Gaps in global economic governance create vulnerabilities, RBW argues (June 2015)

Rethinking Bretton Woods | Fri, Jun 26, 2015

CoC contributes to report on global economic governance addressed to the upcoming China Presidency of the G20.

On June 26, 2015, the United Nations Development Programme (UNDP) in China released “Rebalancing Global Economic Governance: Opportunities for China and the G20 Beyond 2015.” The report was jointly published by UNDP, the China Center for International Economic Exchanges (CCIEE) and the Shanghai Institute for International Studies (SIIS).

Building on discussions and findings from the Second High-level Policy Forum on Global Governance in Beijing on 22 October 2014, the report analyses the challenges facing global economic governance today, and highlights the upcoming Sustainable Development Goals as the clearest expression of these challenges and the measures that are required to address them. It issues a call for the international community to rethink the institutional architecture that shapes global economic activity, to help the world’s nations meet the Goals.

RBW Project Director Aldo Caliari contributed an essay featured in the report, titled “Facing Global Economic Governance Gaps – The International Monetary and Sovereign Debt Restructuring Regimes.”

In his essay, he argues that both the international monetary and sovereign debt restructuring regimes represent gaps in global governance and offers some ideas on what G20 actions to address such gaps, under China’s Presidency, could look like.

Doing so would be justified both on economic and ethical grounds. The essay offers evidence on the channels by which such gaps exacerbate vulnerabilities of the global economy, and how they also represent obstacles to developing country broad-based participation and accountability in global economic governance. “The Group of 20 (G20) could well take action to address such gaps in global economic governance and that it will be justified to do so both on economic and ethical grounds,” Caliari said.

Download full report.