Saving Multilateralism

8/9/2019 Saving Multilateralism

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p a p e r s e r i e s

saViNG MULTiLaTeraLisM

RENOVATING THE HOUSE OF GLOBAL ECONOMIC GOVERNANCE

FOR THE 21STCENTURY

JeNNifer HiLLMaN

The German marshall Fund oF The uniTed sTaTes


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2010 Te German Marshall Fund of the United States. All rights reserved.

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Te German Marshall Fund of the United States

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E [email protected]

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view of GMF. Comments from readers are welcome; reply to the mailing address above or by e-mail to [email protected].

About GMF

Te German Marshall Fund of the United States (GMF) is a non-partisan American public policy and grant-making institu-

tion dedicated to promoting greater cooperation and understanding between North America and Europe.

GMF does this by supporting individuals and institutions working on transatlantic issues, by convening leaders to discuss

the most pressing transatlantic themes, and by examining ways in which transatlantic cooperation can address a variety of

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Europe: Berlin, Bratislava, Paris, Brussels, Belgrade, Ankara, and Bucharest.

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Brussels Forum is an annual high-level meeting of the most inuential American and European political, corporate, and

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Renovating the house of global economic governance for the 21st century

Bussls Foum Pap Ss

Mach 2010

Jennifer Hin*Te Gern Mr Fnd f e Unied Se

Inrdin: Cin wi Cexiy 3

Sid Fndin: Te Ariere f Gb Eni Gernne 6

Te Gre Reein nd e Seerin Ciee f e Wrd Eny

Te IMF, Wrd Bnk, nd WTO: Fr Crii Refr 5

Grdin f Gb Finne: Te Inernin Mnery Fnd 7

Fr Renrin Deeen: Te Wrd Bnk

Neiin e Re: Te Wrd Trde Ornizin 4

Renin e He f Gb Eni Gernne fr e Cenry 7

Te Hrbiner f Gb Gernne: Pii Lederi nd e G 8

Reffirin Mieri in Wrd f Reini 3

Trnni Mieri fr e Cenry 33

Cnin 37

Bibiry 38

*Jennifer Hin i enir rnni few e Gern Mr Fnd f e Unied Se nd rren eber f e Wrd TrdeOrnizin Aee Bdy Preiy, e ered iiner e US Inernin Trde Ciin nd ener ne ndief exie neir e Offie f e US Trde Rereenie Te r wd ike nk Je Ginn, Rn Bin, Dn Prie, PeerSrdin, Debr Seer, nd Ki Sinen fr eir e wi i er


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Rovatg th hous o gloal coomc govac o th 21st ctu3

The long-term

trend toward

increasing

complexity

combined with a

waning faith in

multilateralism

and multilateral

institutions

makes it nearly

impossible to

reach traditional

binding

multilateral

accords.

Introduction: Coping with Complexity

L Deeber, e eye f e wi ke in inernin ffir rned Ere

Fir ey ked Gene, fr in e

n-rnnin D Rnd f ier rde

neiin e Wrd Trde Ornizin

(WTO) wd e bk n rk fer yer f

ee Ten berer rned Cenen,

in ee bindin nd reenie

reeen refein ien n e r f

e wrd ernen ddre e rein

b ene f ie ne Tey were

be rey diined Inribed n e fe f

e rin re reeen w deefrrin wi ier ree were

rin inbe f deiery Ined f reeen,

e ie yin n eeiin reen nd in

newer rnd e wrd were f frine

nd diiin, de in r e re nber f

riin nd nenine f e ie

fed; f ner, n e r f e w fe

rinized by e re; nd f nern, fr

e kin fr in e wrd i e

iy re rd wen i rey er

Te fire f ee eein rde frreeenr een eifi rein

reeen in e fredeie e i ke

nd e ii i d been ineed in

dne ef ny qeinin e biiy f e

wrd eder ee b ene, eddin

i n e iniin nd fr were

ebied fr e re f iein ier

in e rein eie rbe

f e enry

Wy did ee eein fi? Mny d ed

e inifin eni rii ine eGre Derein nd e erwein ienifi

nd irni eidene f din ne

r ie wd e wrd eder

e ide eir differene nd re eninf

reeen B i did n en I i n e

rbe re n bi en r ren en Te

fire re reeen n be be een rf n-er rend wrd inreed exiy

in e wrd ke i nery iibe

re rdiin ier bindin rd,

bined wi wnin f fi n e r f

ny nrie in ieri nd ier

iniin

Ti inreed exiy e fr nber

f eii if in inernin reinnd

eeiy in inernin economic rein

e f wi e been nfdin er e

re f dede wie er re f re reenriin Gernen iie nd inernin

rrneen fr eie deiin-kin

e n ke e wi ne in e wrd,

eeiy e i deree f inernin

eni inerin nd inerdeendene Wi

denizin e inree in e nber f

nrie w re yer n e wrd e

we rebnin f b eni wer

nined wi e rie f e BRIC (Brzi,

Ri, Indi, nd Cin) nd e er eerin

rke enie Te e f e Sie

b, nied by rke refr in Cinnd Indi in e 98 nd 99 eered e

rid inerin f e b eny Were

reiy ny b f e wrd in

e Orniin fr Eni C-erin

nd Deeen (OECD) nrie, r f

Lin Aeri nd Aiwere ened in b

eni iiy, ddeny ee eerywere

were br eer in ine wrd eny

bed n ii nd rke

A e r-ee, i ed ifin rde

fw nd ern f frein dire ineen, rie in e nber nd ize f inin

nie nd finni iniin, nd rin

b dend I en rrendin

inree in e eed wi wi d,

ney, nd eny rere e be A

e ir-ee, e re dbin f e

1


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Th Gma Mashall Fu o th Ut Stats4

The inability

to create new

institutions or

reach agreements

means greater

reliance onand

greater need

for renovation

ofthe existing

international

economic

institutions, the

IMF, the World

Bank, and the

WTO.

b wrkfre d dire effe nwe, ine ee, nd eyen in e

dned indri nrie, in e inne

rin fer f eni ineriy nd

bi bk in bizin

Tken eer, ee fr e reed e

iy f e rren iniin f ier

ernne brekin in, edin

frenin nd e eerene f dee diiin

n r f nrie differen e f

eni deeen Trw in e inree

in e exiy f e ie eee nd ederee wi ee ie er nd ffe ne

ner nd e rbe f e enry bein

k ex nde

Ti er re ernin ere in i

y re ex wrd wi reqire re

ieri, n e I en reer reine

n eer n e eni iniin nd

fr e redy erned fnin in

b finriry e Wrd Bnk,

e Inernin Mnery Fnd (IMF), nd e

WTO I nend rein new inernin

iniin r bindin rd i nery iibe

in dy wrd, nd exine were e exiin

iniin nd dy nd e ne wi be

neery if ey re fr e re f n effeie

b eni riere fr e enry

Sendy, e er exre e rbe reed

by e k f fi in ieri, riry

n e r f ny deein nd eerin

rke nrie, w eier dn wn rey n

e ier iniin deined in byne

er wen e rnni wer dined e

wrd r w find eir eni need n be

re eiy ddreed r bier r rein

reeen rer n wrkin r e fen

Rird B Freen,America Works: Critical Thoughts on theExceptional U.S. Labor Market(Re Se Fndin, 7)

re bere ree e ieree Deie new ieri reiden in

e Unied Se, e en in e wrd f

b ernne dy i in e wrn direin,

be fnd in e ndred f rein, b-

rein, nd bier reeen e e

in fre in e eer dede Wi e

reeen e eenin f e enery,

ie, nd rere ef fr ieri nd

ier iniinn wi e rd f

e e b rbe rein n

e be, ned nd inbe r

rein rrneen

Tird, e er nend , in e bene f

ny re f bidin new b eni

riere, e exiin iniin f ier

eni ernne be rened Teir

ernne rre need be ned refe

e dri if in e diribin f eni

wei n nrie, eir nde reied

in rder enre ey er wider rne f

ie b wi beer erene n e, nd

ey be ded in e fe f riferin

reini, wi if wrd dinnd inrrin rein rd wiin

ier frewrk

Ti er nend wie ee ne

re b dnin nd eeni if e iniin

re e e effiieny, effeiene, nd

eiiy ey reqire, ey re in f we wiin

e r f e rren wrd ye We re

n, in er wrd, in 944 ene

niin-kin e wen e Unied

Nin, n wi e Wrd Bnk, e IMF, nd

e redeer e WTO were reed rey f we Nr d we need be in

en in rder iee b eni

riere be f eein e need f

e enry Te rren rii, e in

eer f wrd eder r e eein

f e G, nd n nderndin f e


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fiin f e rren inernin eniiniin be en e ee

-needed renin f e ye

Finy, ederi wi be needed

fr nrie rnd e wrd, e er

nde by ein e re Ere

nd e Unied Se y if ey re

e e w eer ey red 65 yere iniin f ier eni

rder reed brin b b ee nd

reriy fr , wi ien ink

nd by wen ddrein e

rein eni rbe f e dy


8/43


The UN bore

responsibility

for issues of

diplomacy,

security, and war;

the World Bank

for international

development and

the reduction

of poverty; the

International

Monetary Fund for

financial stability

and economic

cooperation;

and the GATT,

precursor to

the World Trade

Organization, for

trade liberalization

and institutional

stability in the

world trading

system.

In 944, in e wd f New Hire, wie end f Wrd Wr II redy in i, n

exrrdinry e f erin rred, brinin

eer n rry f ernen ffii we

iin fr beer fre w ed by e rd

en f e 93 Rejein e ri

ber-y-neibr iie f e jr

eni wer d ened e ide

in wrdwide derein nd wr, ee bi

ern dedied eee ined e

rein f re-bed inernin eni

rder wd ere e bi fr ee nd

reriy Oer e re f e Bren WdCnferene, e beqen Dbrn Ok

nd Sn Frni eein, nd e n

fwed, ey neied f nd reed e

rer fr fr jr inernin iniin

e Unied Nin (UN), e Inernin Bnk

fr Renrin nd Deeen (Wrd

Bnk), e Inernin Mnery Fnd, nd e

Inernin Trde Ornizin (ITO)

