Governance in Business and Government

1. Governance in Business and Government Aspects of International Governance

2. Introduction • International relations (IR) once seen as mainly an inter-governmental affair • Sovereign states the basic units in the international system • This neo-realist view increasingly challenged in the era of globalisation • Complex inter-dependence eg financial markets • Non-government actors in global system eg World Bank, multinational corporations, civil society organisations • Different systems of rule of transnational character – ‘governance without government’

3. Neo-realism • States are • single most important units • equal units • Rational • Pursue their national security interests • Unitary • Change in foreign policy results from change in international system

4. Neo-realism • The international system is • Anarchic • No sovereign above states • No world government to guarantee that law and order is upheld on a global level • States are always busy • Preparing for war • Actively engaging in war or • Recovering from war • Go to war because fear other states will attack them

5. Challenges to neo-realism • Liberals criticise the heavy focus neo-realists place on states • Other actors are important • Individuals travel more • Trade between countries • Transnational corporations • Political movements • International organisations • International transactions have increased enormously since end of Second World War

6. Complex interdependence • Now complex interdependence • Some states so integrated with others that war can be ruled out (cooperative relations) • Trade and other trans-border flows rule out military force as means of solving disputes • Means that some states not strong militarily but could be strong economically • Distinction between domestic policy and foreign policy blurred

7. Globalisation • ‘Globalisation denotes the expanding scale, growing magnitude, speeding up and deepening impact of interregional flows and patterns of social interaction’ (Held and McGrew 2000) • ‘A quiet revolution’ (Annan 1998) • Neo-realists recognise changes but don’t think they are radical • ‘Democratic globalists’ see possibility of building global governance system

8. Globalisation • Dimensions of globalization (Held et al 1999) • Political • Organised violence • Trade and markets • Finance • Corporate power and global production networks • Migration • Culture • Environment

9. State’s role in global governance • Has the policy-making autonomy of the state declined? • States have to conform to global financial markets • States’ response to global markets may be differentiated • Neoliberals argue for minimum state role in economy (provide and enabling environment for market) • Others argue that economic success has been because of state action

10. State’s role in global governance • States are the most important actors in the international system • Neo-realists: states cannot be bound by rules eg US didn’t sign Kyoto agreement, put tariffs on agricultural products • Pluralists: states bound by rules; international law of sovereignty and principle of non-intervention • Global governance is what governments can agree on

11. State’s role in global governance • There are global governance processes that go beyond states • Liberalism/solidarism includes NGOs, citizens’ movements, multinational corporations and global capital market as global actors as well as governments • Global governance is about a framework of rules to tackle global issues guaranteed by a set of institutions • Multiplication of global regimes

12. Bhutan’s international membership • ADB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, IDA, IFAD, IFC, IMF, Interpol, IOC, IOM (observer), ISO (correspondent), ITSO, ITU, NAM, OPCW, SAARC, SACEP, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)

13. Intergovernmental Organisations (IGOs) • IGOs have members which are states • NGOs have members who are private individuals and groups • Numbers of both have grown enormously • 1909 = 37 IGOs and 176 NGOs • 1991 = 4917 international organisations with 118,000 memberships • Only 18 IGOs are general purpose • Most IGOs enage in narrow range of activities

14. A classification of IGOs

15. United Nations • UN is best known international organisation • Almost universal membership • Article 1 of Charter • Maintain international peace and security; • Develop friendly relations between nations based on respect for the principle of equal rights and self-determination of peoples; • Achieve international cooperation in solving international problem,s • Centre for harmonizing actions of nations to attain these ends

16. United Nations • Involved in a very broad range of issues from conflict resolution and peace-keeping to welfare and environment (even postal services) • For example, for development • UNDP, ESCAP, UNIFEM, WFP, FAO, UNEP, UNCTAD • ILO, WFC, UNICEF, UNHCR, UNCHS, ITC • World Bank Group is under the Economic and Social Council of the UN • IBRD, IDA, IFC, MIGA

17. United Nations • Both rich and poor countries have used the UN to advance their own foreign policy goals • Has been a source of considerable aid to developing countries • Broad-based conferences favoured by developing countries • Others not so keen – ‘ill-informed participation’ by states not involved in the issue • Criticised for excessive bureaucracy, interference and beset by money woes – also seen by some as a waste of money with too much authority

18. 21st Century Innovations • Global governance in the 21st century is distinctive • Policy problems can cut across several distinct issue areas (eg HIV/AIDS; global warming) • States and IGOs no longer the only important global actors for dealing with international problems (eg NGOs, private sector, expert communities, social movements) • No single model of global governance for all issues

19. No neat categories: Internet • Who governs access to the Internet? • Who controls means of access and physical infrastructure? • Who controls functionality and technical quality? • Who controls online activities? • Previous global communication rules no use • Different parties with different interests • Internet Governance Forum (IGF) commenced 2006 – annual meetings - recommends

20. Proliferating actors: The Global Fund • UNAIDS used a network approach to HIV/AIDS involving public, private and non-governmental actors • Dissatisfaction among partners led to rethink • The Global Fund aims to fight malaria, TB and AIDS • Independent institution • Multiple stakeholders for public, private and NG • Multisectoral participation from funding to implementation

21. Organised chaos: Kimberley Process • Kimberley Process Certification Scheme (KPCS) commenced 2003 • To halt production and trade in illicit ‘conflict’ diamonds • Minimise government revenue losses • Involves states (74), private sector and NGOs • Introduces validated certificates of compliance for diamond shipments • Government commitment questionable in some countries

22. Future Challenges • There are 3 leading challenges for institutions that address global governance issues • Legitimacy • Accountability • Effectiveness