Global governance: its structures and issues Global systems and global governance

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1 Global governance: its structures and issues Global systems and global governance What you need to know The governance, regulation and reproduction of global systems Positive and negative effects of the work of the UN and other global agencies Linkages between local, regional, national, international and global management actions Introduction What do we mean by global governance? The term suggests broader notions of steering and/or piloting rather than the direct form of control associated with government. Global governance therefore describes the steering rules, norms, codes and regulations used to regulate human activity at an international level. At this scale, regulation and laws can be tough to enforce, however. Global governance is steered by the work on supranational bodies such as the UN and EU (bodies where member nations delegate some authority to them). In turn, national governments play a role by agreeing to act in line with proposals made by these supranational organisations (e.g. by passing national laws to restrict carbon emissions as their share of climate change limitation agreements), or acting according to the UN Declaration of Human Rights). Due to their power and influence, TNCs also play an important role in global governance. The regulation and reproduction of global systems Regulation means management achieved through the enforcement of a set of rules. Many rules have been put in place to regulate world trade, for instance. Tariffs are imposed on manufactured goods entering the EU. It is illegal for individuals or companies based in the EU to avoid paying these import taxes deliberately when they are buying goods direct from China or the USA. Reproduction refers to the way that the global economic system has - according to its critics - essentially remained unchanged in the post-war period despite mounting evidence that the rich get richer while the poor get poorer. Oxfam calculated that the richest one per cent have seen their share of global wealth increase from 44 per cent in 2009 to 99 per cent in The result is an explosion in inequality at a time when one billion people still live on less than US$1.25 per day. Globalisation critics point to the way that capitalism on a global scale is a system which is managed by wealthy societies and states in ways that ensure they continue to benefit most. Fundamentally, the system resists change and reproduces itself over time, extending to ever more countries. Regulation and reproduction take place in three important ways. These are: the creation of legal frameworks; the steering work done by international institutions and organisations; and the transmission of social norms on global scale.

2 Global governance: its structures and issues Global systems and global governance Laws An example of global law-making is the UN Convention on the Law of the Sea (UNCLOS). This is a vast global treaty covering navigational rights, territorial sea limits, economic jurisdiction, legal status of seabed resources beyond the limits of national jurisdiction, conservation and management of marine ecosystems, protection of the marine environment. It includes a binding legal procedure for settlement of disputes between states. It is also illegal under UNCLOS for ships that have recently delivered crude oil to use seawater to wash out their tanks. Possibly the most significant legal instrument of this century is how the United Nations Secretary-General described the treaty after its signing in Not all states have signed up to UNCLOS, however. Institutions The International Monetary Fund (IMF) and the World Bank are two important institutions. They were founded at the end of the Second World War by the victorious allied nations and other leading industrialised nations at the Bretton Woods conference in the USA. The aim was to help rebuild and guide the world economy. The General Agreement on Tariffs and Trade (GATT) was set up soon afterwards and later became the World Trade Organisation (WTO). Over time, these institutions have been important in reproducing and enlarging the global capitalist system. This has been achieved through a combination of global economic management and free trade policies. Norms A norm is an acceptance of certain attitudes, practices and regulation as valid and normal for states aspiring to a high standard of governance. The UN has done an enormous amount of work to protect human rights and promote sustainable development. Both concepts are social norms insofar as they are widely valued and are viewed as appropriate goals to pursue; moreover, it is expected that there should be universal acknowledgement of their importance. The UN Declaration of Human Rights defines global human rights in considerable detail. A Human Rights Council has been established to press for improvements in states and contexts where human rights are denied to people. The 1992 Conference on Environment and Development (the Earth Summit in Rio de Janeiro) established a normative plan of action for sustainable development and laid the groundwork for the Kyoto Agreement in 1997 and many subsequent climate change conferences, accords and agreements. Issues and impacts of global agencies Global agreements and organisations existed in the past. The League of Nations was established after the Great War in 1919, for instance. In the post-war period since the Second World War ended in 1945 there has been an acceleration towards even greater global governance. During the post-1945 era, international agencies, including the UN, have