A eir inein, e f e jr inernin

iniin yed eified re Te UN bre

renibiiy fr ie f diy, eriy, ndwr; e Wrd Bnk fr inernin deeen

nd e redin f ery; e Inernin

Mnery Fnd fr finni biiy nd eni

erin; nd e GATT, rerr e Wrd

Trde Ornizin, fr rde iberizin nd

iniin biiy in e wrd rdin ye

Tee iniin, wie fr fr erfe, e

dne i eir fnden

In i f e reend rere fr

rnd e wrd re dei rke

Te UN, IBRD (Wrd Bnk) nd IMF e in beinwi ie dey Hweer, e n e ITO wi brd nde d be bndned in 95 wen e TrnAdinirin nnned i wd n eek rifiin fe Hn Crer de k f r in e US CnreIned, in 947 er r f nrie neied eGener Areeen n Triff nd Trde (GATT), wi wrnfred in 995 in e Wrd Trde Ornizin (WTO)

nd jb, e GATT/WTO nd i re nddiiine e ke n brek f Derein-

er reini by fr f enry, nd

ei rnd f ier rde neiin

e reed in widered iberizin f

rde e in indri rd n

indri nrie Te UN, wie n iein

e ie f brinin n end wr,

dne nin rie, ee rein

nfi, n eekeein iin, erdie

diee, nd wrk reeen n eeryin

fr n ri nenin e e f e

ebed nd f er e Siiry, e WrdBnk, wie n eiinin ery, een

e rin f e wrd in iin in

ery deine fr 4 eren yer

eren dy, n wi ridin n nd

deeen ine in re n 6 nrie

nd riiin in iniiie n eeryin

fr bin HIV/AIDS bidieriy

edin nd deb reief fr e re nrie

Te Bnk i rify ended fr i biiy

rie nd nne rere fr deeen,

fr i iy-rined ff, nd fr i de f

knwede b deeen reie ndre r nry bndrie3 Te

IMF, wie i eed niderby fr i

inii dy f nirin derene e r

e ye f fixed exne re, de

irn ne i key inren

reine, endin, nd eni ine

win i nin nber f finni rie,

nine nein endin were neery,

nd jin e fi in exree ery4

3 Rewerin e Wrd Bnk fr e Cenry Report ofthe High-Level Commission on Modernization of World BankGroup Governance (e Zedi Ciin Rer), O9, 9

4 Rdri de R, frer nin direr f e IMF ke iew befre e 8-9 finni rii fndenrefr e IMF w n needed, rin e IMFd eed er i 6 yer r enden i keyinren wie reinin re i re f ferininernin eni erin, rin riin reriynd ferdin b finni biiy Rdri de R, Ie IMF Mnde Si Reen? Global Agenda, Jn 5

Solid Foundations: The Architecture of

Global Economic Governance2


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Fr eir r, e Unied Se nd e ebere f e Eren Unin e been n

e ie nd ened riin in

ee iniin Ti i nrriin, ien

e re e rnni rner yed in

rein ee iniin nd e inere ey

were riiny inended ere A b,

e wr b eni riere w

ebied en ie e We eer

in e eerin Cd Wr nex r eiberizin f inernin rde nd i

fw Fir r e iniin f e Bren

Wd ye, nd en r e Mr

Pn, e Unied Se w be rebid e

ered rdin iy nd finni

rke f Weern Ere Fr e Unied Se,

e erridin re w er: e ii-

rei need bid bwrk in

Table 1. The architecture of global economic governance

International Monetary Fund(IMF)

World Bank World Trade Organization (WTO)

Began with: 44 members

Now: 186 Members

Began with: 44 members

Now: 186 Members

Began with: 23 GATT parties

Now: 153 Members

Mandate:

Promotes international

monetary cooperation

Macroeconomic surveillance

Promotes exchange stability

Develops multilateralsystem of payments

Makes resources available

to members experiencing

balance of payments

difficulties.

Mandate:

Evolved from facilitator of

post-war reconstruction and

development to mandate of

worldwide poverty alleviation

Promotes long-term

economic development

by providing technical and

financial support

Funds loans through

member country

contributions and bond

issuance

Mandate:

Forum for trade negotiations

Handles trade disputes

through dispute settlement

process

Monitors and implements

trade agreements

Technical assistance and

training for developing

countries

Cooperation with other

international organizations

Revenue: $325 billion in quotas

contributed by members (as of

3/09)

Revenue: In 2009, IBRD raised

$44.3 billion. In FY 0911,

commitments of $41.7 billion

made available to IDA

Revenue: Administrative

budget of $173 million, paid

by contributions from members

based on a share of world trade

Loans or grants: $175.5 billion

in loans committed, of which

$124.5 billion not drawn (as of

9/09)

Loans or grants: $58.8 billion

in total commitments (loans,

credits, guarantees, and grants)

in 2009

Loans or grants: $28 million

of training and technical

assistance provided; support for

Aid for Trade initiatives

Source: IMF, World Bank, WTO websites


10/43


Cni B i ered US enief-inere: inifin rin f Mr Pn

id effeiey wen b Eren dend

fr d fr e Unied Se, ein e

ff dei fer f wr r renew

f e Gre Derein Oer e edi er,

e Bren Wd ye eed ree frein

rke fr e Unied Se by njrin

idde in US eni rner rnd e

wrd, ein fr wi e Eren

ne ey were bk n eir fee fwin e

Mr Pn nd e renrin rr

f e Ornizin fr Eren EniCerine been be benefi

Tdy, by wy f irin, nery ne-ird f

US nd EU exr re deein nrie

were e Wrd Bnk endin rr

By eer ebiin e re nd ndrd f

nd by wi e b eny i erned,

e Unied Se nd Eren Unin bee

e ewrd f e inernin eni rder,

rnnin e ye fr f e wr

er In rern, e ree ir f e b

eni riere ey ebiederine finni ide f enie (IMF), rde in

d nd e re ide f enie (GATT/

WTO), nd inernin deeen nd

ery eiin (Wrd Bnk)e deiered

enr eni benefi eir fnder

Deie in ene, e ye

fred we I rided biiy nd rke

enin, reiey be frein exne re,

e redy ibiiy f i, nd fr fr e

rdinin f reni iie Beween

e fir GATT rnd in 947 nd e n f e

D Rnd e WTO in , inerninrde inreed enry, by re n fd

Gb finni fw e rwn by i reer

n Te inerin f e wrd eny

reeded e, reed by freed fi een, e deeen f new nd

exndin rke, enie f e, eer

re f y f rw eri nd finied

d, e inernin irin f br, nd

eni dne in rdin ree,

rnrin, nd niin

Te ey f i iry i e Unied

Se nd Ere enjy ized nr e

Bren Wd iniin B benefi fr e

nwrien re e reiden f e Wrd Bnk

i wy n Aerin, wie e nin direrf e IMF i wy Eren Seen f e

en nrie re errereened e IMF

(in er f e differene beween eir IMF q

re nd eir re f wrd GDP) re Eren

B e Wrd Bnk nd e IMF e brd f

4 exeie direr, wi f e exeie

direr ekin fr (nd in fr) r

f nrie Fie nrie, weer, e eir

wn ined e: e Unied Se, Gerny,

Frne, e Unied Kind, nd Jn In

ddiin e Gern, Fren, nd Brii e,

e 4 er eber f e Eren Unin re

r f e r f nrie rereened by een

er exeie direr, ereby iin Ere

ree exie e nd inifin reene in

een er A , e EU eber e n

infene 3 eren f e e e IMFnd

iir ( n exy eq) nber

e Wrd Bnk A e WTO, e Unied Se

nd Ere e rdiiny de w f

e -ed qd nrie (e Unied Se,

Eren Unin, Cnd, nd Jn) fr

n ie were iewed e deker fr nyrde reeen, wi e re f wrd w

exeed iy in n

The legacy of this

history is that

the United States

and Europe enjoy

outsized control at

the Bretton Woods

institutions.


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Savg Multlatalsm


Under-represented Countries Over-represented Countries

-6.00 -5.00 -4.00 -3.00 -2.00 -1.00 0.00

China

United States

India

Brazil

Mexico

Turkey

Russia

Iran

KoreaSpain

Indonesia

United Arab Emirates

Poland

New Zealand

Japan

Romania

Thailand

Slovak Republic

Bangladesh

Morocco

KazakhstanGreece

Nicaragua

Czech Republic

Colombia

Saudi Arabia

Germany

Belgium

France

Netherlands

United Kingdom

Switzerland

Canada

VenezuelaSweden

Denmark

Italy

Norway

Austria

Kuwait

Libya

Iraq

Nigeria

Singapore

Finland

Ireland

MalaysiaChile

Zambia

Algeria

0.00 1.00 2.00

Difference between IMF

Quota Share and Share

of World GDP (%)

Non-EU States

EU Member States

Figure 1. Under- and over-representation at the International Monetary Fund

Notes: 25 IMF members with the smallest and largest differences between IMF quota share and share of world GDP. GDP is adjusted

for purchasing power parity (PPP).

Source: Rebecca Nelson, The G20 and International Economic Cooperation: Background and Implications for Congress,Congressional Research Service, Dec. 9, 2009.


12/43


Wi e brin f e in bbbe in eUnied Se in 7 nd e rin f een

ed e debiizin f e b finni

ye, e wrd eny ed in

ee reein in e fin qrer f 8, wi

b re GDP drin 6 eren nn

re Ti i ndbedy e re deine in

wrd nd eeiy in wrd indri

rdin nd wrd rdef e wr er

Wrdwide exr eed fr $6 riin

in 8 $ riin in 9, dr f er 3

eren Viry nrie were ked in

e dwnrn, wi e wrd winein e firinifin deine in wrd re GDP (f nery ne

eren) in ix dede

Te f ry f wy i e rred i

i bein wrien, b i r wi f n

deeen in e Unied Seeeiy e

exnin nd beqen e f e re ee

nd re ee finnin bbbe nd i i n

n ereered US nd b finni ye

Add e e e n f erieny ey

nery iie, ery w inere re nd

inere re red, nd ener direrd frwin rik in e finni ye, nd e key

e bein e in f Oer wd

in e rren n in nd reere

in in Ai, riry Cin, nd

e irrr-ie defii in e Unied Se

ner jr nderyin e f e rbe

Ti Gre Reein f 89 eed e

inernin eni iniin neer befre

In rene, e IMF eed i re

ender f rer, ridin finni r

ke (n er) Iend, Ukrine,Hnry, Pkin, Ber, Serbi, Areni, E

Sdr, nd Li, nd exended redi

Mexi, Pnd, nd Cbi nder new

fexibe redi ine In rder beer eqi e

Fnd fr i k, G eder eir Lndn

i in Ari 9 eded rie e IMF

endin iy $75 biin Addiiny,ey red e Fnd inenify i eni

reine nd ery wrnin ye

Te Wrd Bnk ed exnd

nd eed endin, ine, nd die

deein nrie, iin rerd i f

nery $6 biin nrie i by e finni

rii in fi yer 9n inree f 54 eren

er e rei yer An ddiin $83 biin

w biized r f e Wrd Bnk b

rii rene iniiie een e i f

e rii n e nerbe, eeiy inw-ine nrie Tee iniiie f

n fey ne rr re e

nerbe, ininin n-er infrrre

ineen rr, nd n inin e

eni fr rie er-ed eni rw

nd eyen rein, riry r e

r f nd edi-ize enerrie

Te WTO fr i r ben new nirin

nd rerin eni n reini in

ken by WTO eber nd wrked enre

rke reined en nd nrie

dered eir WTO ien Te WTO

ed G eber kee eir ede f

r fr Aid fr Trde iniiie nd wrked

enre rde finne reined ibe nd

ffrdbe

Te end jr yei rene e Gre

Reein been e rnfrin f e

ie-knwn G erin f finne inier

nd enr bnker in n ffir inin

ed f e, dered by ee eder be

e reier fr fr inernin eni

erin5 Te G red in 999 in e

wke f e 997 Ain finni rii fr

br eer finne inier fr

5 Te Pibr Si: Leder Seen, rr 9We deined e G be e reier fr fr rinernin eni erin

The Great Recession and the Steering

Committee of the World Economy3

The second

major systemic

response to the

Great Recession

has been the

transformation of

the little-known

G20 into the

premier forum

for international

economic

cooperation.


