REMARKS BY AMBASSADOR VANU GOPALA MENON, PERMANENT REPRESENTATIVE OF SINGAPORE TO THE UNITED NATIONS IN NEW YORK, DURING THE THEMATIC DEBATE ON THE ROLE OF THE UN SYSTEM IN GLOBAL ECONOMIC GOVERNANCE AT THE SPECIAL HIGH-LEVEL MEETING OF ECOSOC WITH THE BRETTON WOODS INSTITUTIONS, THE WTO AND UNCTAD, 11 MARCH 2011 The role of the UN system in global economic governance is not a new issue, but one which has become the topic of much debate in recent years, especially following the 2008/2009 economic and financial crisis. Last year, when we were negotiating the General Assembly draft resolution on global governance, many of us argued that the UN system as a whole (meaning the UN Secretariat, the UNDP, the BWIs and other parts of the UN extended family) should play a central role in global economic governance. Some, however, argued that it is only the UN, and not the rest of the UN system, that should play a central role. There is also the issue of the UN system s role in relation to other institutions, such as regional organisations and informal groupings like the G20. For me, the key question is what role the UN system actually plays in global economic governance and how can we strengthen its role in this regard. The UN System s Role 2 Having said that, the entire UN system, which includes the BWIs and the WTO, does play an important role in global economic governance. The WTO has been key to setting the rules on international trade. The IMF recently reformed its governance and quota, which would increase the representation of the dynamic Emerging Market and Developing Countries in an effort to increase the recognition of their voices. The World Bank also plays a vital role in supporting the development efforts of many developing countries economies. Nevertheless, when the global economic crisis hit us, it was the G20 that stepped up to the plate and, working together with the BWIs, catalysed a coordinated global response to the crisis, thereby helping to avert a potential global economic depression in 2009. In fact, the G20 leaders went further by designating the grouping as the premier forum for international economic cooperation. To me, the manner in which the G20 responded to the financial crisis underscored two things. First, it highlighted the reality that key decisions on global economic issues can no longer be the
preserve of a small elite group of developed economies (the G7 or G8), but must include key emerging economies, such as China, India and Brazil. Second, it pointed to the weaknesses of the current system, which includes the UN system, and the need for much better and more effective global economic governance mechanisms for policy coordination and international cooperation. 3 Evidently, the UN system is not the only player in the area of global economic governance. Its role is clearly complemented by other institutions, such as regional organisations and informal groupings like the G20. It is in this context that the informal Global Governance Group (3G), which comprises 28 countries from all geographical regions, has been trying to promote a constructive dialogue between the UN and the G20. If the G20 is going to play the self-assigned role of being the premier forum for international economic cooperation, it is important that they do so in consultation with the wider UN membership, the vast majority of whom are not represented in G20 discussions. We need to keep an eye on the work of the G20 and keep them honest, especially since their decisions will have a major impact on all of us, whether we like it or not. In this regard, the 3G has called for the G20 to regularly brief us on their work, as well as continue to invite established regional groupings to their Summits so as to increase engagement among the different stakeholders. The 3G has also made it clear that the UNSG and his Sherpa should also be able to participate in all aspects of the G20 process. While the UNSG cannot represent the national positions of every Member State, he can convey the broad sense of the house. More importantly, we firmly believe that the G20 process should enhance and not undermine the UN. 4 Let me add that one area where the G20 can play an important leadership role but where I believe they have not done enough is in the area of international trade. The international trading system must be kept open for markets to make the necessary adjustments and for prices to find their right levels. This is part of the fundamental restructuring of the global economy which the G20 is hoping to achieve. The G20, which together accounts for 80% of international trade, has to play a leadership role in breaking the current impasse in the Doha Round negotiations. In fact, the key countries, which are not only responsible for the current stalemate in the Doha Round but who also have the ability and influence to turn things around, are all present in the G20. One cannot wish away protectionism by saying all the right things in G20 communiqués. The G20 needs to follow up with concrete steps and set a good example for the rest of the world. 2
