance of the G-20. However, a lot still remains to be done. The main outstanding issue is the lack of coordination in working methods and the inconsistencies in the policies of the three main world economic organisations, i.e. the IMF, the World Bank and the WTO. More coherence and coordination must be achieved. Closer coordination should be achieved through the leadership of the G-20, but the United Nations – still the sole universal player with undisputed legitimacy – should also have a role to play. States excluded from the G-20 – the so called G-179 – should be encouraged in their efforts to work closely with the G-20 and their opinion should be taken into consideration in working out viable solutions for the failures of the world economy.
Publication Year: 2013
Publication Date: 2013-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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