13/43

Savg Multlatalsm


jr dned nd eerin enie wie f biizin b finni rke

Wi i endny r f e rene e

Gre Reein, i nw ned e G7/

G8 eein e ief eerin iee f

e wrd eny6 Te inin in e G

f nber f nrie beynd e iri

G7/G8 rin n db eed, e in

r, fr reniin f e rwin wer f

e eerin rke nd deein nrie,

w nw n fr re n 4 eren

f e wrd eny T e ny ene f

eiiy r e wrd nd riryn e eerin rke enie,

exnin f e ederi ire w rii

Hweer, e inii G Leder Si, ed in

Winn in Neber 8, w ein f

n EU-US jin enre Brii Prie Minier

Grdn Brwn d been in fr Bren

Wd II eey reie b eni

ernne, nd e Unied Se rended by

rin e ide f G erin, eeed

e ee f ed f e, nd exended e

iniin fr n inii eein in WinnEren eder fir exibied differene f

iewin n i r, wi Fren Preiden

Ni Srkzy needin be nined f e

rriene f e G ene, ien

EU eber e d fr f e een e (57

eren) e G7 b ny e e fr e

ne fr e Eren Unin (5 eren)

e G B in e end ere w ene

f e G e ny ibe fr wi e

e f eberi reqired dee ide,

re nen n eir deirbiiy, nd wrk

ieen e

6 C Fred Beren, Peern Inie fr InerninEni, A Berin fr Gb Lederi in e Tweny-Fir Cenry, Keyne See e Gb Hn RereFr, Se, Kre, N 4, 9

Te ein f e G ed n einin e Eren r i Effr

were de rir nd fer e eein e

Ere-wide iin, wi e Eren

Cni din nber f rinie fr in

were reeen d be reedriniy

in e re f ennin nd rein nd

refrin e inernin finni iniin

Te Eren Ciin w ien e k f

deein r fr reenie refr

f e finni ye, wi were en endred

by e Eren Cni nd red n e re

f e G eder by Eren ed f eTr ee effr, Ere needed find

n rnd n ein iin, wi

e Unied Kind rin fr re i

fr er ernen, Gerny eizin

e need id jr bde defii, nd Frne

in fr jr dwn n exeie

enin nd ener ienin f finni

rein Te Unied Se jined e Unied

Kind nd Jn in in fr re i

fr er wie iniiy reiin ny if f

finni rery iy f e nd f

nin rer

W eered fr ee G i i firy

rerkbeb in er f e bne f

e nen w reed nd in er f

e re Deie rky differin iew n

w ie eni rw nd reery,

reeen w reed re n $

riin in e b enybei r

e IMF, rer n indiid nriein e

fr f $5 biin in new endin iy, $5

biin in new Sei Drwin Ri, nd $5

biin in rde finne Serey, e G ered ien by indiid nrie fr fi

exnin wd $5 riin er w yer

Dend fr e Eren nrie fr

jr enin f e rein nd eri f

finni iniin were e r e rein

The inclusion

in the G20 of

a number of

countries beyond

the historical

G7/G8 grouping

partly stems from

a recognition

of the growing

power of the

emerging marke

and developing

countries, who

now account for

more than 40

percent of the

world economy.


14/43


G20 member countries

EU countries not

individually represented

in G20

Not members of G7

Legend

G7 member countries

Not members of G7

Legend

Table 2. Numbers count: From the G7/G8 to the G20

G20/G20 + non G8 EU

Country GDP (millions

of dollars)*

% of world

GDP

Argentina 324,767 0.53%Australia 1,013,461 1.66%

Brazil 1,572,839 2.58%

China 4,327,448 7.10%

India 1,206,684 1.98%

Indonesia 511,765 0.84%

Mexico 1,088,128 1.79%

Saudi Arabia 469,426 0.77%

South Africa 276,764 0.45%

South Korea 929,124 1.53%

Turkey 729,983 1.20%

Subtotal 12,450,389 20.44%

G20 total 46,512,592 76.35%

EU (27)1 18,387,785 30.18%

G20 + non-G8

EU countries2

53,366,428 87.60%

1 EU 27: Austria, Belgium, Bulgaria, Cyprus, Czech Republic,

Denmark, Estonia, Finland, France, Germany, Greece, Hungary,

Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands,

Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden,

United Kingdom.

2 Non-G8 EU members: Austria, Belgium, Bulgaria, Cyprus, Czech

Republic, Denmark, Estonia, Finland, Greece, Hungary, Ireland,

Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland,

Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Source: G20 website; www.g20.org

G20 Members

G7/G8

Country GDP (millions

of dollars)*

% of world

GDP

Canada 1,499,551 2.46%

France 2,866,951 4.71%

Germany 3,673,105 6.03%

Italy 2,313,893 3.80%

Japan 4,910,692 8.06%

United

Kingdom

2,680,000 4.40%

United States 14,441,425 23.71%

G7 32,385,617 53.16%

Russia 1,676,586 2.75%

G8 34,062,203 55.92%

EU countries

in G8

11,533,949 18.93%

* 2008 GDP

Source: IMF World Economic Outlook Database (Oct. 2009)

G7 Members

Source: G20 website; www.g20.org

EU G8: France, Germany, Italy, United Kingdom.


15/43

Savg Multlatalsm


f Finni Sbiiy Brd (FSB)7

Te FSBw deined brin b reer rdinin

nd ere f rery ye inde

ede fnd, rinie n y nd enin,

nr n exeie bnk eere nd bnk

erey, nd eri f nin ndrd nd

redi rin enie Te in fr Bren

Wd II nd rein f e iniin f

ier eni ernne were e

e fwy: ere w een reeen n e

US r inree e IMF q re f

e eerin rke nrie by fie erene

in, n wi n inree in e in werf deein nd rniin nrie e Wrd

Bnk f e ree eren nd ien

refr e nde, e nd ernne f

7 Te Finni Sbiiy Brd w ebied e LndnG Si er e Finni Sbiiy Fr,wi w reed in 999 by e G7 finne inier ndenr bnker fr re rdinin ndinfrin exne n e renibe fr finnibiiy Te FSF w de f finni rer fr eG7 nrie, Ari, Hn Kn, Neernd, Sinre,nd Swizernd, we inernin finni iniin,inernin rery nd eriry rin, iee

f enr bnk exer nd e Eren Cenr BnkWen e G eder rnfred e FSF in e FSB, eyexnded i eberi inde 64 riin Gnrie, Hn Kn SAR, e Neernd, Sinre,Sin, Swizernd, e Eren Cenr Bnk, nd eEren Ciin Tey inifiny exndedi nde inde een f nerbiiie in efinni ye, nirin rke deeen, diinn be rie in eein rery ndrd nd eebien f ideine nd r fr eriryee US Trery Serery Tiy Geiner deribede FSB fr ir e riere f erinebied fer e end wrd wr referrin eIMF, e Wrd Bnk nd e WTO, nin i exein e FSB wi e i b finni ndrd ndd FSB eber nbe e ndrd

e finni iniin, wie Ere deire kee e nber f e n e Exeie Brd

f e IMF nd e Wrd Bnk 4 w e Te

WTO w inded in e er G eein, nd

w ien e k f nirin G ede n

ke ny reini in nd ee e

D Rnd f rde neiin8

A ern ben eere fr e G i

wereby e ed f e wd in k

e ier eni iniin reed

eifi ie, wi inrin rer bk

e nex eein f G eder Wie erene e inii Winn i w n

ireie, wi rke rnd e wrd fin

inifiny fer i nin, e in

by e ier iniin nd ernen

rry eir ined k red ke

e, e rein e beqen i

w re iie A f inere i e

eerin re by wi direeen n,

fr exe, jr Eren yer ike Gerny,

Frne, nd e Unied Kind, r beween

Ere nd e Unied Se, were brkered by

er G eber, wi Indi r Cin r Brzierin i re f referee nd niir

8 Te WTO re rere nd reribed iriiy ern nrin n i biiy effeiey ne nd eeber fr din reini ere A nber findeenden nir, rineny Gb Trde Aer(GTA), wwwbrdeerr, e eed in nyzereini ere in brder definiin f wnie reini in Wi rerd e G ede refrin fr riin new brrier ineen r rdein d nd erie, GTA fnd , n ere, Geber d brken e n-reini ede eery reedy in e yer fwin e Winn Leder Si


16/43


Table 3. G20 leaders summits: Pledges and commitmentsG20 Leaders

Summits

Pledges/Commitments

Washington,

November 2008

Adopted 5 principles for reform relating to transparency, accountability, and enhancedregulation of f inancial markets, products, and participants, including credit rating agencies,with an action plan for their implementation

Pledged to coordinate regulatory reforms internationally

Committed to reform Bretton Woods Institutions to reflect changed economic weights in theworld economy, but no specifics

Pledged to use expansionary macroeconomic policies, both fiscal and monetary, to stimulateaggregate demand and encourage economic growth

Committed to refrain from protectionist trade policies and to strive to reach agreement on

the Doha Round of WTO talks.

London,

April 2009

Reiterated commitments of 2008

Creation of Financial Stability Board (FSB) as successor to Financial Stability Forum with allG20 countries, FSF members, Spain and the European Commission as FSB members, set upto establish and enforce high global standards for financial regulation and monitoring

IMF: Pledge to increase funding for the IMF and MDBs by $ 1.1 trillion, including a tripling ofthe IMFs lending capacity by restocking the IMF with $500 billion and creating $250 billion ofnew Special Drawing Rights.

