Global Governance for a Global Age: The Role of Leaders in Breaking Global Deadlocks

CIGI Policy Brief #7

November 1, 2008

The financial crisis has highlighted gaps in global governance of international finance and capital. The world is interdependent in financial markets, trade, infectious diseases, climate change, terrorism, product safety, food supply and water tables. Our collective capacity to manage interdependence through coordinated policy responses is inadequate. There is a gap between the distribution of authority and of power, between legitimacy and efficiency. A new forum upgrading the existing G20 finance ministers' group to the level of prime ministers and presidents could effectively resolve key global issues. An exercise involving government officials with experts from G20 countries, modeled after the G8 summit preparatory process, demonstrated that an inclusive process could develop a consensus solution to the climate change deadlock. A win-win package deal with several building blocks could be produced. The composition and size of the leaders group is contentious, but there are means for effective participation besides being present. The US convening leaders from the G20 countries on November 15 will lead to reconvening on the next global crisis. Because everything is interconnected, the leading role has to be taken by leaders, not individual cabinet ministers. Internationally, accumulating anomalies must be addressed collectively. The global financial crisis is an opportunity to replace antiquated institutions.

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