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Inclusive and Effective Global Economic Governance:. A challenge of our times Graduate Program in International Affairs Practicum in International Affairs Presentation Client: United Nations Department of Social and Economic Affairs Strategic Planning Department Aditi Shukla Manjola Karame - PowerPoint PPT Presentation
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Inclusive and Effective Global Economic Governance:A challenge of our timesGraduate Program in International AffairsPracticum in International Affairs Presentation
Client: United Nations Department of Social and Economic Affairs Strategic Planning Department
Aditi ShuklaManjola KarameMartine NedregårdMartin Wøldike
Advisor: Ambassador Rafat Mahdi
UN Resolution:•Secretary -General’s Report
•Reaffirm UN’s role in global economic governance
Client•United Nations Department of Economic
and Social Affairs ▫Strategic Planning Division
Client Objective•Find a solution to the current state of
global economic governance
•Put the UN on center stage
•“In what way can the UN system be strengthened to play a leading role in global economic governance facilitating both more coherent and better coordinated multilateral policy responses to global challenges?”
Client Objective
Background• Failure of international community to handle
crisis through a representative body
• Weaknesses of current international economic system highlighted
• Current system inadequate
• How can the UN play a leading role?
Methodology•Qualitative Research Methods
•Interviews with prominent UN Ambassadors▫G20 ▫Global Governance Group
Why the UN?•Of its universal character with
▫Inclusive representation ▫Global outreach▫Long expertise
•Widely regarded as legitimate
•Can create international law
Dilemma:•Efficacy v. legitimacy and inclusiveness
Deficits in Global Economic Governance•Coherence
•Legitimacy
•Inclusiveness
•Effectiveness
Lack of Coherence• Myriad of actors, but little coordination
• Gaps to bridge and overlaps to break
• Will improve general effectiveness
• How to address the incoherence in a legitimate and effective way?
Lack of Legitimacy•Need for
inclusiveness/outreach/representation
•Need for effectiveness
Balancing Effectiveness and Inclusiveness•Tradeoffs between effectiveness and
inclusiveness
•What is the “optimal” balance?
Criteria• Criteria of the selection of the 47 countries in the
United Nations Economic Global Governance Council:▫ Population density▫ Nominal GDP▫ Number of states in the region
• Effectiveness and inclusiveness of a global economic governance body are most efficiently maintained through a model of regional representation
UN Regional Groupings• Council is organized in terms of the five UN Regional Groups:
▫ Africa —53 countries▫ Asia —53 countries▫ Eastern Europe —23 countries▫ Latin America and the Caribbean —33 countries▫ Western Europe and Others —28 countries
UNEGG Council Seat AllocationsAfrica Asia E.Eur LA&C WE&O
Seats 10 14 6 7 10
Total UNEGG Council Seats: 47
Population Sub-Group•Population
▫In order to represent countries with substantial populations.
▫Countries with the largest population must be present to make a substantial impact and effect a large body of people
GDP Sub-Groups•3 subgroups dedicated to the three
nominal GDP divisions of high, middle and low in the region:▫Economic diversity▫Seat eligibility
Baseline UNEGG Council Seat Allocations
Africa (53) Asia (53)E. Eur (23) LA&C (33)
WE&O (28)
Population +1 +1 +1 +1 +1High +1 +1 +1 +1 +1Middle +1 +1 +1 +1 +1Low +1 +1 +1 +1 +1Regional Seats 4 4 4 4 4
Seats Based on Percentage of World GDP•Proportion of seats should be allocated
based on the region’s access to the resources in question for the sake of effectiveness of the council- 15% threshold:▫Every 15% share of total world GDP a
region is allocated an additional seat.
