Ways to strengthen global economic governance

Farming for development Teaching farming methods to school children (UN Photo/Tortoli)

The majority of existing institutions and rules on global economic governance were created 60 years ago and now they are facing a world that has changed dramatically. Many developing countries have become powerful actors in the global economy and its importance is not reflected in these structures, leading to a deficit in coherence and consistency within the monetary, financial and commercial systems.

As a follow-up to the International Conference on Financing for Development, two panel discussions took place in Geneva on 11-12 July as part of the Coordination Segment of the 2011 ECOSOC Substantive Session.

The panel on “Global Economic Governance and Development: Enhancing the Coherence and Consistency of the international monetary, financial and trading systems”, held on 11 of July, explored reforms, initiatives and proposals that could guide the ways for a more effective global economic governance system, pointing to a greater legitimacy, accountability, and coherence. Part of the discussion included ways to enhance the role and effectiveness of the UN system in global economic governance.

Mr. Sha Zukang, Under-Secretary-General for Economic and Social Affairs, moderated this panel and in his opening remarks he pointed out how the system of global economic governance can become more inclusive, effective and transparent. “There is considerable scope for strengthening regional mechanisms as part of global economic governance architecture. Linkages between the regional and global levels can also be enhanced, with regional agreements informing global processes,” said Mr. Sha.

The other panel on “Building on Istanbul: Financial support for development efforts of LDCs, including through South-South and Triangular Cooperation”, held on 12 July, focused its attention on the financial strategies that can enhance productive capacities in LDCs and promote the development of human resources and basic infrastructure, while ensuring access to technology and adequate safety nets.

The strategies discussed were about the South-South and Triangular Cooperation which represent an option that can complement the support received by LDCs from traditional donors; that due to the slow and fragile economic recovery are limiting their aid to these countries.

Both panels consisted of presentations by government representatives, multilateral organizations and academic experts. The final summaries will provide input to the analytical report of the Secretary-General on global economic governance and development and the High- level Dialogue on Financing for Development.

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