World Bank: support for increase in lending of at least $100 billion and implementation of2008 reforms

Commitment to conclude an ambitious Doha Round and to avoid protectionist measures

Pittsburgh,

September 2009

Agreed on a Framework for Strong, Sustainable and Balanced Growth to coordinate

and monitor national economic policies to correct the current global imbalances andprevent future such imbalances, with some peer review and some IMF oversight of thismacroeconomic policy coordination

Specific plans to increase the representation of emerging-market countries at the IMF byincreasing their quota by five percentage points to 43% of the total and similar initiatives atthe World Bank

Commitment to crack down on financial institution excesses, including raising capitalstandards, implementing international compensation standards and adopting frameworks forcross-border resolutions of failed institutions

Commitment to conclude the Doha Round by the end of 2010

Participants Washington: Argentina, Australia, Brazil, Canada, China, France1, Germany, India, Indonesia, Italy,Japan, Mexico, the Netherlands2, Rep. of Korea, Russia, Saudi Arabia, South Africa, Spain2,Turkey, United Kingdom, United States

Ex-officio participants: European Commission (President), World Bank (President), SecretaryGeneral of the UN, IMF (Managing Director), Financial Stability Forum (Chairman)

London: All Washington participants plus Czech Republic3 and ex-officio participants: Chair ofNew Partnership for Africas Development (NEPAD), Chair of Association of Southeast AsianNations (ASEAN), WTO (Director-General)

Pittsburgh: All participants from London with Sweden3 representing the EU Council rather thanthe Czech Republic

1 Representing EU Council and themselves2 Permitted extraordinary presence3 Representing the EU Council

Source: G20 website, www.g20.org


17/43

Savg Multlatalsm


Wi e eie we f eni rii i e wrdfr e Ain edwn in 997

Ri rbe rii in 998 e e f

Arenin in 999 nd ere been

beqen rren f nd-wrinin, -re

nyi, nd fr refr e riere

f b eni ernne in rder eed

reery nd reen rie fr rerrin

Eqy ein been we f redie

fr e ni in e Indin Oen Hrrine

Krin in 5 e endrin ery r

f Afri e eed e wrd

biiy rend, nied by fr beer r deeen nined in

ny beein bk r rinen iin

rer On e rde frn, e WTO k ener

e n n fer i rein, wen rer

nbered deee i Minieri eein

in See in 999, ein reeden fr ii

dirbne eein f e WTO, IMF, nd

Wrd Bnk eer ine Oer, e rin

fr refr reed reend wi e Gre

Reein f 8-9, wi red

nber f ede fr ii eder ern

fr e ike f e nd refr eb eni riere ee e ene

f e enry

Te ri fr refr e in-ined

rbe f reene, effeiene, nd eiiy

Wnin relevance in e e f e IMF been

deeed re f e endne f rie

i rke; e Wrd Bnk, re

f e rie f Cin nd er new eni

wer enin in infrrre deeen;

nd e WTO re f e riferin f

rein rde reeen Wnin effectiveness e IMF i i direed e Fnd inbiiy

ke b ibne nd i iin

ree in bi; e Wrd Bnk i been

idenified in rein e inbiiy bniy

ire ery re, riry in Afri, rdeqey ddre enirnen, n ri

r rrin nern, n wi ereied

iin ree; nd e WTO i rien fr

e inbiiy nde e D Rnd deie

e nine yer e ed ine k ben

in Neber Finy, wnin legitimacy

been dined b e IMF nd e Wrd

Bnk re f e k f in wer r

q ee ed by eerin nd deein

nrie nd e erein e iniin

re nred by ndf f wey nrie

ie ndiiniy n er b neee; e WTO, i rie fr ereied

k f rnreny in i erin bined

wi nern e nen-ny deiin

kin re y be ein in wy f rein

nin, nd fr nndin fire

enre e benefi f free rde re re

eeny diribed9

9 M wrk n refr r d been dne we befree G Si See, fr exe, Wrd Trde Ornizin

(4), The Future of the WTO: Addressing InstitutionalChallenges in the New Millennium: Report of the ConsultationBoard to the Director-General Supachia Pantichpakdi(eSernd Rer); nd e rer f e IMFIndeenden Ein Offie, Governance of the IMF: AnEvaluation, 8 In ddiin e wrk f iin,ere e been ne bk nd rie wrien, ny fwi re ned in e bibiry e end f i rie Keyn e wd be Losing the Global Development War, JnW Herd, 8; Reforming the IMF for the 21st Century, EdwinM Trn, 6; Redesigning the World Trade Organization

for the 21st Century, Debr P Seer (); Studies of IMFGovernance, Rben Ldny nd Lenrd Diz Mrinez(9); The IMF and its Critics, (4) nd The World Bank:Structure and Policies () Did Vine nd CrierGiber; Refrin e Wrd Bnk, Jei Einrn,Foreign Affairs, Jn/Feb 6, V 85, Ie , nd The IMF,

World Bank and Policy Reform, Aber Pni nd MriziZnrdi, Rede Sdie in Deeen Eni, 6In ddiin, nber f r e been fred deed refr f ee iniin, indin Te Bren WdPrje (wwwbrenwdrjer), New Re fr GbFinne Ciin (wwwnew-rer) nd Te Fr Pir(wwwfrirr)

The IMF, World Bank, and WTO:

From Crisis to Reform4

The various calls

for reform have

focused on a

perceived lack

of relevance,

effectiveness, an

legitimacy at the

IMF, the World

Bank, and the

WTO.


18/43


I i in e fe f ee ene Geder e ed fr refr e inernin

finni iniin Tee refr wi ririy

f n ne eir nde, e, nd

ernne refe e inrein exiy in

e wrd nd ne in e eni wei f

e ri yer In ddiin, e refr wi

ine reer rdinin nd erene

n e ree eni iniin, n wi

e newy reed Finni Sbiiy Brd

Iii in ri fr refr i reffirin f r by e G eder fr

ier r eni rbe

nd fr inreed reine n e ier

eni iniin e e e S

inree wi neeriy ine findin wy

ierize ny f e exiin rein

reeen in e e f e wrk

f ee iniin Eqy iii in e G

eder een i r fr e nin wrk

f ee exiin iniin f b eni

ernne

In the wake of the Second World War, it was America that largely built a system of

international institutions that carried us through the Cold War. Leaders like Harry

Truman and George Marshall knew that instead of constraining our power, these

institutions magnified it.

Today its become fashionable to disparage the United Nations, the World Bank, and

other international organizations. In fact, reform of these bodies is urgently needed

if they are to keep pace with the fast-moving threats we face. Such real reform willnot come, however, by dismissing the value of these institutions, or by bullying other

countries to ratify changes we have drafted in isolation. Real reform will come because

we convince others that they too have a stake in changethat such reforms will make

their world, and not just ours, more secure.

Then-presidential candidate Barack Obama

The Chicago Council on Global Affairs

April 23, 2007


19/43

Savg Multlatalsm


Mission

Te rini inernin iniin ined

in finni biiy nd finne er i e

Inernin Mnery Fnd Te Fnd

eed niderby fr i riin re, wi

fed n neen f e r e ye

f fixed exne re Wen e Unied Se

eiined derene e d ndrd nd

e ye f eed exne re in 97,

nrie were ef free e eir exne

re reie nd e IMF rer w rdiy

ended, in i f eiy n ebernrie wi erien bne-f-yen

rbe nd n rendin rie reen

e inernin nery ye we Te

Fnd e w fndeny ered by

e eerene f newy indeenden nin in

Afri nd eewere beinnin in e e 95,

fwed by ner we f new enrn fer

e end f e Cd Wr, b f wi reqired

ne in finnin nd iy die r

rw-riened rr refr nd rniin

fr enry-nned rke enie

Te IMF rreny rrie i iinr binin f finnin (yiy

dne r nd-by rrneen r ei

n), reine f nrie eni nd

finni iie, eni ine, nd iy

endreen

Governance

B e IMF nd e Wrd Bnk e Brd

f Gernr de f rereenie f

86 nrie wi ee wie yer

Te IMF Brd f Gernr i died by

w inieri iee, e Inernin

Mnery nd Finni Ciee (IMFC),

nd e Deeen Ciee Wie e

eifi wer reide wi e Brd, e re

neen f e IMF i dne by i Exeie

Brd f 4 eber, fie f w re ined

(e Unied Se, Jn, Gerny, Frne, nde Unied Kind), ree f w re eeed

by ine nry (Cin, Ri, nd Sdi

Arbi), nd 6 f w re eeed rereen

r f nrie, n wi e nin

direr f e IMF, w ere e irn

f e Exeie Brd Oer nd be e

inee f Gerny, Frne, nd e Unied

Kind, e reinin eber f e Eren

Unin re rereened n e Exeie Brd

in ne f een differen nry rin E

eber f e Exeie Brd nr re

f e e e IMF, deendin n e izend ee f riiin f e nrie in i

r er r Te Unied Se e re

ine in re wi 677 eren, fwed

by Jn (6 eren), Gerny (588 eren),

Frne (485 eren), nd e Unied Kind

(485 eren) Wie ny deiin e

Exeie Brd re de n e bi f jriy

re, e key deiin reqire er-jriy

e f 85 eren, wi ie e Unied Se,

wi i 677 eren re, e biiy bk

deiin If e ree ined Eren

rereenie ed eer, ey wde re n 5 eren f e e nd wd

e, ike e Unied Se, en wer

e ny in reqired erjriy

e f 85 eren Wie e IMF q re

re iy ded, ee de e

n reed in bni if in wer wy

fr errereened Ere nderrereened

eerin rke enie

Wi ree reen ernne refr effr

e Fnd, Mnin Direr Diniqe Sr-

Kn reed fr ir r refr,in fr rer fr e IMF Indeenden

Ein Offie, fr n inern Wrkin Gr

Indin e nin direr, ere re rreny Eren (4 eren f e ) erin n e IMFExeie Brd

Guardian of Global Finance:

The International Monetary Fund5


20/43


n IMF Crre Gernne, fr ii ieyrnizin, nd y fr e Ciee n

IMF Gernne Refr eded by S Afrin

Finne Minier Trer Mne A e Fnd

inern rer ned, diifin wi Fnd

ernne we re-de e rii, refein

ene f wnin reene (ien endn rie

i rke), effeiene (denred by e

Fnd inbiiy ke b ibne), nd

eiiy (wi iniin rre deribed

ded nd fedii)

In ein ddre e e nern breene nd eiiy, e Mne Ciee

w ebied in Seeber 8 nd ied i

rer n Mr 5, 9, in dne f e rin

eein f e IMF Te Ciee rer ed

fr:

Te rein f i-ee inieri ni

(IMF Cni) fer ii eneen

in rei nd rii deiin;

An eerin f e q nd ie refr

ben in 9 by ifin 7 75 eren

jriy fr deiin, wi wd e eeffe f rein e US e wer wie

iin w ine nrie e biiy bnd

eer e iiie ey d n ike;

A brder nde fr reine inde

reni iie, rdeni ie, nd

finni ier;

Cerer ine f renibiiy nd

nbiiy n ri deiin-kin

eniie in e Fnd wi re riy

fr eber-eifi reine ien neen nd reer rei nd

eriry re fr e Exeie Brd; nd

Inernin Mnery Fnd, IMF GernneSryf Ie nd Refr Oin, Srey Piy, nd ReiewDeren nd e Le Deren, J , 9

Te inrdin f n en, rnren, ndindeenden-f-niniy eein re

fr e Mnin Direr, ereby eiinin

e nwrien re e Mnin Direr

be Eren

Fr i r, e Indeenden Ein Offie

rer, Governance of the IMF, reended:

Crifiin nd erin f e re nd

renibiiie wiin e IMF ernne

rre iniize er nd e ;

Aie nd yei inieri-eeineen in ein rei nd

ereein erfrne;

Rerienin f e Brd wy fr

exeie fnin eriry re

fed n frin rey, nirin

iy ieenin, nd exeriin

exeie eri; nd

Ebien f frewrk d

neen nbe fr i erfrne

Cii iey rnizin, fr eir r,

eized r eir fr ir re

reer need fr rnreny nd niin,

riry wi e exeie direr, n wi

rn fr ne e diribin f in

wer nd q nd inreed nbiiy

fr e exeie brd Tey inied

e eein f e nin direr nd e

deie d be nded i eri-bed,

rnren re wi ny reriin

e niniy f e ndide

Mandate

Wi ree e nde f e IMF, e

rren eni rii ined e need fr

nber f bni ne e nde

f e IMF Tee inde e ebien f

Dissatisfaction

with Fund

governance well

pre-dates the

crisis, reflecting a

sense of declining

relevance (given

ascendant private

capital markets),

effectiveness

(demonstrated by

the Funds inability

to tackle global

imbalances),

and legitimacy

(with institutional

structures

described as

outmoded and

feudalistic).


