V
Vijay Mehta
vijay@vmpeace.org
Contents
1.
Introduction
2.
Who rules the world?
3.
Present day global threats and challenges
4.
Strengths and weaknesses of world institutions
5.
Recommendations for an effective global governance in harnessing
globalisation
6.
Conclusion
Introduction
The creation of legitimate global institutions involves multiple goals:
First, the institutions must be representative. Second, the institutions
need to be effective. Third, collectively the international institutions
need to serve as an effective global governance system. Finally, the
international institutions should offer opportunities for national and
international leaders to forge coalitions for action and reform.
Globalisation involves a whole range of issues, from intellectual
property, trade, multinational corporations, how we manage the
environment, natural resources, oil, as well as the global financial
system. In a sense, globalisation is the sum total of all of those.
Many of today’s international institutions were created at the end of
World War II, more than 60 years ago. Since then they have responded in
many significant ways to the challenges arising during the second half
of the 20th century, including decolonisation, the end of the cold war,
global security, environmental threats, and global poverty. Even though
many new global and regional organisations were added since 1945 - when
the United Nations was created and the Bretton Woods organisations
opened their doors - very little has been altered in the basic structure
of these global institutions.
Global institutions are not working well individually and as a group.
For example, the global institutions at the core of the international
system, such as the United Nations, the International Monetary Fund, the
World Bank and the G8 Summit are, to varying degrees fragmented,
unrepresentative and ineffective, and generally suffer from an corrosive
decline in their legitimacy. They are increasingly fragile and unable to
address the global challenges of the 21st century.
Who rules the world?
The short answer is "no-one," if by "rules" one means "control". No
world government exists, and the United Nations, while many things, is
anything but united. In most circumstances, the organisation lacks both
the consensus as well as the capacity to impose its will on member
governments or others, be they terrorist organisations or drug cartels,
corporations or NGOs.
No one – even the most powerful country in today's world, the
United States – can run things alone. This is, in part, because of the
nature of the challenges in today's world. Terrorism, the spread of
nuclear materials and weapons, global climate change - all require
collective action.
Globalisation is not an option. It is a fact.
First, we live in an age of networks. States, individuals and companies
are more and more integrated. The challenges we face - economic
integration and migration, energy security and climate change,
humanitarian crises, failing states and terrorism - are interdependent.
The current turmoil in financial markets clearly shows how interlinked
the world has become.
A second key feature is that, in many ways, we live in a global village.
Information spreads in real-time. Geography is no obstacle to knowledge
anymore. Economic attitudes converge. The same mobile phones and fashion
brands are present from Brazil to Beirut.
Still, the challenge today is not stemming the tide of globalisation,
but making it work properly.
Present day global threats and challenges
We can define present day global threats and challenges as security,
environmental and economic threats which are:
-
Global, human and collective security
-
Terrorism
-
Weapons of mass destruction
-
Climate change
-
Rich-poor divide (globalisation)
-
Food, water shortages and natural disasters
-
Global financial crisis
All these need to be tackled for the maintenance of world security,
effective global governance and harnessing globalisation. We need all
types of security to develop the institutions to work for peace,
development and environment.
Managing globalisation and strengthening its rules is thus in everyone’s
vital interest. Globalisation is not a zero-sum game: there are massive
dividends to be gained from it, if it is harnessed properly and poorer
nations are not excluded from its benefits. According to a UN report,
over the last 40 years, the income of the world’s richest 20 nations has
tripled, whilst the income of the 20 poorest has barely changed. The
growing inequity needs to be addressed in order for globalisation to
work for the poor.
The upheaval of today’s financial markets is a stark warning that we
require a strong financial system to regulate our financial markets as
sound economic well-being is as important as security for the successful
implementation of ethical globalisation.
Globalisation has given us great opportunities. Businesses trade more
freely, people and goods travel more cheaply, millions of people have
been lifted out of poverty. Yet there is a dark side. Increased
competition can lead to the outsourcing of jobs. Technological change
enables the enemies of globalisation. Inequality breeds discontent.
Opening our economies, making globalisation fair and investing in people
is not sufficient. Globalisation cannot succeed without a stronger
dialogue of civilisations. A "clash of civilisations" is not inevitable.
But we must make sure it does not become a self-fulfilling prophecy. The
real threat is a clash of ignorance and intolerance.
Therefore, we need a vigorous but peaceful dialogue of civilisations.
This dialogue must have liberty, dignity and respect at its core. Both
the freedom of speech and the freedom of religion are universal and
non-negotiable. More fundamentally, violence is never a remedy for
perceived wrong. We should promote tolerance, human security and good
governance around the world.
Kofi Annan got it right when he noted that without respect for human
rights, there could neither be security
nor development. Obviously, one cannot simply export or impose freedom,
market economics or democratic institutions.