3 Global governance: its structures and issues Global systems and global governance worked to promote growth and stability. Their actions, however, sometimes exacerbate inequalities and injustices, as the table shows. Agency Actions and scope Evaluation The United Nations was the first post-war intergovernmental organisation (IGO) to be established. It has become an umbrella organisation for many global agencies, agreements and treaties. Its remit now includes a whole range of areas of governance spanning human rights, the environment, health (WHO the World Health Organisation) and economics. United Nations World Bank World Trade Organisation (formerly GATT General Agreement on Tariffs and Trade) The World bank is based in Washington DC, USA. It promotes economic development by providing advice, loans and grants for the reduction of poverty. The World Bank s role is primarily to offer long-term assistance rather than crisis support (which the IMF deals with). In the 1980s, the World Bank introduced Structural Adjustment Programmes (SAPs) for countries who had experienced severe financial difficulties. Since 1995, the WTO has formulated trade policy and agreements, and has tried to settle trade disputes. Overall, the WTO aims to promote free trade on a global scale. Unfortunately, a round of negotiations which began in 2001 stalled for 14 years. Trying to get 162 member states to agree anything can be challenging. As a result, many countries have instead focused on making regional and bilateral trade deals instead (between two individual nations). The UN has helped promote geopolitical stability alongside a developmental agenda including the Millennium Development Goals. However, because there are 193 member states, it is sometimes hard for agreement to be reached on issues. When Russia annexed Crimea in 2014, UN member states were divided on whether to recognise and accept the change or to condemn it. Under SAPs, borrowing countries must agree to make concessions in return for new lending. This might involve privatising poorly-run government services, or withdrawing costly state support for inefficient industries. Critics of SAPs say they sometimes exacerbate poverty instead of solving it and further undermine the economic sovereignty of borrowing states. It assists the reproduction of capitalist and free-trade market systems by insisting on this model as a basis for financial assistance. Difficult problems which the WTO has failed to deal with satisfactorily include: 1. rich countries failing to agree over how far trade in agricultural produce should be opened up 2. the fast growth of emerging economies, including China, which makes it harder to agree on fair policies for so-called developing countries

4 Global governance: its structures and issues Global systems and global governance Linkages between local, regional, national, international and global management actions Interactions between the local, regional, national, international and global scales are fundamental to understanding global governance. This can be demonstrated by taking a look at the global governance of Arctic and Antarctic regions. A range of management actions have been taken at global/international, national and regional/local scales: Global/international agreements and organisations have attempted to influence what happens in these cold environments. For instance, the number of bowhead whales in Arctic waters has been recovering at 3 per cent annually since the 1970s thanks to the global ban on commercial whale hunting that was introduced by the International Whaling Convention in The Antarctic Treaty is often cited as an international success-story (see ). Countries in the Arctic Circle have tried to emulate this success by creating an organisation called the Arctic Council which wants to deliver sustainable development throughout the entire Arctic region. The Arctic is tougher to govern than Antarctica, however, due to the fact that the region is home to settled populations living in eight countries. National governments in the Arctic region may attempt to resolve the conflicting interests of many different groups, ranging from indigenous people to big businesses, with varying success. Nowhere is this clearer than in Alaska. The state is running short of money due to low world oil prices. Some of its politicians, including Senator Lisa Murkowski, want to increase oil production to increase Alaska s income. While in office, US President Barack Obama took a different view. He wanted to maintain what he called the integrity of the Alaskan wilderness. President Obama banned oil exploration from taking place in 12 million acres of the Arctic National Wildlife Refuge (ANWR). The future of Alaska is an issue that will continue to divide American politics. Regional and local organisations try to support the interests of groups of people who may not otherwise be heard. The Inuit Circumpolar Council (ICC) in Canada is a non-profit organization that represents indigenous people from Nunavut and other northern regions. In Canada, the Dene people of the Mackenzie River Basin have opposed the arrival of global oil companies. While appreciating the economic benefits, they fear environmental damage. Successful governance of the Arctic region requires joined-up thinking between the politicians and other players who operate at these three overlapping geographic scales.

