Inclusive and Effective Global Economic Governance:

1. Inclusive and Effective Global Economic Governance: A challenge of our times Graduate Program in International AffairsPracticum in International Affairs Presentation Client: United Nations Department of Social and Economic Affairs Strategic Planning Department Aditi Shukla Manjola Karame Martine Nedregård Martin Wøldike Advisor: Ambassador RafatMahdi

2. UN Resolution: • Secretary -General’s Report • Reaffirm UN’s role in global economic governance

3. Client • United Nations Department of Economic and Social Affairs • Strategic Planning Division

4. Client Objective • Find a solution to the current state of global economic governance • Put the UN on center stage

5. Client Objective • “In what way can the UN system be strengthened to play a leading role in global economic governance facilitating both more coherent and better coordinated multilateral policy responses to global challenges?”

6. Background • Failure of international community to handle crisis through a representative body • Weaknesses of current international economic system highlighted • Current system inadequate • How can the UN play a leading role?

7. Methodology • Qualitative Research Methods • Interviews with prominent UN Ambassadors • G20 • Global Governance Group

8. Why the UN? • Of its universal character with • Inclusive representation • Global outreach • Long expertise • Widely regarded as legitimate • Can create international law

9. Dilemma: • Efficacy v. legitimacy and inclusiveness

10. Deficits in Global Economic Governance • Coherence • Legitimacy • Inclusiveness • Effectiveness

11. Lack of Coherence • Myriad of actors, but little coordination • Gaps to bridge and overlaps to break • Will improve general effectiveness • How to address the incoherence in a legitimate and effective way?

12. Lack of Legitimacy • Need for inclusiveness/outreach/representation • Need for effectiveness

13. Balancing Effectiveness and Inclusiveness • Tradeoffs between effectiveness and inclusiveness • What is the “optimal” balance?

14. Criteria • Criteria of the selection of the 47 countries in the United Nations Economic Global Governance Council: • Population density • Nominal GDP • Number of states in the region • Effectiveness and inclusiveness of a global economic governance body are most efficiently maintained through a model of regional representation

15. UN Regional Groupings • Council is organized in terms of the five UN Regional Groups: • Africa —53 countries • Asia —53 countries • Eastern Europe —23 countries • Latin America and the Caribbean —33 countries • Western Europe and Others —28 countries

16. UNEGG Council Seat Allocations Total UNEGG Council Seats: 47

17. Population Sub-Group • Population • In order to represent countries with substantial populations. • Countries with the largest population must be present to make a substantial impact and effect a large body of people

18. GDP Sub-Groups • 3 subgroups dedicated to the three nominal GDP divisions of high, middle and low in the region: • Economic diversity • Seat eligibility

19. Baseline UNEGG Council Seat Allocations

20. Seats Based on Percentage of World GDP • Proportion of seats should be allocated based on the region’s access to the resources in question for the sake of effectiveness of the council- 15% threshold: • Every 15% share of total world GDP a region is allocated an additional seat.

21. Percentage of Total World GDP by Region

22. Calculation of “15%Threshold” Seats by Region

23. UNEGG Council Seat Allocations + World GDP “15% Threshold” Total UNEGG Council Seats: 25

24. Open Seats • The region will be permitted to democratically allocate their open seats as they see fit. • There are no restrictions on the nomination for the seats other than membership in the region. • Flexibility • Acceptance of the Council • Encourage energetic participation.

25. UNEGG Council Seat Allocations + World GDP “15% Threshold” Total UNEGG Council Seats: 25

26. Population Size • The largest populations must have a seat at the table as their decisions impact a large proportion of the global economy.

27. Seats Based on Percentage of World Population • The “>1% rule” will ensure that all member states with populations exceeding 1% of the world population are eligible for nomination for the regional population seat. • Each region is given an additional seat for every third country which accounts for greater than 1% of the world’s population.

28. Seats Based on Percentage of World Population

29. Seats Based on Percentage of World Population Total UNEGG Council Seats: 30

30. Seats based on States to Seat Ratio • “10:1 ratio”– calls for the allocation of an additional seat for every 10 member states in a region

31. Seats based on States to Seat Ratio

32. UNEGG Council Seat Allocations + 10:1 Ratio Total UNEGG Council Seats: 47

33. The UNEGG Council

34. Conclusion • United Nations is well-positioned to play a leading role in shaping an effective, representative and coherent system of global economic governance. • We endorse the proposed model for a UNEGG Council

35. Thank You! • Alia and Mark • Mr. NavidHanif • Ms. MadhushreeChatterjee • The UN Ambassadors • And of course, our Ambassador RafatMahdi