the g20 and its institutional framework inter-regional and global governance: lessons from ter dr...
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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.
Making Transatlantic Economic Relations Work
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:
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.
Making Transatlantic Economic Relations Work
Historical Context:
JFK’s Declaration of Interdependence
(1962)
Transatlantic Declaration (1990)
New Transatlantic Agenda (1995)
Framework for Advancing Transatlantic
Economic Integration (2007)
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.
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.
Making Transatlantic Economic Relations Work
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:
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.
Making Transatlantic Economic Relations Work
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:
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.
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal
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:
Meyer & Barber, ‘The Institutional Framework G20’
• Report•Journal