5 The G# and its influence on global economic convergence Global governance: its structures and issues The executive board of the global economy: G8 and G20 meetings Background Occasionally you might come across a news report showing lines of dark-windowed limousines discharging suited men and women at a secure conference location and the mention that a G20 meeting is under way. Then again, a few months later there may be a report of a G8 meeting. These refer to get-togethers of heads of like-minded governments and their top ministers of state where discussions take place on the key issues of the day and to co-ordinate future action. It is one of the mechanisms by which global norms are agreed at intergovernmental meetings, and by which reproduction of dominant global values and systems are consolidated and spread. The G stands for Group as in Group of 8 leading industrialised countries for G8 meetings. The number has varied. The original G was a meeting in France in 1975 of the heads of government of the six leading industrialised countries being affected by OPECs decision to raise the price of oil two years earlier, from France, Germany, Italy, Japan, the UK and the USA. In the following year, the Canadian prime minister was invited and it became the G7 meeting. By 1998, as a market-orientated Russia emerged from the break-up of the USSR, its president joined the group, making it the G8. In 1999, the meeting was expanded to nineteen countries plus representatives of the EU, to study, review and promote international financial stability. The G20 meeting of finance ministers was held in Berlin and brought together as well as the G8 countries ministers from Argentina, Australia, Brazil, China, India, Indonesia, South Korea, Mexico, Saudi Arabia, South Africa, Turkey and representatives of the EU. The G20 economies account for around 80% of world trade and twothirds of the world s total population. Since the global financial crisis in 2008 its significance has been upgraded to an annual meeting of the heads of government/state of the participant countries and has become a key forum for international economic cooperation. Alongside G20 meetings, the G8 group continues to meet annually. Sometimes referred to as the Great Powers they account for only 14% of the world s population but 60% of world trade. In 2014 the meeting was due to be held in Sochi, Russia, but as a result of Russia s annexation of the Crimea from Ukraine, Russia was excluded from the group and a G7 meeting was relocated to Brussels in Belgium. Russia has, at the time of writing, yet to be invited back to the group. Procedures The presidency of the group rotates annually among member countries. It lacks an administrative structure and is more an annual forum for heads of government to meet, in both formal and informal discussions, to cover the key issues common to their countries and seek co-ordinated action to resolve economic and political issues. Finance ministers of the G8 may hold their own meeting schedule to discuss economic strategies that are more effective if carried out by all such as measures to reduce tax evasion by individuals and corporations. Ministers of government departments may also attend G8 meetings to hold their own specialist discussions on topics such as health, economic development, energy, the environment, terrorism and trade, among others. The 2017 G20 heads-of-government summit is due to take place in Berlin in early July 2017, and goes by the theme Shaping an interconnected world: creating a networked world. Before that, in March, finance ministers and central bank governors met. These meeting often involve representatives from major supranational organisations including the IMF, World Bank, World Trade Organisation and OECD.

6 The G# and its influence on global economic convergence Strengths The meeting of the G8 and G20 ensure there are regular face-to-face meetings between the heads of state/government of the world s most powerful economic and military nations. As such, it is a valuable opportunity to discuss impending issues and resolve them peacefully. The decision to uninvite Russia in 2014 can be seen as a deterrent to the supporting of aggressive military action and an affirmation of the norms of settling international disputes through diplomatic and peaceful means. It also gives heads of government/state the opportunity to respond to urgent issues with an international dimension, such as agreeing refugee policy, responses to international terrorism, and the most recent data on climate change, so that issues can be dealt with promptly before they become a major crisis. Criticisms There has been comment that the G8 summits, in particular, are a cosy club for rich countries trying to order the world to maintain their pre-eminence. Countries with emerging economies that do not get invited to the G20 conferences may feel excluded such as Nigeria, Pakistan and the Philippines. It is also seen as absorbing emerging economies into the reproduction of the dominant financial, trade and market systems that benefit the wealthiest countries. (The counter-argument is that the extension of capitalism is a way of spreading wealth from richer to less well-off countries as they are engaged more tightly into global trading systems). The absence of an organisational structure means the G8 and G20 are little more than a talking shop. Agreements and decisions taken have no direct legal effect so what may be agreed over a dinner, may come to nothing when participants return home. Having said that, sometimes the changing of minds and persuasion of major influential figures, is more likely to occur over informal conversation than within tighter structures that are being closely recorded and documented. Making conflict visible In recent years both G8 and G20 summits have been a focus for mass protest movements. The 2009 G20 summit in London provoked large protests over the role of banks in the financial crisis and the following year, the meeting in Toronto saw demonstrations by anti-capitalist groups. In 2013 a G8 summit destined to take place in Northern Ireland witnessed demonstrations in both London which saw 57 protesters arrested and at the summit venue, which passed more peacefully. When key world leaders meet together, it can be a focus for those with grievances to make their point where they will be visible to the world s gathered news media, if not to the leaders themselves. Exam style questions: 1. What is meant by the reproduction of global systems and by what means might it occur? (4 marks) 2. Examine how global governance operates at different levels of scale. (6 marks)

