Europe and the reshaped global order / Policy Brief
The G20 and the future of market regulation
10/09/2009 By Pablo Trucco, Diana Tussie
The global meltdown has politicised the governance of finance to an unprecedented yet healthy degree. At the very least, it has painfully resurrected the need for coordinated action to mitigate its impact and address the danger of multiplying pro-cyclical measures. Most significantly, the underpinnings of global financial governance have come into question, particularly the hold of leading developed countries as gatekeepers of the global supply of credit and, consequently, their far from amicable relations with borrowing countries.
The current global financial architecture rests on a number of (semi) institutionalised settings in which policy priorities have so far been decided by G7 countries. It is in these narrow venues that discussions over global financial governance traditionally took place.
The eruption of the G20 onto the global scene shows a shift away from the
closed club model of regulation. Although this shift is a step in the right direction, the depth, coverage and urgency of the crisis will demand further efforts. So far, such an intensification of deliberations is a de facto extension of the kind of informal collegial deliberations prevalent since the breakdown of Bretton Woods in the mid-70s.
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Keywords
Asia Civil society Economic crisis European Union G20 Globalization Multilateralism North AmericaRelated publications
- Central Asia and the global economic crisis
- Europe and the politics of financial crisis
- The financial crisis and EU foreign policy
Bio author: Pablo Trucco
Research at FLACSO (Buenos Aires, Argentina).
Bio author: Diana Tussie
Director. Program on International Economic Institutions (FLACSO,Argentina)