21/43

Savg Multlatalsm


nd ery wrnin ye fr renind finni rik, brder reine f

eber reni iie (indin e

Unied Se nd Eren Unin eber e),

er eri f exne re ibne,

nd brd-bed r fr rw in deeinnrie by ein finne ner-yi

endin, bnk reiizin, infrrre,

rde finne, bne f yen r, deb

rer, nd i r


22/43


Mission

An e ier iniin, e k

f rin b deeen nd ery

eiin ririy f e Wrd Bnk Te

Wrd Bnk eed fr i inein

n iniin wi 44 eber nrie nd

f n wr renrin deeen

erie rnizin wi re n ,

eyee nd n dinirie bde f $6

biin L yer, i n ien ed

$469 biin Oer e yer, i re f

ifed fr rw r rde nd ineenin rneri wi idde-ine nrie

n rnizin e n eiin ery nd

rin deeen in r nrie

In e in, e Unied Se nd Ere e

d red fr nd ien e wrk

f e Wrd Bnk Gr Hweer, iriy

ere e been e differene in r A

i inein, e Unied Se w e Bnk

renibe fr bidin rn idde- nd

er eni reriy in idde-ine

nrie, in r ride rke fr US

exr A e Bnk ed fr renrin

f n deeen, e Unied Se

yiy fred iin nine

e rn ei n e ri f eni

rw nd rdie ineen en

eiy n e rie er Ere w iniiy

n e reeiin end f e Bnk renrin

effr, ni f wrk w ken er

by e Mr Pn One fy reered,

Ere ben fr e Bnk wrk

exiey wi e re nrie nd e

re ke f e idde-ine nrie,nd e Eren rein rn rnen

f i riry f n ery eiin

Governance

Te ernne rre f e Wrd Bnk rey

irrr e rre f e IMF, wi Brd f

Gernr ee wie yer nd e re

neen f e Bnk dne by i Exeie

Brd, wi re ed f 4 direr

w re ined r eeed by e e eber

nrie r r f nrie e IMF n

wi e reiden f e Bnk, w ere i

irn Te in wei f e nry

i de f b bi e (we e

erded er ie) nd e re deenden n nry redin in e Bnk Unike e

IMF, wi i q reiew eery fie

yer, redin djen re de r

eridind enery ery iiree

Wi 64 eren, e Unied Se by fr

e re in wei e Exeie Brd

f e Inernin Bnk fr Renrin nd

Deeen, fwed by Jn (787 eren),

Gerny (449 eren), Frne (43 eren),

nd e Unied Kind (43 eren) Tee

fie nrie e e ri in eir wn

rereenie fr Exeie Brd Treeer nrie ee ine rereenie

e f e Exeie Brd (Cin, Ri nd

Sdi Arbi), wie e reinin 6 direr

re eeed rereen r f nrie A

wi e IMF, f e er eber f e

Eren Unin riie r f r f

nrie rereened by ne f een er eeed

rereenie n e Exeie Brd

Deiin e Bnk re de by ie jriy

e fr rdinry deiin nd by erjriy

(85 eren) fr ne ye f deiinenden e Arie f Areeen A e IMF, bee

Teniy e Wrd Bnk Gr fr brd (IBRD,IDA, IFC, nd MIGA) f exeie direr wi iydifferen in erene fr e, b ri er,e e indiid yiy ere e exeie direr n fr

From Reconstruction to Development:

The World Bank6

Europe has

long favored

a World Bank

focused almost

exclusively on

poverty alleviation,

while the U.S.

wants additional

emphasis placed

on private sector

engagement and

development.


23/43

Savg Multlatalsm


Table 4. The World Bank Group today

World Bank Group Est. Areas of specialization Cumulative Lending/

commitments

(billions)

Fiscal 2009 Lending/

commitments

(billions)

International Bank

for Reconstruction

and Development

1944 Focuses on lending to public

sector entities in poor to

middle income countries.

$479

(effective FY 2005,

includes guarantees)

$32.9 for 126 new

operations in 42

countries

International

Development

Association

1960 IDA lends to worlds poorest

countries. Provides interest-

free loans and grants to

public sector to boost growth

and reduce inequality. Major

source of financing forinfrastructure.

$207

(effective FY 2005,

includes guarantees)

$14 for 176 new

operations in 63

countries

International

Finance

Corporation

1956 Finances private sector

investment, mobilizing capital

in financial markets, and

providing advisory services

to businesses. IFC invests in

enterprises majority-owned

by the private sector. Aims

to address constraints to

private sector investment in

infrastructure, health, and

education.

$34.4 (plus $8 in

syndicated loans)

$10.5 committed

and $4 mobilized for

447 projects in 103

countries

Multilateral

Investment

Guarantee

Agency

1988 Promotes FDI into developing

countries by providing political

risk insurance (guarantees)

to the private sector. Insures

investment against losses

related to expropriation,

currency transfer restrictions,

civil disturbance/war, breach

of contract, non-honoring

of sovereign financial

obligations.

$20.9

(includes amounts

leveraged through

the Cooperative

Underwriting Program)

$1.4 in guarantees

issued for 26 projects

International

Centre forSettlement of

Investment

Disputes

1966 Autonomous international

institution aims to providefacilities for conciliation and

arbitration of international

investment disputes.

292 cases registered 24 cases registered

in 2009

The term World Bank typically refers only to the IBRD and IDA. The World Bank Group also encompasses the IFC, MIGA, and ICSID.

Source: World Bank Annual Report 2009.


24/43


e Unied Se nr re n 5 erenf e e, i ne n effeie e wer

bk ny ne e Arie, nd

yy bned rnd e ereied

re f i e wer

Mny r fr ernne refr e Wrd

Bnk e been de er e yer, ririy

ied ddrein e ri ibne

re fr e ined e ed by e bi

ree Eren nrie, r fr e US e

wer M reeny, in Ober 8, Wrd Bnk

Preiden Rber Zeik ebied i-eeiin, eded by frer Mexin Preiden

Erne Zedi, f n e dernizin f

Wrd Bnk Gr ernne e Wrd Bnk

Gr n ere re dyniy, effeiey,

effiieny, nd eiiey in rnfred b

ii eny

A e e, e Ciin n Mdernizin

f Wrd Bnk Gr Gernne ned

inifin weknee in ree key re f e

Bnk deiin kin nd ernne ree:

rey frin, ie nd riiin, nd

nbiiy

On strategy formulation, e Ciin fnd

e Bnk k n effeie en fre

er rey n be ed e ririie,

bne rdeff, nd in erin nd

rere wi rei In r, i i de

e diry nre f e Deeen Ciee

nd e inffiien ie ibe nd eniriy

ne eber f e Bnk rren

Exeie Brd

On voice and participation, e Ciin ned e deiin-kin re i widey een

exie nd nber f nenin

nd rie ree e erein e Bnk

i nbe nd renie be ny

ndf f reder Cnribin i

erein i e inifin beween e inre f deein er deeed nrie,

n in f in wer nd ei jriy

re ie rie e US e nd e

niderbe errereenin f Eren

nrie n e Bnk Exeie Brd

On accountability, e Ciin ied in

rir e bi reini beween e

Brd nd neen, e nfi f inere

fr e reiden f e Bnk erin

e irn f e Exeie Brd, e

diffiy in din e reiden nbefr erfrne, nd e nn-rnren

re fr e eein f e reiden, wi i

nwrien nenin e reiden f e

Bnk be US iizen (j e nin

direr f e IMF be Eren)

Te Zedi Ciin ied i rer

in Ober 9, wi inded fie

reendin e Ciin ned need

be ded nd ieened ine ke

Enhancing voice and participation by

nidin e brd ir fr erren 4, in e brd enirey f

eeed ir rereen i-nry

nienie, nd eiinin e ink

beween e IMF q nd e Wrd Bnk

in wer;

Restructuring the World Banks governing bodies

by eein e Brd inieri ee wi

renibiiy fr er rey nd direin

jr iy deiin, eri nd eein

f e Preiden, deein neen e

r f finnin erin nd reinn diry ni f rereenie;

Reforming the leadership selection process by

rein re-bed, inie, eiie

re fr eein e Preiden de

In October 2008,

World Bank

President Zoellick

established a high-

level commission

to focus on the

modernization of

World Bank Group

governance so

the World Bank

Group can operate

more dynamically,

effectively,

efficiently, and

legitimately in

a transformed

global political

economy.


25/43

Savg Multlatalsm


wy wi e rren n-wrien re reere e Bnk reideny US iizen;