7 The G# and its influence on global economic convergence 1. What is meant by the reproduction of global systems and by what means might it occur? (4 marks) This will be a point-mark response. One mark is awarded for each point of knowledge or understanding. Extra marks are allowed for the development of points. Points that may be included: There are dominant global systems influencing trade, markets, finance and investment as a result of geopolitical integration. Players in these systems have an interest in maintaining, strengthening and extending the reach and robustness of the systems. Emerging economies, and those yet to develop, are encouraged to adopt the practices and norms of these systems in order to access the benefits of membership. This results in the reproduction of dominant global systems in the ways they conduct themselves. Organisations such as the World Bank, World Trade Organisation and IMF encourage the extension of the dominant democratic, market-orientated capitalist system by offering development assistance to countries that take on these features or shift their practices towards them by, for instance, moving from dictatorship to democracy, or from state-owned industry to privately-owned organisations. Groups of dominant countries form cooperative groups that exclude countries operating very different systems or norms and extend membership to those displaying similar values such as the G20 group. This encourages countries wanting membership to reform themselves more towards the characteristics of the dominant countries. 2. Examine how global governance operates at different levels of scale. (6 marks) Level 1 (1-3 marks): Basic knowledge and understanding of the operation of global governance. Limited in scope and awareness of scale distinctions. Level 2 (4-6 marks): Clear knowledge and understanding of the operation of global governance. Perceptive awareness of the different scales at which it operates. Well applied to context. Points that may be included: Global governance is a result of many different influences, systems and control networks. Different ones may operate at different scales; others operate at all levels but in different forms. The World Health Organisation (WHO) is an arm of the UN that may have a general health goal (eradication of malaria) but which is implemented at local level in regions most prone to the infection and with fewest resources to combat its infection and spread. WHO may provide mosquito nets for night use to remote rural communities close to areas of stagnant water. The WHO will require assurance at the national level that its workers will be safe and given access to the resources they require to complete their actions. At a regional level the World Bank finances projects intended to improve conditions for those in need of financial assistance. A cross-border project is the Niger River project where nine countries with land in the Niger Basin have been provided with finance to better manage water resources to improve food and energy security. Other projects are regional but within one country such as the Cusco regional development project in Peru to increase the ability of the cultural attraction to cope with increasing tourist numbers through a waste management

8 The G# and its influence on global economic convergence programme. The World Bank will provide finance as long as key commitments are made by receiving countries. At a national scale entire countries may be integrated into an international trade network as a result of changed practices. Mexico became a member of the OECD in 1994 once it demonstrated a commitment to the dominant norms of democratic government and a marketdriven industrial strategy. At an international scale countries may sign up to agreements to implement national policies as part of their contribution towards tackling global challenges. The COP21 Agreement in Paris in 2015 saw a record number of countries committing to carbon-emission reduction targets and promising to enact legislation to help restrict the impact of climate change at a global scale.

9 Global governance: its structures and issues Q1 A B C D E True or False? A supranational body exerts influence over a number of national governments Capitalism encourages private ownership of the components of trade for profit The UN enforces its regulations through its own military army of UN soldiers Global norms are the features of the most successful TNCs that give them profits Global governance operates through a combination of norms, laws & institutions Q2 A B C D E Q3 A B C D E Match the abbreviation with its definition & write in the full name An umbrella body that provides a forum for different governments to come together to achieve more together than they would individually A set of regulations concerning responsible use of marine resources and reducing chances of disagreements between countries with coastlines Eight targets set out by the UN designed to improve the lives of those in the least developed countries. Now replaced by 17 Sustainable DGs A set of measures and requirements that are intended to assist countries coping with difficulties that they agree to implement A body that support the growth of international markets by establishing a basic framework of trade agreements acceptable to many countries MDG WTO IGO UNCLOS SAP One sentence is incorrect in each of the explanations below. Identify the wrong one. The term global governance is not the most accurate phrase as there isn t a world government. The United Nations operates with the agreement of member countries. However, every country in the world has to be a member of the United Nations. Many supranational organisations operate through a series of regulations. These are proposals that each member of the organisation may choose to follow, or not. While regulations may change over time they are designed to be fair to all member countries and reduce potential tension. The World Bank is the largest bank in the world, owning all the other banks that exist. It has vast financial reserves that it can make available not only to individual countries, but groups of countries with a common project. It requires interest to be paid back on any loans it provides. One of the most important agreements of the UN is the Declaration of Human Rights. If a signatory to the UN fails to respect it, its citizens can appeal to a Human Rights Council. If the government fails to respond adequately the UN can instruct other members to invade that country. A long-lasting agreement of global governance is the Antarctic Treaty. Based on its success an Arctic Council has been created which is even easier to manage as it s a smaller area. One of the considerations of the Antarctic Treaty is that there is no permanent population in the region.

