Rethinking Global Economic and Social Governance

12/31/2009
Journal Articles
Development

Recent years have been characterized by growing frustration with globalization, reflecting unsatisfactory processes and outcomes in multiple areas. In the social area, disenchantment is the result of the uneven way the benefits of globalization have spread in developing and developed countries alike. In the economic area, high financial volatility and a broad regulatory deficit have resulted in a sequence of national and international financial crises, and most recently in a global financial crisis unprecedented since the Great Depression. In the environmental area, no effective action has been taken so far to face the unprecedented challenges posed by climate change and the massive destruction of biodiversity.

Author(s)

This paper presents a new typology of global cooperation for development, based on three objectives: managing interdependence, furthering the development of societies, and gradually overcoming the asymmetries that characterize the world economic system. It then explores the nature of these asymmetries and proposes that the concept of “special but differentiated responsibilities” offers the best framework for handing the special issues of developing countries in the global order. Finally, it develops a five point agenda for improving global economic and social governance structures: creating a dense network of world, regional and national institutions; ensuring the equitable participation of developing countries in global governance; creating a Global Council of the broad UN system, based on representation by constituencies; guaranteeing a better coherence of the decentralized system that characterizes global arrangements in the economic and social field; and effective accountability for international commitments.