Strengthening management accountability by

rein erfrne reiew re fr

e Bnk reiden, inrein e f exern

ein nd inrein reiew f e

ridin fey ne fr e re; nd

Strengthen the Banks resource base r

inree i i be

Mandate

Wi ree e nde f e Wrd Bnk,

inifin ne redy rred Hweer,

e ny fr refr indie, rein

be dne Wi fr brne in ddiin e

riin Inernin Bnk fr Renrin nd

Deeen nd e ebien f rein

deeen bnk, e Wrd Bnk ed fr

beynd i inii re f endin bi-er

eniie fr renrin M f e Wrd

Bnk rren r i rided r eqiy

ineen, finni erie, nd ii rik

inrne, in ddiin rdiin endin ndrje finnin

In dy wrd, i i er re need

be dne brden nd deeen e re f e

Bnk, riry in i reini wi nn-

e r, be ey rie bine, NGO, r

bier id dnr, enr nen f i

deeen rey nd enre i i n

ryin be in ee Gb eder

nd r ike e ned e

eni reery i ne wi be ririy

ed by e rie er, be i nd rebinee, enrerener, irfinne endin

r, r rik-ker nd finnier fr rnd

e wrd

Prie er rw been e enine wed ndred f iin f ee if

eee f ery in Cin nd Indi in

reen dede Fr Dbi My nin,

in Dead Aid, deeen ine

ernen i ey ney frer r

ernne nd dd e ery f Afri rer

n ein i, R Genn Hbbrd nd Wii

Dn , in The Aid Trap, fr new Mr

Pn f endin direy rie enerrie in

e wrd re nin, e inin f

b rneri fr deeen wi e rie

er r f e Mienni DeeenG, ere re rwin fr re rere

be direy rned rie nd bine

in rder b ie idde nd

e rke inenie nd diiine n re

eni iiy In ddiin, e Bnk need

dj i r ddre e niderbe

eiin i nw fe in e deeen

f infrrre fr nrie, riry

Cin, w re wiin ine direy in re-

e rje wi ny f e iy rin

(ndiiniy) nry ed by e Bnk

e iiie I need enre e Bnk i yin bi re ibe in e

effr enre deeen nd inbe

eni iiy nd in nd Mreer,

e G nferred n e Bnk edin re

in rendin rbe reqirin by

rdined in, ie ne nd

fd eriy3

3 Pibr Si, Leder Seen, Seeber 4-5,9, rr


26/43


Mission

A wi e IMF nd e Wrd Bnk, e rini

ernin iniin f e b rdin

yefir e Gener Areeen n Triff

nd Trde, en i er, e Wrd Trde

Ornizin nderne jr ne ine

i w fir neied in e 94 Fwin e

fire f e Unied Se rify e Hn

Crer wd e reed e Inernin

Trde Ornizin, er r f 3 nrie

jined eer in er rrneen ride

reir riff redin nd ree erinde ernin eir rdin reini Te

GATT rided e fr in wi ei rnd

f ier rde neiin were eed,

bniy werin riff n indri d

n indri nrie ( n ye

in rir rd r e br-inenie

nfred d f exr inere ny

deein nrie) Tr i ye f riff

bindin, rnreny, nd derene re

eeiy e rinie f nndiriinin

exreed in e most favored nation (MFN) nd

national treatmentriine GATT rided n nderinnin f iniin biiy

nd redibiiy in inernin rde ered

rnr in e re f 93-ye

reini r e end f f e

enry

Wi e inrein exiy f b ere

e e reniin n GATT eber f e

need fr n rnizin d ride re

reenie rein f inernin rde

Te ITO i w riiny eniined wd e

ed wide rei beynd rde in d, wi ebiiy neie re ernin br ndrd,

diy reeen, reriie bine

rie, inernin ineen, nd rde

in erie Wi e nin f e Ury

Rnd neiin, e GATT eberi

reed e n, in 995, f f-feded

Negotiating the Rules: The World Trade

Organization7

inernin rnizin, e Wrd TrdeOrnizin, wi nw eberi f 53

nrie A wi e riin ITO, e WTO i

nerned wi diiine n rde beynd j

d, nd er rde in rire nd erie

we re n inee rery, bidie,

ineen, nd rde fiiin Te WTO

b bindin die eeen eni

Governance

Unike e Bnk nd e Fnd, e WTO de

n e fr ernne rre wi

ernin r exeie brd Ined, e WTO i

eber-drien iniin, rn by i eber

wi reiey ereri ery

iied wer re, e ie,

in rbe I i rnized r

erie f niririy e Gener Cni,

e Die Seeen Bdy, nd e Trde Piy

Reiew Bdy, n wi e Cni fr Trde in

Gd, e Cni fr Trde in Serie, nd e

Cni fr Trde-Reed Ae f Inee

Prery Riwi re ired by Gene

rereenie f WTO eber nry wi

n nn rin f e ir In ddiin, ere

re ner iee nd wrkin rie

n rir ie re en eber

Wie e reeen ebiin e WTO e

fr nber f redre by wi e d

be ken n erin ie, in rie e WTO

nined ere n nen bi

Crie fr refr f e WTO ben in erne

fwin e e re nd fire

re reeen e WTO inf 999

Minieri Cnferene in See, Winn

Fr yer er, ry befre ner e-n-

ef Minieri Cnferene in Cnn,

e en-Direr Gener f e WTO, Si

Pnikdi, ebied nie brd

ddre e fre f e WTO nd e iniin

ene i fed T r, ed by frer WTO


27/43

Savg Multlatalsm


Direr Gener Peer Sernd, ied i rerin Deeber 5, n e en nnierry f e

rein f WTO

An er in, e Sernd Rer

fed n e nen-bed deiin-kin

re I reended re n be ed

n ny eber bkin ere erwie

enjy rn nen, nd e WTO re-

exine e rinie f rier re

neiin nd e ibiiy f rin

deiin by rii f eber A

reended were rer nn inierieein, WTO Si f wrd eder eery

fie yer, nd e ebien f nie

bdy fr enir ffii wd ee n

qrery bi I red e deeen f e f

bjeie fr e WTO rein wi ii iey

nd e bi re Te rer exreed

dee nern b e red f rein

preferential trade agreements nd ed fr

reeen be bje eninf reiew nd

effeie diiine e WTO

Tw yer er, Wrwik Unieriy in e Unied

Kind ebied i fir Wrwik Ciin

wi brd nde exine e ernne

f e ier rdin ye in i f

rwin ene Te Ciin ked

wy ner rwin iin frer

rde iberizin in indriized nrie nd

enre e end f e d dinin f

e rde reie by e Unied Se nd Ere

de n ie wy n-er ee r

dieneen I wy fre brd-

bed reeen b e WTO bjeie nd

fnin nd enre e WTO nyreeen re in benefi fr i weke

eber Finy, wi e Sernd Rer,

i ked wy enre e riferin

f rein refereni rde reeen

de n nderine e WTO rinie

f nndiriinin nd rnreny in

inernin ere An er in, eWrwik Ciin reended critical mass

r deiin-kin nd red e

indriized nrie refrin fr neiin

refereni reeen wi e er we

e deeen f WTO diiine nd reiew

eni fr reeen A i reen

Minieri Cnferene in Deeber 9, in e

fe f e nined inbiiy nde e D

Deeen Rnd f rde k, re n

nrie endred r ebi re

reiew e WTO fninin, effiieny, nd

rnreny, nd nider ibe ireenin i f e rid ne in e b eni

enirnen nd e need fr e WTO be

ie nd renie T de, nne f ee

fr refr e reed in ny ne in e

WTO ernne rre

Mandate

Te WTO i i wrein wi e new nde

i w ien in e rniin fr e GATT

n iniin wi e w er

f e riin ITO Aredy r f

ieindin f e Eren Unini

in fr i-frer brdenin f e WTO

nde, wi e ribin e fire

nde e D Rnd in r n i nrrw

end f yeerdy ieney, rke

e in rire, in d, nd in erie4

Oer WTO eber ike Brzi nd S Afri

re re rein, refin e n new

ie ni deeed nry eber ke

d n rie w de e end f

4 See fr exe, Adiy M nd Arind Sbrnin,Fr D e Nex Bren Wd, A New MierTrde Aend, Foreign Affairs, Jn/Feb 9, nendin new rnd f k i needed dee re biiend n D, inin brder e f iniin nj e WTO nd fin n wider rry f ie, indinfd eriy (exr bn n rire, bife iie, e),re, enery rde, exne re, rein f ereinwe fnd, nd ie ne

Already a chorus

of voices

including that

of the European

Unionis calling

for a still-further

broadening of th

WTOs mandate,

with some

attributing the

failure to conclud

the Doha Round

in part on its

narrow agenda

of yesterdays

issuesnamely

market access

in agriculture,

in goods, and in

services.


28/43


e Ury Rnd, fer f-enryf reine, iberizin wd be exended

rde in fr rd nd in i nfre

f exr inere deein nrie Ti

n-rnnin ndff i e er f e reen

dedk in e D Rnd

Hweer ee ie find rein, i i er

if e WTO i rein reen i wi need be

ened in e rde ie, brdy defined, f e

weny-fir enry Tee inde eiiniy, ineen iy, enery iy, fd

eriy, b e erie, eny,

enirnen d nd erie, nd

f ddiin ie re b neni

nd e re f bine nernindin

rrin, rre i renibiiy,

exne re, iirin, nd yber eriy


29/43

Savg Multlatalsm


A nber f bi niie nd eend fr ee ri fr refr f e

Bren Wd riere:

A renize e iniin f b

eni ernne were reed

ery differen ie nd nder ery differen

irne b e fied ne,

riry wi ree e nin

diribin f eni wei nd wer

n nin;

A renize e ierie fr ne

e fr ii eder w re

be ny rir iniin in reniin

f e f i i iry iibe

ne ernne rre fr wiin,

riry wen ne ine ifin

wer wy fr e er;

A fr inreed nd ie ineen

ier ii ee in e ernne f

e iniin, riry in ein rei

direin; nd

A r brdenin r deeenin f erne f iiie nd nde f e exiin

iniin

I rein be een weer e eer ierie

fr rdined b rene e finni

rii nd e eerene f brder nd rner

nen n e G eder wi ride

e needed y fr ne, r weer ee

berin fr refr wi jin n ine f we-

- r ied wi ryin dereef fnfre ny ink wi re in e en f

we-enin b fied ide, we wy by ny

f e e fre ke i rder re

inernin nen n nyin Hweer i

y be, in e enie i i re f e

e ne i needed i n iibe

iee Fr e ier eni iniin

d n need be eey renred

fr e rnd T wd be nreii

Te rren rii i nikey be eier dee

en r f ffiien drin ree 944

en niin-kin enwen jr new iniin nd iniin

reini n be bi new r reed f

we Ined, w i needed i re

kin renovation nd n rebidin

Ti renin f e e f b eni

ernne wd ine rebnin f wer

wiin e exiin iniin wy fr Ere

nd e Unied Se nd wrd e re f

e wrd I wd ine brdenin f e

nde f ee iniin enbe e

ddre e new ie f e dy I wden deeenin f e rdinin n e

iniin, indin e WTO, enre

rein ie d n f beween e rk

Finy, i wd en new ien n

e r f e jr yer wrk brin

e riferin f rein reeen n e

ideine in eir fd

Hw n i be dne?

Renovating the House of Global

Economic Governance for the

21st Century8

This renovation

of the house of

global economic

governance

would involve:

a rebalancing

of power, a

broadening of

mandates, a

deepening of

coordination, and

a commitment

to bring regional

agreements into

the fold.


30/43


Te ie wy iee ee i rnfr e G in Cni f Gernr

fr e ree ebied inernin eni

iniin e new Finni Sbiiy Brd

Wie e G y n be erfend debe

wi dbe nine weer e rren

nfirin i e i nee f i

i defied i dber in rein nen

n eifi re nber f rii nd

nreri ie B e Unied Se nd

Ere eered fr e ree i wi

d de f nfidene in e rin Wen

we re kin b refr f e inerninyee G w een e ri bdy fr

ee deiin be de , ned Brii Prie

Minier Grdn Brwn US Preiden Brk

Ob ned e G wi ke e ed in

bidin new r erin Ti

r we fr e G bein Ni

Srkzy ed e Wrd Eni Fr i

Jnry, e rbiner f b ernne in e

enry Te G Cni f Gernr wd

ebi rei nd en ie e ri

iniin e jb f rryin e

Ti G Cni f Gernr wd f n

ree in k:

Sein e rei direin f e

inernin iniin (IMF, Wrd Bnk,

WTO, nd FSB) enre eir nde re

brd en er e ny ie

re nw fin beween e rk ye ired

en enre ineffiien er r

iin ree re ided;

Pin r e neery ne

in e in nd wer rre

e IMF nd Wrd Bnk enre

e iniin ernne rre

refe ne in eni wei, wie

The Harbinger of Global Governance:

Political Leadership and the G209

e e ie infin e WTO widirein nd r fr er

r f ier ee ffii; nd

Hdin e inernin iniin

nbe fr ieenin e direie

e fr e G i nd iin

e inernin iniin fr

d e G eder nbe fr eir

ien e iniin

Pridin e G wi re wd w e

r e rei direin nd en e e

niderbe exerie nd qified ernne

e f e iniin rry i inrin

By iin e G e ninin re f in

eer e ne r wie yer erfr e

fidiry dy f direin-ein nd eri

fr ee iniin, e G wd be red f

nien nd n-in re in ein e re

f b eni iiy Ue f e G fr i

re wd ie e eerin rke nrie

ernen nd inifin ie in b

eni ernne, ein e re ened

in ddrein rbe e ier ee nd

win e y n irn brkerin re

wen differene beween e Unied Se nd

Ere reen e b ridk

A G Cni f Gernr d enre

ny nry in rdbk e

ieenin f reed-n ne n

be ined nd rered in e r f

inernin inin eri neery ne

e ed Ti inreed nbiiy wd

e in b direin, wi e iniin

eee in e i-ee ii

bdy wi ke nern b fire

fw r wi rir ien Pyin

i rei ederi re wd w e

G fi n f-ied need fr i-ee ii

Use of the G20

as a Council of

Governors would

give the emerging

market countries

a permanent and

significant voice in

global economic

governance,

getting them

more engaged

in addressing

problems at the

multilateral level

and allowing

them to play

an important

brokering role

when differences

between the

United States

and Europe

threaten to cause

global gridlock.