10 Global governance: its structures and issues Q4 Research the UNs Sustainable Development Goals and classify them according to their key target-focus for improvement Economic Social Environmental Political Q5 Identify examples of global governance that operate at different scales Local and regional scale: National scale: International and global scale:

11 Global governance: its structures and issues ANSWERS Q1 True or False? A A supranational body exerts influence over a number of national governments True B Capitalism encourages private ownership of the components of trade for profit True C The UN enforces its regulations through its own military army of UN soldiers False The UN has no army of its own and it doesn t enforce its regulations militarily D Global norms are the features of the most successful TNCs that give them profits False Global norms relate to more than TNCs to governments and organisation E Global governance operates through a combination of norms, laws & institutions True Q2 A B C D E Q3 A B C D E Match the abbreviation with its definition & write in the full name An umbrella body that provides a forum for different governments to InterGovernmental come together to achieve more together than they would individually Organisation A set of regulations concerning responsible use of marine resources and United Nation reducing chances of disagreements between countries with coastlines Convention on Law of the Sea Eight targets set out by the UN designed to improve the lives of those in Millennium the least developed countries. Now replaced by 17 Sustainable DGs Development Goals A set of measures and requirements that are intended to assist countries coping with difficulties that they agree to implement A body that support the growth of international markets by establishing a basic framework of trade agreements acceptable to many countries Structural Adjustment Programmes World Trade Organisation MDG WTO IGO UNCLOS SAP One sentence is incorrect in each of the explanations below. Identify the wrong one. The term global governance is not the most accurate phrase as there isn t a world government. The United Nations operates with the agreement of member countries. However, every country in the world has to be a member of the United Nations. No compulsion: some countries aren t members, such as Vatican City, Taiwan, and Palestine Many supranational organisations operate through a series of regulations. These are proposals that each member of the organisation may choose to follow, or not. While regulations may change over time they are designed to be fair to all member countries and reduce potential tension. A regulation is a rule that is expected to be followed as a condition of membership The World Bank is the largest bank in the world, owning all the other banks that exist. It has vast financial reserves that it can make available not only to individual countries, but groups of countries with a common project. It requires interest to be paid back on any loans it provides. The World Bank does not own other banks. One of the most important agreements of the UN is the Declaration of Human Rights. If a signatory to the UN fails to respect it, its citizens can appeal to a Human Rights Council. If the government fails to respond adequately the UN can instruct other members to invade that country. The UN cannot instruct military action; it can only vote to authorise (or not) action by member countries A long-lasting agreement of global governance is the Antarctic Treaty. Based on its success an Arctic Council has been created which is even easier to manage as it s a smaller area. One of the considerations of the Antarctic Treaty is that there is no permanent population in the region. The Arctic is more difficult to manage as so many different national group live within the area

12 Global governance: its structures and issues ANSWERS Q4 Research the UNs Sustainable Development Goals and classify them according to their key target-focus for improvement Economic Social No poverty Affordable and clean energy (see below) Decent work & economic growth Industry, innovation & infrastructure Reduced inequalities Environmental (Affordable & clean energy) Sustainable cities & communities Climate action Life below water Life on land Zero hunger Good health & well-being Quality education Gender equality Clean water and sanitation Responsible consumption & production Political Peace, justice & strong institutions Partnerships for the goals Q5 Identify examples of global governance that operate at different scales Local and regional scale: NGOs such as WaterAid and Oxfam often have projects that function at the local and regional scale, developing community resilience to difficult circumstances and improving basic infrastructure. Emergency Relief operated through arms of the UN will focus rapid relief programmes in locations where a natural disaster has occurred, such as the Haiti earthquake. National scale: Officials from the UN may offer advice to governments embarking on a democratic process in national elections to ensure they are free and fair. The IMF can assist a country with financial issues with immediate loans to prevent economic collapse, however they may insist on certain SAPs and there will interest to pay on the loans International and global scale: The COP21 Paris Agreement on climate change is an example of international targets, strategies and norms being agreed to help restrict global warming to no more than 2C above pre-industrial levels. Agreements have to be ratified by each national government.