Helping the forces of moderation and modernity is vital to protect human
security. It is also critical for the functioning of globalisation as
such. Only stable stakeholders are responsible partners. There is no
open world without open societies. A key weapon against instability and
the "clash of ignorance" is education. Supporting open societies is
particularly important to fight another scourge of our times: Global
terrorism.
We are at present witnessing nuclear proliferation and tensions in
India, Pakistan and Iran. The recent escalation in the situation in Iran
could start another pre-emptive war. We are living at a time when the
constant threat of nuclear weapons and war hangs on us. How can the
United Nations and the international community send a powerful message
for abolishing nuclear weapons and establishing the rule of law?
Safeguarding global security and prosperity also means working for
reliable energy relations and sustainable development. This is critical
to avoid mortgaging future generations, but also to ensure a level
playing-field for globalisation today. Think about the impact of global
warming, price hikes on resources and environmental disasters, in
particular on developing economies.
Global and local environmental problems will move increasingly to the
fore as efforts are stepped up to address the problems of global
warming, pollution of the oceans, fresh water scarcity, and urban
congestion and so on. In the coming decades, the industrialising
countries will become a much bigger consumer of energy and account for a
significant and growing share of greenhouse gas emissions. Population
growth, economic expansion and climate change could expose as many as 3
billion people to water shortage problems by 2025.
In particular, we need to make sure that emerging economies are on board
too. By 2020, developing countries' emissions will surpass those of
developed countries. At the same time, it is the poorest that would
suffer most from the impact of global warming. That is why it is
important to integrate climate change into the development policy.
Already today, energy matters are a central feature of our relations
with producer and transit countries, from China to Central Asia, from
the Gulf to Western Africa. Energy security is inextricably linked with
the issue of climate change. There can't be any doubt that man's
activities are responsible for global warming. Last year's review by the
UK economist, Sir Nicholas Stern estimates its costs at 20% of global
GDP when extrapolating wider risks. At the same time the cost of action
to avoid the worst impacts can be limited to 1% of global GDP per year.
A good example is the EU which is at the forefront of combating climate
change. It has agreed to cut carbon-dioxide emissions by 20% and to
raise the share of renewable energy sources to 20%, both by the year
2020.
Also, Europe's system of emissions trading has blazed a trail in using
market forces to protect the environment. That is why various players,
including e.g. California, consider joining this system. The European
Union has been at the forefront of the EU European Trading Scheme (ETS)
and should be more widely adopted by other countries.
Strengths and
weaknesses of world institutions
Global governance system is composed of national governments,
international organisations such as the United Nations, nongovernmental
organisations, transnational corporations, and the international
currency exchanges. The mass media have created a "global theatre" that
is also inescapably a part of this system. There are also regional
intergovernmental organisations like the European Union (UN), NAFTA,
ASEAN, APEC, the African Union and MERCUSOR who are also part of global
governance system.
Global governance is therefore extensive and multilayered; extensive
because it can embrace pretty well any challenge facing the global
community. The peoples of the world are becoming interconnected and
interlinked and therefore mutually concerned. This can be climate
change, human rights; the environment, operation of financial markets,
or the health of national economies; it is a case of “what affects one
can affect all.”
A healthy form of global governance is that its implementation must
be by popular consent, and yet it must also be consented to and
implemented by nation-states. We need to understand that ideas and
values are now as important a tool as economic might, in the effort to
guarantee our security.
For example, there is a small self selected body that has become like
one institution, the G8 (France, United Kingdom, Germany, USA, Japan,
Italy Canada and Russia) initially concentrating on economic matters,
now in a sense representative of the world community, and yet playing a
powerful role in guiding the response to international challenges.
Another example is the European Union. Over the last 60 years, European
integration has been the successful answer to "regional
interdependence". Today, the EU is a truly global actor. It unites half
a billion people. It is the world's largest economic block, with a
quarter of global GDP. 56% of worldwide financial aid comes from Europe.
60,000 European peacekeepers serve from Congo to Kosovo, from
Afghanistan to Indonesia.
The Euro is the world's second currency. It has created the world's
largest market, which is not only a magnet for investors, but also
"globalises" European rules, from financial services to mobile phone
technology.
The EU is already the world's largest donor. Its goal is to raise aid to
0.7% of our Gross National Income by 2015, and to improve the links
between aid and other policies, such as trade, climate change and human
security.
A key step to strengthen the global economy is using the full potential
of the transatlantic marketplace which accounts for 60% of global GDP.
Together it covers 40% of world trade, with exchanges worth over €1.7
billion a day.
The remark of the China's Ambassador in Brussels recently demonstrates
the success of the EU project. He said: The EU is one of those things
which happen only every four or five hundred years." That is the
achievement on which others must build.
In a report by the Commission on Global Governance entitled, “Foundation
for Global Governance” the Commission is of the belief that the world is
now ready to accept a "global civic ethic" based on "a set of core
values that can unite people of all cultural, political, religious, or
philosophical backgrounds."