31/43

Savg Multlatalsm


eneen in e inernin iniin, bei n een ier ee n iniiy enied by

e refrer Finy, inin f e Wrd Trde

Ornizin wiin e bi f renibiiy

f i Cni f Gernr wd enre

e WTO ke i rif e n e

inernin iniin, in reniin f e

rii ink beween finne, deeen, nd

rde, nd e ierie f in e exerie ndre f e WTO enre rie enerrie

n be fy ened in wrdwide eni

reery nd fre reriy In ddiin i

new re fr e G, i wi be neery

reffir r fr e ier iniin

e ie ii ee, nd ddre e

exin f rein reeen


32/43


On e ne nd, e inernin rnizine been ken ew fr rned

widey-eed ne n e b

ene On e er nd, ey e bee e

re f iren re nd inin ii

rebke fr ny qrer Te n e ri,

riry in e Unied Se, deey reen e

Unied Nin nd ee i inier inren

f frein dinin On e er ide f e

idei er, e n e ef freqeny

e e rd nd ine e re re fr

eein f e WTO r IMF nd Wrd

Bnk, bjein w ey ee e re fee iniin in exerbin e wr f

bizinrwin ineqiy fnne

we e inin rrin wie

ein e re nrie eer frer beind

Priry i ie f rii, i i eeni

e w ndernd nd reie e rii

wrk f ee iniin nd fr e nd

fr e brd ieri ey rereen

Fire d wi ny nderine r in e

iniin nd in e beief b eni

rbe n nd d be ddreed by Ifnin ee, e inernin iniin brin

b enie f e nd dee exerie

nn be rediy reed A e wrd nd i

rbe rw re ex, i knwede

ed in ny nrie nd er n

erid f ien ny be d e if e

iniin eee re rery inined

Te iniin e reer yin wer nd

ner-er, brder-bed r rein

b eni rbe n ny bier

r rein rrneen de Tey e been

brinin eer ee nd ide fr rnd ewrd fr re n 6 yer in ne fr,

eein, rje nnin ein, nd re

Awy fr e er nd e idei

kereen, i i in e ndne dy--dy

eein, rer, nd rje bein nded

Reaffirming Multilateralism in a

World of Regionalism10

wiin ee iniin ieri i fen dned Cnrie e in e bi

f wrkin eer nd e irn

nderndin b b e bne nd e

redre fr eir eie in A edy

re f infrin i exned, nderndin

reed, nd nr ebied r ee

iniin erin Fr exe, deie

e inbiiy f e WTO re nen n

ein f e D Rnd, reeen

nd n nderndin been ieed

r e nin wrk f e ri WTO

iee, riry e Cni fr Trdein Serie nd e Ciee n Sniry nd

Pyniry Mere5 Wie ee rie

dn rie e ee f fr rekin, ey d

fr f e bred-nd-ber f ier

iiy i rii if nrie re in

e eer in ie f rii

Te een f G eder nd er

rin ee ier iniin nd

eir wrk in rirnd e rinie f

ier erin in enerre be

ended, nd wi need be reeed er nder e iniin nine re wi e

fen-neni ie f e enry A e

e ie, nber f re ieri

be knweded nd ddreed M

irny n ee i e rid rw

f reini nd rein ine nd rde

rrneen

5 Fr exe, e WTO Ciee n Sniry ndPyniry Mere ded deiin n eieenin f Arie 4 f e SPS Areeen rerdinreniin f eqiene f differen ndrd, redre

enne rnreny, nd ideine frer eieenin f e SPS riin n rein nd e-freere See Andrew Ln nd Jnne S, Te Hidden Wrdf WTO Gernne, The European Journal of InternationalLaw, V , Ie 3, 9, 575-64, iin WTO D S/C/M8 nd WTO D S/CSC/M/7

The multilateral

institutions have

economies of

scale, depth of

expertise, greater

staying power

and a longer-

term, broader-

based approach

to resolving

global economic

problems than

any bilateral

or regional

agreement does.


33/43

Savg Multlatalsm


Te debe er weer rein reeennd rein rde reeen in rir

nribe r der fr e ier

ye rwn in ineniy e nber

f new reeen, reeny in Ai,

kyrkeed Indeed, in e fir 45 yer f e

GATTe erid beween 948 nd e rein

f e WTO e nin f e Ury

Rnd4 rein rde reeen were

nified, e n ree yer By nr, e

5 yer w 333 new nifiin f

reeen, re n yer A f Ober

5, 9, 457 rein rde reeen d beennified e WTO, 66 f wi re rreny

in fre6 Te reen i e Aiin f

S E Ain Nin (ASEAN)-Cin Free

Trde Are (ACFTA), ned n Jnry ,

Ti i e re free-rde re in e wrd by

in (9 biin), wi bined GDP

f $6 riin, kin i e ird re (beind

e Eren Unin nd NAFTA) by eni

e Te ASEAN-Ari-New Zend Free

Trde Areeen (AANZFTA) wen in effe

n Jnry , erin 6 iin ee nd

bined GDP f $8 riin

Nr i rde e ny re in wi ei

bw f rein ine re in in fre

Te Cin Mi Iniiie Mierizin

(CMIM), rein finni eni in

Ai, enin e ASEAN, Jn, Kre,

nd Cin, e $ biin fiiy deined

renen e rein iy ferd

in inreed rik nd ene in e

b eny Te re bjeie f i Ain

Mnery Fnd re (i) ddre bne-f-

yen nd r-er iqidiy diffiiein e rein, nd (ii) een e exiin

inernin finni rrneen A , i

rereen rein eiin e IMF, bei

6 Wrd Trde Ornizin, Rer f e Ciee nRein Trde Areeen, WT/Re/, 6 O 9

wi w en i be fr nw e IMF wi ikey rein e ender f rer

een wiin e CMIM rein

In e deeen ren, e Wrd Bnk

een n exin in e e f r fnd, wi

re bier r rein deeen fnd

qerdin ier ne Te Wrd

Bnk y dinier e, b e fnd

be en were nd w e fen e dnr

deine Oer nd r fnd

e been ebied in reen yer L yer,

dibreen fr r fnd eqed ff e Wrd Bnk dibreen Teer

wi bier deeen ine, r

fnd w dnr ie eir wn

nd rey, wi n brin in bier ii

rere r r-er r nrrw f y

n be in e be inere f nry we

Cin, fr exe, biin f dr in

infrrre rje in Afri wie nribin

ny $3 iin e Inernin Deeen

Aiin (IDA), e Wrd Bnk r deined

e e re nrie

A in , i rn rein r bier

rrneen in ie f ier ne i

e, wi rxiey 5 eren f rde

rrin nder reeen nd b 65

eren f id rreny in fr r

fnd, bier id fnd, r eri n r

rn fed n rir ie Wy

dri if? Mny nrie rnd e wrd

e rned wy fr ieri nd e

ier iniin fr nber f ren

Fir, ere re nn-iniin ernie e

ier yernin fr brd rryf rie ineen n e IMF

e infrrre rje re finned

by frein ernen r er id fnd, fen

nderinin e re f e Wrd Bnk Send,

ny deein nrie re kei b

iniin e by e rnni wer in

This turn

to regional

or bilateral

arrangements in

lieu of multilatera

ones is huge, wit

approximately

50 percent of all

trade occurring

under such

agreements and

about 65 percen

of all aid current

coming from trus

funds, bilateral a

funds, or vertica

loans or grants

focused on a

particular issue.


34/43


wi ey dn e inifin ie r nyre nfidene e iniin wi ddre

eir need Tird, ey e fnd rein

reeen eier re, eier bee ey

dn reqire in e f e rde rbe

n e be in ier neiinfr

exe, rir bidy ie e WTO

r iy bee rein n reeen n

bier r rein bi i eier n ryin

re n reeen n e ide f rie

ny reeen e ier ee

Te dwnide f i r reini reny Te ie, enery, nd rere reqired

neie bier r rein reeen re

niderbe, nd by neeiy ke wy be

ie, rere, nd ii i ibe

nrie dee ier reeen A

e e ie, bier r rein reeen

re re bje e rie f dei

iiindeed, ey re fen iniied in

rene ririi eri r frein

iy rere Ten, ne ey re in fre,

f ee reeen e wek r nn-

exien die eeen eni, kinien nder reeen rder

enfre Bier nd rein reeen

fen e niqe re nd riin, wi

inree er rnin in e ye

nd ke i diffi fr deein nrie

ndernd w ey need d y

wi wide rry f differin e f re On

e rde ide, reeen fen exde

rir rd r dn w fr inf in r rere fr nrie ide

f e rir reeen, wi n ed

ineffiienie nd b-nd-ke ye f

rde in wi wer-bed rrneen bein

erde e rein f re-bed nn-

diriinry ier rdin ye7

Finynd irnyriferin

refereni reeen by eir ery exiene

end rn in f rwin k f fi in

ier iniin nd e ier ye

A , i i ierie e ierye wrk fix rbe deerren

deeer eneen by deein nrie

wie e e ie wrkin brin e

ri bier nd rein rrneen wiin

eir ye Te ier iniin need

renize e rein reeen re

ie in nide nd e nd e dded

enr exiy e ye, b

e e ie ey re ere y M reny

needed fr e ier iniin re er

ideine fr ny reeen enre

ey re ein ne ieri rern brrier enry fr nyne ide ny ien

rein r bier rrneen

7 Te eni fr rein rde reeen nderinee ier ye e been widey died See frexe Jdi Bwi, Termites in the Trading System: HowPreferential Agreements Undermine Free Trade, Cni nFrein Rein (8)

The multilateral

institutions need

to recognize

that the regional

agreements

are massive in

magnitude and

add enormous

complexity to the

system, but they

are here to stay

and need to be

accommodated

and incorporated

into the

multilateral

system.


