GLOBAL GOVERNANCE

GLOBAL GOVERNANCE
The decline of the nation-state, along with at least some of its
governance function, and the fact that the Intergovernmental
Organizations and treaties have not been sufficient in solving
transnational issues, have given rise to proliferating forms of global
governance.
Governance refers to the “processes and institutions, formal and
informal, whereby rules are created, compliance is elicited, and goods
are provided in pursuit of collective goals” (Hale and Held 2011: 12).
Global governance goes beyond the traditional forms of cooperation
between sovereign nation-states (e.g. interstate diplomacy, treaties, and
international law) to include a broader variety of networked
organizations and individuals that had not previously participated
directly in creating and enforcing rules (Cox and Schilthuis 2012).
Governance has shaped global politics in important ways, and is a
rapidly growing area of both activity and research.
GLOBAL POLITICAL
STRUCTURES AND PROCESSES
There are at least three new forms of global or
transnational governance.
•First, there is governance through multi-stakeholder
initiatives.
•The second, and common, form of global governance
involves the creation of voluntary
regulations.
•Third, there are transnational arbitration bodies where
global governance has been accorded to courts and
lawyers, but whose authority is not based in international
law (Hale and Held 2011).
*All the forms of governance identified above are involved in overseeing the world
economy.

There are at least five interdependent levels at which that governance can operate:

1.) The major political entities, especially the G3 (Europe, Japan, and North
America), can govern through various agreements “to stabilize exchange rates, to
coordinate fiscal and monetary policies, and to cooperate in limiting speculative
short-term financial transactions" (Hirst and Thompson 1999:191).

2.)States can create various international regulatory agencies to deal with a specific
economic issue (e.g. the WTO).

3. )Trade and investment blocs such as EU, NAFTA, and AFTA (ASEAN Free Trade
Area) can govern large economic areas.

4.) Nations can develop policies to enhance themselves and the ability of their
corporations to compete in the global marketplace.

5.) Regions within nations can integrate economic activities that take place within
their borders in order to increase their ability to compete globally and to protect
themselves from large shocks that might adversely affect them.
Nation-states have long struggled
to deal with problems like these
through various interstate
systems (e.g. alliances such as
NATO), but the more recent
trends documented aside are
toward,

(1) the development of more

truly global structures and
methods of dealing
with various sorts of issues and
problems;

(2) the involvement of a more

diverse array
of actors in the rule-setting
process.
The concept of global governance is an
increasingly important concern today.
This has emerged as an alternative, or at
least a supplement, to the inter-state
system inaddressing
various global problems.
Global governance has developed in
response to the decline of the
nation-state, as well as to global crises
that nation-states cannot control.