Percentage of Total World GDP by Region
Region
Regional Nominal GDP/World Nominal
GDP % of Total World GDPAfrica 1,715,480 / 62,930,725 0.02725 2.7%
Asia 18,673,481 / 62,930,725 0.2967 29.7%
Eastern Europe 3,079,217 / 62,930,725 0.0489 4.9%Latin America & Caribbean 4,889,582 / 62,930,725 0.0776 7.8%Western Europe and Others 34,572,965 / 62,930,725 0.5493 54.9%
Calculation of “15%Threshold” Seats by Region
Region% of World GDP
Rounded Up
% of World GDP (Rounded Up) /
15 15% Rule SeatsAfrica 3% 3/15 = .2 0
Asia 30% 30/15 = 2 2
Eastern Europe 5% 5/15 = .333 0Latin America & Caribbean 8% 8/15 = .533 0Western Europe and Others 55% 55/15 = 3.667 3
UNEGG Council Seat Allocations + World GDP “15% Threshold”
(53) (53) E. Eur (23) LA&C (33) WE&O (28)Population 1 1 1 1 1High 1 1 1 1 1Middle 1 1 1 1 1Low 1 1 1 1 1Open Seat 0 +2 0 0 +3Regional Seats 4 6 4 4 7
Total UNEGG Council Seats: 25
Open Seats• The region will be permitted to democratically
allocate their open seats as they see fit.
• There are no restrictions on the nomination for the seats other than membership in the region.
• Flexibility▫ Acceptance of the Council ▫ Encourage energetic participation.
UNEGG Council Seat Allocations + World GDP “15% Threshold”
(53) (53)E. Eur (23) LA&C (33)
WE&O (28)
Population 1 1 1 1 1
High 1 1 1 1 1
Middle 1 1 1 1 1
Low 1 1 1 1 1
Open Seat 0 +2 0 0 +3Regional Seats 4 6 4 4 7Total UNEGG Council Seats: 25
Population Size•The largest populations must have a seat
at the table as their decisions impact a large proportion of the global economy.
Seats Based on Percentage of World Population• The “>1% rule” will ensure that all member
states with populations exceeding 1% of the world population are eligible for nomination for the regional population seat.
• Each region is given an additional seat for every third country which accounts for greater than 1% of the world’s population.
Seats Based on Percentage of World Population
Region Countries with >1% of World Population
Number of Countries
Additional Population Seats
Africa Nigeria, Egypt, Ethiopia 3 1Asia China, India, Indonesia,
Pakistan, Bangladesh, JapanPhilippines, Vietnam, Iran
9 3
Eastern Europe Russia 1 0
Latin America & Caribbean
Brazil, Mexico 2 0
Western Europe & Others
United States, Germany, Turkey
3 1
Seats Based on Percentage of World Population
Africa Asia E.Eur LA&C WE&O
Population 1 + 1 1 + 3 1 1 1 + 1High 1 1 1 1 1Middle 1 1 1 1 1Low 1 1 1 1 1Open Seats 0 2 0 0 3Regional Seats 5 9 4 4 8
Total UNEGG Council Seats: 30
Seats based on States to Seat Ratio•“10:1 ratio”– calls for the allocation of an
additional seat for every 10 member states in a region
Seats based on States to Seat Ratio
RegionNumber of
Member StatesNumber of
Member States/10“10:1 Ratio” Seats
(rounded down)
Africa 53 53/10 = 5.3 5
Asia 53 53/10 = 5.3 5
Eastern Europe 23 23/10 = 2.3 2Latin America & Caribbean 33 33/10 = 3.3 3Western Europe and Others 28 28/10 = 2.8 2
UNEGG Council Seat Allocations + 10:1 Ratio
Africa (53) Asia (53) E. Eur (23) LA&C (33) WE&O (28)Population 2 4 1 1 2High 1 1 1 1 1Middle 1 1 1 1 1Low 1 1 1 1 1Open Seats +5 2 + 5 +2 +3 3 + 2Regional Seats 10 14 6 7 10Total UNEGG Council Seats: 47
The UNEGG CouncilAfrica (53) Asia (53) E. Eur (23) LA&C (33) WE&O (28)
Population 2 4 1 1 2
High 1 1 1 1 1
Middle 1 1 1 1 1
Low 1 1 1 1 1
Open seat 5 7 2 3 5Regional Seats 10 14 6 7 10
Conclusion• United Nations is well-positioned to play a
leading role in shaping an effective, representative and coherent system of global economic governance.
• We endorse the proposed model for a UNEGG Council
Thank You!•Alia and Mark
•Mr. Navid Hanif
•Ms. Madhushree Chatterjee
•The UN Ambassadors
•And of course, our Ambassador Rafat Mahdi