35/43

Savg Multlatalsm


Drin e rii erid f e Bren Wdnferene f 944 nd in e n

fwed, re r f e wrd iked ief

fr e rin f derein nd wr nd ried

rnd e iinrey e fr by e Unied

Se nd Gre Briin ree iniin

nd rd wd reen reeiin f

e dier f e 93 by win fr b

eni erin nd ier ernne

Ten-US Preiden Frnkin Den Ree,

in i ddre e US Cnre, dered

e wrd wi eier e wrd niy nd

widey red reriy, r i wi e r,nin e en-eerin n fr e Bren

Wd iniin nd e b rdin ye

rereened e ne y e eni bi

fr e ere nd eef wrd we deire

Te reen b eni rii n been f

e e rder f nide f e een f e

93 B i de rereen ner rnfrie

en in wrd iry In rir, i reen

e Unied Se nd Ere wi ner

rniy exerie red rnni

ederi enre e iin f eir eder n be reered, ded, nd rried

frwrd in e enry wi e ene

i brin W d Ere nd e Unied Se

need d ee i ene?

Fir, ey need i n ie n e

ier eni iniin, b refr

e ined Teer, e Unied Se nd

Ere reed ee ier iniin nd

ey e in eer in keein e

e re f e b eni riere

Hweer, enrin ee iniin reinreen, eiie, nd effeie wi en e

inifin ne in e nner in wi b

e Unied Se nd Ere riie in eir

erin Tee ne re n rniy

w re ederi n e wrd e e

f e nein in e fr wer rre

Areein ke ee nein wd end werf in e re f e wrd

ey n e fi ee iniin re

nin de ifin reini

in e b eny nd n eqy werf

ffirin by e rnni wer f eir

ninin reine n ier iniin

Fr i r, e Unied Se d ie n

b e nwrien re e ed f e Wrd

Bnk be n Aerin nd e iniene

i rein e wer er er reqirin

erjriy In ddiin, e Unied Sed r e e f e G rei

eerin r r Cni f Gernr fr e

Wrd Bnk, IMF, nd WTO enre rn

G re in rey frin nd rdinin

wd ie reer ie e eerin

rke enie

In e e ein, e eber e f e

Eren Unin d ie n e nwrien

re e ed f e IMF be Eren,

nd wrk nide Eren e nd e

e IMF nd Wrd Bnk eier in ine

Eren e (wi wd ie Ere e

ine re in re) r e nide

i een ri e wi e bier Eren

enie Ere end wi n

re n fr e A wi e Unied Se,

e Eren Unin nd i eber e

d end eir r e G e

eerin iee f e b eny

Fr Ere, e fr f Eren riiin

in e Bren Wd iniin reen

ene nd n rniy ree e be

wy enre e rne eie Eren

ie in b eni ernne Te in

in fre f e Libn Trey ie e Eren

Unin fr inernin e erniy,

nd rnd e wrd e EU i rernizin i

rereenin, re wi nine wi e

Transatlantic Multilateralism

for the 21st Century11

In order to save

the institutions

they started, the

U.S. and Europe

need to give up

some of their

formal power in

order to allow

more legitimate

and more relevan

institutions to

emerge.


36/43


frin f e Exern Ain Serie A refrf e ernne rre f e inernin

eni iniin wd ie Ere ner

rniy i new in erin

Tdy, e WTO, Ere ek wi ne ie,

r e rereenin by e Eren

Ciin Te ie i e e e Bren

Wd iniin, were e Eren Unin

n fr e nd n ny r

e ie f erin eber e Nr de

e Erzne e fr e e IMF A

e G, e Eren Unin nd e ErenCiin e been reenb , , e

been indiid eber e (Frne, Gerny,

Iy, nd e Unied Kind, er jined by

Sin nd e Neernd), wi e f ee

eber e erdwin e Eren Unin

Refrin e nner f Eren riiin

in e Bren Wd iniin d be win-

win fr Ere I wd w Ere w

ederi nd ien e dernizin

f e ier iniin wie e e

ie nidin Eren wer in ine

b rer in re B i wi n be ey Teree eber e wi ernen eFrne,

Gerny, nd e Unied Kindwi n db

rei iin eir exie ri Mny f e

ie reed finni rein nd refr re

i rried e nin ee, een wiin

Ere nd wiin e Erzne Hweer, e

rniy bin re infene by in

eiey in i ne ren f inernin

eni iniin ernne be

ein fr Ere Tee iniin d n

rie e e ii rbe f Eren

nidin wd be reen e UN rin er fr Priiin ne Ere d be

een frerne f e re f rdined

Eren r w ben in rerin

fr e G Leder Si nd f e Libn

Trey f kin e Eren ie in e

wrd rner

Nneee, n er, f i d be een dri f wer n b ide f e Ani

B ri er, diinin in wy er

e iniin f b eni ernne

d re in ner-er in wd e

fr rner, re eiie, nd re effeie

iniin ere e ninin benefi

f e Unied Se nd Ere nd e kind f

be, en, re-bed b eny ey b

r If e re nd rieri fr eein

e ed f e IMF nd Wrd Bnk were ey

eri-bed, nd if e Unied Se nd Eren

Unin nined iy-qified ndide, eywd ikey nine ke eir rn in in

eir nin ere in ederi re Mreer,

wie e ex in re f nrie i n

irn yb f eir wer, few if ny fr

e re ken in rie In e re f findin

ffiien r fr ny ien r r f

fr e, e nidin f Ere in

ine ie y re in re, n e, infene

Mreer, e diinin in e in re

f e Unied Se r Ere wd i ee

b wer wi e biiy bk bjeinbe

ne iy by findin ndf f ernrie jin e

A e WTO, e nern er nd need fr

rnni ederi re ew differen,

wie e ene f effeiene, eiiy,

nd reene re e e Unike e IMF nd e

Wrd Bnk, e WTO de n e n exeie

brd r neen brd, nr de e WTO

Sereri e e wer e ririie r

re new re r fr rre re

new re er n r nennd

rdiiny ny r rnd f neiinTi en e WTO de n need ene

in ny fr rebnineriny n in e

direin f frer dein r rediribin

f wer Hweer, e WTO eberi de

need fr new ine nd r wd

ree e bi fr deiin-kin in e bene

f ee nen I i in in eer

Today, at the WTO,

Europe speaks

with one voice,

through sole

representation

by the European

Commission.

The opposite is

the case at the

Bretton Woods

institutions.


37/43

Savg Multlatalsm


ee ine e Unied Se nd eEren Unin d y ederi re

by kin eriy e reendin f e

Sernd Rer, e Wrwik Ciin, nd

er nribin in e ernie

e ine nderkinn -fr-ne nd ne-

fr- nen ny re US nd Eren

eder d enre eri debe b

e WTO ernne rre nd i e in e

b eni riere ke e nw, wie

eder fr rnd e wrd re fed n

ree ir f e ye nd d ke i er

i exinin n be nded widerien e nin e nde e

D Rnd neiinnd in f d een

nribe eir ef nin Ti i e

en fr e WTO ke i rif e n

eq rner wi e IMF nd e Wrd Bnk in

e b eni ye

Send, e Unied Se nd Ere d e

e G e effiien eni iner

i-ee ineen in e ernne f ee

iniin, riry eir rei direin

ein nd e erene n e Tey need enre e nde f ee iniin

re dernized er e ny ie re

rreny in nddreedindin fd

eriy, enery iy, ie ne, eiin

iy, nd rrinwie rein in

diin n e Tey ke

eriy e ien w eir wn

reni iie be bje re

riny by e G nd e IMF fr nieny

wi e G Frewrk fr Srn, Sinbe,

nd Bned Grw Mreer, b e Unied

Se nd e EU need ke eriy er fr refr f ee iniin nd

ik wi e refr re ni e neery

renin f e iniin re eed

Tird, e Unied Se nd e Eren

Unin d reffir eir ien

ieri by wrkin ierize e

ne f eir wn rein reeen nd d e f ideine fr ny frer reeen

enre ey d n der fr r

nderine e ier ye8 A in ny

er re, e Eren Unin nd e Unied

Se e been e frefrn f reini Te

Eren Unin ief i rein reeen

e re eni free rde re in e wrd,

fwed by e Nr Aerin Free Trde

Areeen, inkin e Unied Se, Cnd,

nd Mexi Gien eir ederi re in b

ier nd rein rw, e Unied

Se nd Ere d ed e wy infindin wy ierize ee reeen,

riry e reeen ey e e in

n wi er nrie, in nner wi

brin e er ieri Crreny,

e Unied Se nd e EU rein e er

re rdin rnerfr exeedin eir rde

wi ny er nry Fr exe, US w-wy

rde in d wi e EU ed $988 biin in

9, wie i w-wy rde wi Cin w $366

biin Hweer, i n e i f inifin

rdin rner fr b e US nd e EU re

nber f nrie wi w b eneied free rde reeen, nby

Cnd (e Unied Se end re rner

nd Ere fif), S Kre (e ix re

rdin rner fr b e Unied Se nd e

EU) nd Mexi (e fr re rner fr

e Unied Se nd en fr e EU) If ee

n reeen ne d be reed in

ier reeen, e Unied Se nd e

EU wi e dne brin bni

n f rde bk in e ier fd

8 Te ne f ierizin rein reeen been died in dei nd er fr,indin e Seeber - 7, nferene eWTO, Mierizin Reini: Cene fr eGb Trdin Sye See in rir, Rird BdwinMieriin Reini: Sei Bw BidinBk n e P Gb Free Trde, The World Economy29 (6)


38/43


Te irn nribin be de i ree n rinie ide effr

wy f diiniin e reeen re

ebe wiin ier ye nd e

re n Aebe reeen wd inde

e :

D n ree nfi wi eber

biin nder ier reeen,

e WTO Areeen r e IMF

Arie f Areeen

Are e rnren ier

reeen

Reqire f dire f e dei

e ier iniin nd bje e

rein reeen eni een

by e reen ier iniin fr

inifin innienie wi ierbiin

Wi ree rde reeen, wrk

redy been dne in ny fr n e

eifi f rnizin re f riin, r

ridin rniie e in in e

nfre f d, rein nfi beween

die eeen riin, y renizin

rery r nd re9 Te Eren

Unin nd e Unied Se need ree

nderke i wrk nw in rder w er

eir wn rein reeen n e ne reer ier inerin

9 See Rird Bdwin nd Prik Lw,MultilateralizingRegionalism Anni Eederd nd Ki SinenBridin Rein Trde Areeen in e Aeri, SeiRer n Inerin nd Trde, Iner-Aerin DeeenBnk

Figure 2. U.S. and EU Free Trade Agreements

U.S. Free Trade Agreements EU Free Trade Agreements

Source: USTR

The United States has signed free trade agreements (FTAs)with

Colombia, Korea, and Panama, but Congress must enact legislation

to approve and implement each agreement in order for them to go

into effect.

Source: EU Trade-European Commission (Jan. 11, 2010)

1Both the United States and the EU are in the process of

Documents

Saving Multilateralism