The two ways of global governance after the financial crisis: Multilateralism versus cooperation among governments

Abstract

In an ever-more interdependent world economy, the number of global and regional public goods, from financial stability to sustainable growth, quickly increase and call for greater global and regional collective action. This paper tries to understand which mechanisms, if any, have been adopted to achieve a proper degree of international cooperation after the 2008 financial crisis. The analysis shows that the movement toward a new economic global governance is not the result of a single strategy but, rather, an original blend of different solutions enhanced by flexibility and experimentalism. Some of these solutions involve efforts to strengthen multilateral agreements and the effectiveness of supranational institutions and regulatory measures; others aim to develop new forms of cooperation among governments, through a “concerted practice” form of action. Informal contacts and meetings among political leaders and the G-20 summits become the preferred rooms in which to exchange points of view, to coordinate action without assuming legal obligations, and to monitor voluntary compliance. The parallel approval of similar pieces of legislation at the national level signals the willingness of governments to cooperate effectively, while leaving space for opportunistic behaviors.