The global governance reform and the role of the G-20 in recovery from the global crisis

Abstract

The global financial crisis demonstrated that because of global economic integration and interdependence, global collaboration is needed to create an effective global regulatory framework and a stable international financial system. In this conjuncture, the global governance system and the G-20 gained importance. The aim of this paper is to analyze the role of the G-20 in recovery from the global crisis within the context of global governance reform. To this end, the global governance concept is defined and effectiveness and legitimacy of the G-20 are analyzed by utilizing this concept. Debates and negotiations among the developed and developing countries at different platforms such as the G-20 summits are analyzed. International and domestic political obstacles to global governance reforms are investigated. It was concluded that the financial crisis enhanced the significance of the global governance system since it was clearly seen that the restructuring of the international financial and monetary system required collaboration of the developing and developed countries. The G-20 came out as the organization that could abate the representativeness, coherence and compliance deficits of the global governance system. Nonetheless, because of diverging interests of the Anglo-Saxons, the E.U. and the developing countries, it is expected that global governance reforms will proceed slowly. It is anticipated that if the interests of the Anglo-Saxons, the Europeans and the developing countries diverge furthermore, the reform of the global governance system may become a conflict zone of international politics.