Global Public Policy and International Organization

1. Global Public Policy and International Organization “Globalization has ended the nation-state’s monopoly over internal sovereignty, which was formerly guaranteed by territory.” Wolfgang H. Reinicke

2. Three Interconnected Challenges • Globalization • Poverty • Environment

3. Response Global institutional adjustment New Development Paradigm Re-orientation of Development System The Globalization Challenge • Fragmentation of international politics vs. Integration of the global economy • Knowledge replaces mass production as main source of national wealth • Massive deficit in global public goods

4. The Poverty Challenge • Out of 4.4 billion people in developing countries 1.3 billion subsist on less than $1/day • 3 billion on less than $2 • 15 million people die of poverty related causes annually • 1.2 billion lack access to safe water • 3 billion lack access to basic sanitation • 2 billion lack access to power

5. The Environmental Challenge • Per capita waste generated has trebled over past twenty years in developed countries • Carbon emissions have quadrupled over past fifty years • A sixth of land area has been degraded • Fish stocks down by one quarter • 350m people live in areas prone to environmental hazards • Deforestation @ 1 acre/second • Wild species extinct at a rate 50 times higher than naturally

6. Perceptions Beliefs Values Changing Reality Institutions Exogenous Rules Organizations Players Policies Institutional Physical Human Financial Social Natural The New Development Paradigm Development as social transformation and institutional adjustment A new concept of capital

7. Clean Government Sound Judiciary Macroeconomic Management Financial Sector Power Water Health Education Transport Social Dev. Culture Gender National Resource Management Rural Development Urban Development Private Sector Development A Comprehensive Development Framework

8. Past Current Future Orientation Ideology Crisis Management Results Focus Money Policy Institutions Instruments Project Adjustment Programmatic Unit of Account Project Country Global Structure Fragmented Coordination Integrated Instruments Project Program Partnerships The Emerging Development System

9. A B C F D E Equitable and sustainable development implies a mix of hierarchy, competition and cooperation Hierarchy (State) Competition (market) (exit) Cooperation (civil society) (voice) A. Government goods B. Toll goods C. Public goods D. Private goods E. Civil goods F. Common pool goods

10. The problem of objective setting and coordination is solved differently depending on the type of goods —Goods Characteristics— Oversight and Coordination Excludable Subtractable Access Private goods Yes Yes Market Market Common pool goods No Yes Voice Voice Yes No Market Hierarchy Toll goods Public goods No No Voice Hierarchy

11. Globalization has created three major gaps • Values Gap (“Great disruption”) • Institutional Gap (Rules of the game) • Organizational Gap (Governance) They need to be filled together through global partnership

12. Key global challenges require tailor made partnerships Governance - Corruption - Trade - Economic Management - Security Infrastructure - Telecomm - Power - Water - Transport Human Development - Health - Education - Nutrition - Social Protection Social Dev. - Culture - Gender - Civil Society Private Sector Development - Banking - Foreign Investment - Corporate Citizenship Environment - Biodiversity - Desertification - International Waters - Deforestation - Global Warming/Ozone Layer

13. What is partnership? • A collaborative relationship: • mutually agreed objectives • shared responsibility for outcomes • distinct accountabilities • reciprocal obligations • In business, partners: • shoulder unlimited liability for organization’s debt • assume joint management responsibility • share in aggregate profits

14. In public sector and voluntary sector, partnerships evolve gradually because: • Values need to be aligned • Partners must demonstrate commitment • Capacities must be built • Trust must be nurtured

15. Partnerships resolve collective action dilemmas • Partnerships minimize free riding • Partnerships facilitate consensus building • Partnerships are adapted to public goods production • knowledge • policy (rules of the game) • global consensus • infrastructure

16. Partnerships are critical to global stability • Economic growth and private sector development depend on public good (enabling environment, knowledge, etc.) • Social development depends on social capital creation (partnerships) • Environmental protection demands cooperation between private, public and voluntary sectors

17. Standards for partnerships • Partnership justified only if benefit exceed costs and net benefits are fairly allocated among partners Relevance = Efficacy = Efficiency = - shared values- ownership of goals- responsive to “felt needs” - realistic goals- judicious membership requirements- flexible operating protocols - economic use of resources- full accounting of benefits (including externalities)- benchmarking • Participatory evaluation, based on results

18. Mutually agreed objectives Relevance Participation Shared responsibility for outcomes Efficacy Coordination Distinct accountabilities Efficiency Specialization Reciprocal obligations Sustainability Loyalty Determinants of successful partnership • Relevance demands participation • Efficacy demands coordination • Efficiency demands specialization • Sustainability demands loyalty

19. Determinants of successful partnership • Joint elaboration of partnership mission • Full consensus on goals • Intellectual conviction demonstrated by upfront actions • Broad-based participation in support of partnership goals (outreach) • Capacity building directed to weaker partners

20. This means that there will be competition among partnerships and not all partnerships will be sustainable. • It also means that a new global governance machinery will eventually emerge.

21. The New Global Governance System will be based on: • Subsidiarity • Specialization • Pluralism • Transparency • Selectivity • Public legitimacy