Strengthening the UN System and ECOSOC 5 In the meantime, how do we strengthen the UN system so that it is better able to take on the task of international economic cooperation and coordination? 6 First, the UN system needs to reform its own internal processes to stay relevant and be sufficiently nimble to respond to the challenges of the day. If the UN system wants to play a central role in the evolving global governance framework, it needs to examine how it can enhance its existing networks and capabilities to effectively engage all the different institutions and interests that have an impact and a stake in global issues. This will require political will, a mindset change and a dose of realism from both Member States and the Secretariat. 7 For a start, some parts of the Secretariat keep trying to protect their turfs at the expense of the UN system as a whole. This needs to stop. It is no secret that there are some in the Secretariat that are not terribly enthusiastic about reforming the UN system. As a case in point, when we were discussing the establishment of UN-WOMEN, there were UN agencies lobbying behind the scenes to protect their own turfs. 8 Similarly, there are some amongst us Member States who need to stop obstructing the reform process. Instead, we should focus efforts on proposing constructive and pragmatic ideas. There are others who want everything to be dealt with in the General Assembly and no where else because they are afraid of losing control. We have to realise that no institution has the monopoly on seeking global solutions to global problems. Our insistence on bringing everything to the UN may, however, inadvertently marginalise the UN process. Just look at the number of General Assembly resolutions! Member States are so reluctant to give up or retire their pet issues that the number of resolutions grows year after year. Yet, some have little value-add and there is insufficient focus on implementation. And because our agreements are often driven to the lowest common denominator, we create voluntary trust funds which often have little money and request for multiple reports from the Secretary-General which most don t read. 9 That said, there are many agencies within the UN system that are doing good work, including those focused on implementation in the field. It is therefore important that we equip them with the necessary resources and capabilities to effectively and quickly address global challenges, while developing further areas of cooperation within the UN family, including the BWIs, to avoid duplication and promote synergies. Member States should also realise that when the UN system is 3
able to tackle pressing global challenges promptly and coherently, solutions will naturally be sought from within the UN system. 10 Second, we need to re-look the composition of ECOSOC s membership. At present, the African Group has 14 seats, Asia 11, EEG 6, GRULAC 10, while WEOG has 13 seats. Based on the geographical representation of Member States at the UN today, if WEOG has 13 seats, the African and the Asian Group should have 24 seats, EEG 10 and GRULAC 15. How is ECOSOC supposed to respond to the global challenges of today when its archaic structure has not kept up with the geo-political realities of our time? This is an issue that the PGA could and should take up as part of his theme of Reaffirming the central role of the UN in global governance for the current General Assembly session. 11 Third, the work of ECOSOC is linked to the larger institutional framework for sustainable development, which includes the economic, environment and social pillars. In fact, trade and climate change are examples of issues that cut through all three dimensions. It is therefore important that ECOSOC s discussions and recommendations take on a holistic approach, encompassing the three pillars. To stay relevant, ECOSOC needs to take on key issues that Member States are grappling with, engage with all stakeholders, produce outcomes which have value-add and ensure that there is follow-up. For example, it would have been useful if the second session of the Preparatory Committee for the UN Conference on Sustainable Development, which discussed these issues on Monday and Tuesday this week, took place back to back with this ECOSOC meeting. This would have encouraged even richer discussions and outcomes for both meetings. Conclusion 12 The UN should be the logical recourse to tackle what former Secretary- General Kofi Annan once referred to as the innumerable problems without passports. The UN s clear advantage - its universal membership - gives its deliberations and recommendations legitimacy. However, its greatest strength is also often its greatest weakness. The UN s need to accommodate the concerns of 192 countries often results in slow movement and outcomes that are watered down to the lowest common denominator. As a result, the UN is not always able to move quickly and nimbly to address the key challenges of the day. While the establishment of UN-WOMEN is proof that Member States can occasionally update the UN system when there is the political will to do so, more often than not 4
Member States are not able to find agreement on many of the urgent reforms that the UN needs. 13 In this context, it is important that the UN tackles the tension between inclusiveness and efficiency which is key to strengthening the global governance framework. Any solution to the problems the world faces today has to strike a balance between these two elements. The question then is what are the right forum and the right combination of parties to best address a given issue. The UN system and other institutions, such as regional organisations and informal groupings like the G20, are in a sense a partial response to this challenge. However, if the UN system is unable to reach agreement on important issues of the day, we run the real risk of the UN having no voice on these issues and, worse still, disenfranchising itself in the global debate on issues of vital importance to all States...... 5