The report continues, "We believe that all humanity could uphold the
core values of respect for life, liberty, justice and equity, mutual
respect, caring, and integrity." Similarly, the United Nations, World
Bank and other international organisations, various regimes, coalitions
of interested nations and individual nations when they act globally to
address to various issues that emerge beyond national borders, such as
development, the environment, human rights, infectious diseases and
international terrorism are part of global governance.
However, the world institutions of today are slow to react and
bureaucratic. They are in need of radical reforms if they are to be more
effective and relevant to the present realities. The leaders and
governments of the world are pursuing relentlessly their own national
agenda to the detriment of the planet.
Clearly, our present system of global governance is very poorly equipped
to handle the challenges of the global agenda. And it is not hard to see
why "short-termism" prevails as our public and corporate leaders face an
average tenure of less than five years. National interest dominates to
the detriment of global interest in an antiquated system based on
national sovereignty. Existing institutions tend to be compartmentalised
with separate organisations for security, health, labour, environment
and trade and are thus ill-equipped to address the interrelated
challenges of the 21st century.
The G8, the UN Security Council and other institutions require new
approaches and structures to deal with the realities of the post-WWII
world in which developing economies wield more influence and power.
The end of the Cold War, the expansion of the European Union and the
rapid economic rise of developing countries such as
China,
India,
Brazil
and
Mexico
mean that the international organisations dealing with broad governance
issues no longer include important players.
Recommendations for
an effective global governance in harnessing globalisation
The way forward for global institutions is to tackle new security,
economic and climate change threats by promoting disarmament, human
rights, trade, building a global rule of law and order. It also includes
managing environmental degradation, emergencies and disasters, clash of
religion and culture, unrestrained tide of globalisation. The
implementation and completion of Millennium Development Goals (MDGs)
should be a top priority as gross inequities like poverty and lack of
opportunity are fertile grounds for violence and terrorism. The
recommendations are as follows:
Conclusion
We need governments and institutions which are transparent, democratic,
accountable and can work together with NGOs and civil society. With all
its weaknesses and need for reform, the UN is one of the best world
institution which has the clout, legitimacy and calibre to solve
problems effectively on a world stage. However, it should work in
cooperation with other international organisations and civil society, as
all of these are problems that no one institution or country can solve
on its own and which are the shared responsibility of humankind.
On a positive note, some of the successful examples of global governance
can be listed as the newly formed International Criminal Court, Kyoto
Protocol and MDGs where the governments of the world, NGOs and civil
society have worked together certain common codes of conduct under which
some of the challenges and threats including prosecution for crimes
against humanity, protecting the environment and helping the poor to
fight HIV, AIDs and poverty can be implemented globally. The Nuclear
non-Proliferation Treaty (NPT) has made major contributions to global
security and economic well being. It has been remarkably successful in
achieving its main goals and - with nearly 190 parties -has become the
most widely-adhered to arms control treaty in history. The NPT is an
indispensable tool in preventing the spread of nuclear weapons.
Let me throw a few questions on the current global governance issues
which are relevant today.
·
The deteriorating situation in
Iraq and
Afghanistan
·
Current tensions with nuclear proliferation issues with
Iran
·
Human rights abuses in
Darfur,
Burma
and
Tibet
·
How countries should act to mitigate climate change
·
How countries can tackle food, water shortages and natural disasters
·
How countries can deal with the global financial crisis
So who rules the world? Whoever has the strategic guidance, vision, and
leadership for institutional reforms creating a global governance system
and is able to achieve the focus, coherence and coordination required to
meet today’s challenges, reflecting the new economic and demographic
realities for responding to new challenges for creating a better future.
The role of UN and the goal of effective global governance is to promote
peace and disarmament, protection of human rights, environment, rule of
law, and development of the poorest regions of the world. If that can be
put into action by leaders and global institutions then we stand a fair
chance of harnessing globalisation and solving the huge problems of the
21st century.
Notes
The following publications were consulted during the writing of this
article:
Commission on Global Governance, ‘Foundation of
Global Governance.’
To view report go to
www.libertymatters.org/globalgovernance.htm
For figures on global military expenditure see Stockholm International
Peace Research Institute (SIPRI).
"Recent Trends in Military Expenditures"
2004. http://web.sipri.org/contents/milap/milex/mex_trends.html
OECD, ‘The future: what policy-makers have to think about,’ (OECD)
8 March 2006
V Mehta, Revitalising global governance and democracy. Athens, Greece
www.vmpeace.org
V. Mehta, ‘The Fortune Forum Code: For a Sustainable Future,’ 2006
Joseph E. Stiglitz, ‘Making Globalization Work’ (Carnegie Council),
October 5, 2006
BBC
News, ‘The case for global integration’, Richard N Hass, September 23,
2005
Brookings Institute, Reform of Global Governance: Priorities for Action,
March 9, 2008
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