Over the
past few decades, regional institutions have become more common. The European
Union is proving to be a solid governance model with the African Union and the
Union of South American Nations taking shape close behind. The South Americans
have formed BancoSur, their alternative to the IMF. Regional trade pacts are
flourishing in an alphabet soup of NAFTA, ASEAN, APEC, Mecrosur, and SAARC. The
Shanghai Cooperation Organization (SCO), led by China and Russia, is a serious
alternative to the US security blanket in Central Asia.
Some may
praise new regional institutions as a positive step in cooperation. However,
the world should equally be cautious of the changing norms. Regional
institutions may encourage cooperation among members, but they may concurrently
increase competition across institutions or regions. The SCO's denial of the US's
request to join as an observer is an example of regional separation instead of
global cooperation. Many of the bilateral trade agreements act in the same way.
Taken to an extreme, these regional institutions undermine wider global
institutions.
Simultaneously,
nation-states no longer have a monopoly on violence. From the attacks on the
Twin Towers in New York City to the small, yet painful bombings in cafes and
buses of Kunming, a quiet city in Southwestern China, terrorism is threatening
the physical and psychological safety of citizens regardless of national
borders or ideology. Financial and political poverty is turning the desperate
to strengthen nonstate actors. Moreover, these nonstate actors are waging a war
of ideas questioning not only the supposed success of the values promoted by
liberal states and their institutions, but also their validity in establishing
a peaceful and accommodating world. Non-state actors are threatening not only
the stability of nation-states, but also the legitimacy of international
organizations.
The
international order is heading towards either multipolarity, where many states
dominate decision-making, or, as noted by Haas of the Council on Foreign
Relations, a state of non-polarity, where power is diffused among numerous
state and non-state actors. In any case, global governance following the
current trend will be chaotic, if not outright anarchic. To manage the coming
challenges, the world must strengthen its only global governance
organization-The United Nations.
To
strengthen the UN requires leadership from the UN Security Council,
particularly the US. While the US's power is declining, it still yields the
greatest influence on the international arena. The US must take advantage of
this shrinking window of opportunity to strengthen the UN, by transferring the role
of the global sheriff to the UN, and, together with the other permanent members
of the Security Council, establish and conform to a genuine check and balance
governance system. The UN Parliamentary Assembly is one of the many proposed
system. The world does not have a lack of proposals, but rather, a lack of
leadership.
Beyond the
UN, the international community must reform itself financially. Aside from
broader capital regulation that will come after the current global financial
crisis, the world community should move to a supranational reserve currency,
weaning off its dependence on US dollar reserves. The dependence on US dollar
reserves overexposes other economies to the US economy. Such a reserve was
trumpeted first by Keynes and most recently by Nobel-laureate Joseph E. Stiglitz.
Not only does such a supranational reserve
system help with long-term balance of payment challenges, a source of
instability in itself, it forces even tighter cooperation due to increased
interdependence. By allowing more voices to participate in the governing
process and by providing a checks and balances system, the international
institutions will be more legitimate.
The various
new regional blocs are not acting in purposeful defiance of the UN. Rather,
they offer a sobering signal that institutions, where governance is fair, are
preferred to anarchy. The leaders of the global governance system, particularly
the US, must recognize this signal and take advantage of the current
opportunity. Coordination will be more difficult, if not impossible, when power
is even more evenly distributed. This is a time when members of the UN Security
Council can assume true leadership and provide the platform for long-term
stability.
Yam Ki Chan is a Masters student at Columbia University's School of International and Public Affairs. He received his BA in Economics from Carleton College
This article has been shortlisted for the Atlantic Community's "Global Governance in 2020" student competition.
The Atlantic Community's World Economic Forum Focus Week (Jan 22 - Jan 28)
This article is part of the Atlantic Community's World Economic
Forum Focus Week in a 5 day run-up to the WEF Davos Conference
(conference begins Wed 28 January). We are focusing on two of the
most pressing aspects of the conference: the Global Economy and Climate
Change.
Other articles in our series on WEF:
- Jordan Levine: Socioecological Innovation: an Alternative Future
- Scott Edward Hartley: Political Liberalism at the Heart of International Trade
- Sam Vanderslott: Action on Climate Change Requires Global Technology Transfer
- Alyssa M. Ramsey: Human Rights: A Matter of Guiding the Invisible Hand
- Scott Michael Moore: A Multidimensional Approach for a Planet in Peril
- Dr. Luke Nichter: Redefining the IMF
From the discussion on the community
page we will generate
a special Atlantic Memo that will be distributed to WEF organizers and
to decision makers worldwide at the start of the conference. Please
share your comments on the recommendations and issues raised in this
article. We want to know how you think the WEF Davos Conference should
approach the long-term questions raised by the global financial
situation.
- Is unilateralism on the way out?
- Is the UN in a position to lead the way in global governance?
-Should the WEF advocate a supranational reserve currency?




January 22, 2009
Marie Grunert, intern at SWP, Silver Contributor (59)
Now this granted I don’t think that the United Nations, at least in its current form is ready for taking the role of world government. The idea is good but a couple of changes ought to be made. Two I perceive as particularly important:
To start with, the Security Council "execuitve body" as constituted today still reflects the post World War II world order. The so called five policemen possess the incredibly important right of veto and thus can block decisions from being taken. This would require a first transformation to extend other countries such as Germany and/or rising global powers like India or Brazil at an equal level. Whereas the General Assembly where every state is represented can make recommendations but not adopt binding rules
Second, one of the principal characteristic of a Nation State is the monopoly of the use of force in order to have the capacity to protect and defend its citizens. As it looks today it is very doubtful whether the UN possesses this capacity. Fair enough, on paper the Security Council is the only body which can decide and use force but only in - and rightly so to reduce the resort to force to the absolute minimum - very particular circumstances (art 41 &42). However this only limitedly grants states with the adequate protection and fulfilling this function is still very important. Despite originally planned, equipping the UN with a permanent army was never translated into facts. What is more, it is still quite arbitrary (partly still linked to the previously mentioned veto question) in what situations to intervene. As for art 51,allowing for collective and indicidual self defence it also poses some problems as it has sometimes been extensively interpreted leading to preventive and or preemptive self defense.
Globalization should not and cannot be stopped, however, a form of control ought to be set up to make it more fair, manageable and avoid i.e. excessive deregulation of financial markets to result in the current global economic turmoil. Institutions provide norms and rules and play a very important role as such. The United Nations, inclusive organization with participation of quasi every state is the most advanced example of “world government” and a good starting point for setting up a new world order.