the g20 and its institutional framework inter-regional and global governance: lessons from ter dr...

The G20 and its Institutional FrameworkInter-regional and global governance: lessons

from TER

Dr Henning Meyer (LSE)&

Dr Stephen Barber (LSBU)

The G20 and its Institutional Framework

Talk through initial research on TER

The problems with and importance of TER

Historical Context

Dysfunctionality and proposed solutions

Development of these ideas into current research on G20’s

institutional framework

Role of G20

Context

New dysfunctionality and potential framework solutions

Making Transatlantic Economic Relations Work

It is security interests which have characterised

the relationship between the USA and Europe

Transatlantic economic relations remains an

underexplored area of academic research

Increasingly important since the fall of the

Berlin Wall

Global recession has brought it to prominence.

Initial research:

Meyer & Barber, ‘Making Transatlantic Economic Relations Work’, Global Policy Journal, Vol 2 Issue 1, Jan 2011

Meyer & Barber, ‘Transatlantic Economic Relations as a Bridge’, Economia e Lavoro Journal, April

2011.


Transatlantic economic partnership is the biggest and most important in

the world.

800 million people

57 % of world GDP

33 % of global trade in goods

42 % of trade of services (2007)

It is so big that rules agreed have the potential to become de facto

global standards

No evidence that political frictions in the fields of security and foreign

policy have had any significant impact on the volume of transatlantic

trade and investment (Pollack and Shaffer 2006).

Initial research:



2011.


Historical Context:

JFK’s Declaration of Interdependence

(1962)

Transatlantic Declaration (1990)

New Transatlantic Agenda (1995)

Framework for Advancing Transatlantic

Economic Integration (2007)

Initial research:



2011.

Post NTA Organisational Structure

Intergovernmental Level:

• Regular summit meetings between the US President and a delegation of EU officials (mostly the EU Commission President and the rotating Presidency of the Council

of Ministers plus the High Representative for the Common Foreign and Security Policy)

Transgovernmental Level:

• Transatlantic networks of lower-level US and EU officials working on foreign policy and especially economic issues. These networks work largely unaffected by the

dynamics of transatlantic high politics

Transnational Level:

• Transatlantic Business Dialogue (TABD) – consisting of European and American CEOs lobbying for the liberalization of the transatlantic marketplace

• Transatlantic Consumer Dialogue (TACD) – network of EU and US consumer organizations

• Transatlantic Labor Dialogue (TALD) – Dialogue of trade unions (had only a handful of meetings but has not been formally abolished)

• Transatlantic Environmental Dialogue (TAED) – Dialogue of environmental stakeholders – (ceased to exist in 2001)

• Transatlantic Legislator’s Dialogue (TLD) – created in 1999 as a formal response of the European Parliament and US Congress to the NTA commitments. Its main aim is

to enhance the level of discourse between members of the European Parliament and the US Congress.


TER characterised by mutual dysfunctionality

Its agenda has focussed on too narrow an

agenda of simply reducing tariff barriers with

the all too ambitious aim of elimination

This has meant weakness in the process and

institutional failings

Initial research:



2011.


Proposed Institutional Innovations:

Permanent secretariat

Investigations, findings and recommendations

Setting de facto standards

Broadening the Agenda

Common industrial standards

Engaging stakeholders and incentivising

participation

Initial research:



2011.

Broadening this Approach to the G20

G20 established as a meeting of finance ministers and central

bankers in 1999 in response to the financial crisis of that

decade

It only became prominent in 2009 in response to the global

economic crisis and became leaders meeting

Appears to have usurped the G7/8 as the primary global

industrialised economic forum

Has had longer term success in Basel III capital and liquidity

accord

Faces similar and more difficult institutional challenges

New research:

Meyer & Barber, ‘The Institutional Framework G20’

• Report•Journal

Broadening this Approach to the G20

2009 meetings characterised by common interests

Positive outcome

Inclusive and collegiate approach (broadly)

Concerted action of fiscal stimulus and bail outs

Pittsburgh ambition “premier forum for international economic co-

operation”

Subsequent meetings have seen dysfunctionality

Diverging interests

Big player dominance

New Era of institutional innovation?

Existing institutions fail to reflect new power balance (Bretton Woods...)

One size fits all conditionality left wanting.

New research:



G20 Governance Challenges I

Transition from emergency institution to permanent

governance structure (G20 1.0 to G20 2.0)

Problem of ‘input legitimacy’ (G20 + 5 balance

question, +5 on unequal terms, +5 based on no

objective criteria)

Ability to reform itself Bretton Woods institutions

Create institution that overcomes the legitimacy

issues of the Bretton Woods institutions

New research:



G20 Governance Challenges II

Ability to follow through on agreements in G20

Communiqués ultimate test

Find a structure of overcome ‘prisoner dilemma’

by acting in global and not national interest

G20 dominated by the G2? Will always be a

challenge and integration is better than

exclusion

New research:



G20 and the OMC?

EU as laboratory for governance

mechanisms

OMC as governance structure between

loose cooperation and supranationalisation

Now a decade worth of experience with

OMC Could it be a viable structure for a

new G20 governance architecture?

New research:



OMC Origin

Open Method of Coordination (OMC) introduced as part of

the Lisbon Agenda in 2000 as a new governance mechanism in

policy fields outside the community method

It drew on experiences with the OECD and IMF but is set in a

different context (IMF = lender and monitoring institution,

OECD = policy forum that promotes bets practise and

exchange of experiences)

In the European context it was also meant to bring about

policy convergence and spread best practise slight question

of legitimacy

New research:



What is the OMC? I

The OMC is a mechanism that relies

on peer-review and peer-pressure

Soft-law non-binding and no

sacntions

Intergovernmental and voluntaristic

New research:



What is the OMC? II

1. Fixing guidelines for union with short-. Medium- and

long-term timetables

2. Establishing quantitative and qualitative indicators

tailored to member state needs

3. Translating these guidelines into national and

regional policies allowing for special circumstances

4. Regular monitoring, evaluation and peer review

processes

New research:



OMC Assessment

Proved to be an adaptable governance structure

that can be tailored to the need of different policy

fields

Received rather sober reviews in context of EU as it

was compared to effectiveness of community

method

Difficult to assess in what way it has triggered

policy convergence (methodological issues)

New research:



G20 Context

G20 is promising institution that could be

extended to other policy fields (what is the

alternative?) Needs to become more effective

French proposal (withdrawn?) of permanent

secretariat for G20 (similar to EU rotating

presidency)

But if there is a secretariat, what is it supposed to

do other than organising meetings?

New research:



An OMC for the G20 I

If the G20 is to grow into an effective governance

institution it needs to become more efficient

OMC is a useful governance mechanism between

loose cooperation and supranationalisation

OMC EU criticism strength in G20 context policy

convergence not the aim

New research:



An OMC for the G20 II

OMC designed for G20 would allow for

breaking communiqué commitments down

and monitor and evaluate implementation

Does not address all issues in full (input

legitimacy) but could help the evolution of

the G20 into a more effective global

governance institution

New research:



The Design Question

What specific elements of an OMC

should there be for the G20?

How can the input legitimacy problem

be addressed through an OMC?

How would an appreciated G20 link into

existing governance processes?

New research:



the g20 and its institutional framework inter-regional and global governance: lessons from ter dr...

Documents

meyer barber

transatlantic declaration

global policy journal

volume of transatlantic

new transatlantic agenda

initial research

economia e lavoro journal

global trade