Chapter 1: Global and Domestic Governance
Definition: Global Governance
Global governance functions through a set of institutions, rules, and processes that aim to manage cross-border issues – like diplomatic relations, trade, financial transactions, migration, and climate change. It seeks to address collective concerns, and mediate common interests, creating both privileges and obligations for the public and private sectors. It is also essential for solving shared problems: pandemics, wars, and financial crises. It is not, however, just a set of treaties and organizations; it is comprised of a vast network of collaborative processes, relationships, guidelines, and monitoring mechanisms, which are all necessary to manage our increasingly complex interdependence.
This briefing is based on the views of a wide range of experts from the World Economic Forum’s Expert Network and is curated in partnership with Francesco Mancini, Vice Dean (Executive Education) & Associate Professor in Practice, and Dr. Marina Kaneti, Assistant Professor in International Affairs, at the National University of Singapore’s Lee Kuan Yew School of Public Policy. © 2023 World Economic Forum.
Governance at Different Levels
Global Level
Organizations like the United Nations (UN), World Trade Organization (WTO), and World Health Organization (WHO) drive global governance. They set standards, policies, and frameworks to address issues crossing national borders—like climate change, trade, and health crises. Global agreements, such as the Paris Agreement on climate change, aim to align countries on critical goals. However, they often lack enforcement power, relying on countries’ voluntary compliance.
National Level
National governments create laws and policies that respond to global directives but are tailored to their own interests and needs. A country might commit to reducing carbon emissions globally but choose economic policies that still support oil industries to protect jobs locally. This level faces the challenge of balancing international obligations with domestic priorities, especially when global goals seem to conflict with national interests.
Local Level
Local governments, such as city councils and regional authorities, are responsible for implementing many policies on the ground. They handle immediate community concerns and can innovate in ways that larger bodies cannot. For example, cities may adopt green energy initiatives even if national policies are slower to support them. However, local resources are often limited, and local actions can conflict with national policies, especially if the national government doesn’t provide support.
Alignments and Conflicts
Ideally, all three levels would work in harmony—global frameworks setting broad goals, national policies adapting them to the country’s context, and local authorities enacting them effectively. In reality, there are frequent conflicts: a global climate agreement may urge emission cuts, but a national government could prioritize industrial growth, while local communities might feel the impact of pollution. Achieving alignment often requires negotiation and compromise across these levels to ensure policies are both effective and fair.
At the global level, governance takes on a complex and interconnected role in shaping international regulations and addressing pressing global challenges. Corruption, defined as the abuse of power for personal gain or unfair advantage, can pose significant threats to effective governance and hinder progress on international agreements. Ensuring transparent and accountable governance becomes essential in fostering collaboration and achieving shared objectives.
Corruption is as old as humanity, with cases documented as far back as the Egyptian dynasties. While the World Bank estimates that international bribery exceeds $1.5 trillion annually, the larger and more subtle effects of corruption on economies and populations is incalculable.
Harvard Business School professors Geoff Jones and Tarun Khanna explore how corruption uniquely affects business in emerging markets, and why it should be addressed by the public and private sectors.
*the session starts at 0:30 seconds
HBR. (2022, May 31). Corruption: New Insights for Fighting an Age-Old Business Problem. Cold Call [Audio podcast episode]. https://hbr.org/podcast/2022/05/corruption-new-insights-for-fighting-an-age-old-business-problem
Colonialism
Historical implications, such as colonialism, have left lasting impacts on the dynamics between developing and developed countries, influencing global governance structures. It is vital to recognize historical power imbalances and work towards more equitable and inclusive governance systems that consider the needs and perspectives of all countries.
Neocolonialism and Climate Colonialism
What is Neocolonialism?
Neocolonialism is a form of indirect control that developed countries exert over developing nations. Unlike historical colonialism, where powerful countries would physically conquer and directly rule over other nations, neocolonialism occurs through economic, cultural, and political pressures. These pressures often keep poorer nations dependent on wealthier ones, limiting their ability to develop independently.
For example, a wealthier country might heavily influence the policies of a developing nation by providing loans, investments, or aid that comes with strict conditions. This can force the developing nation to prioritize the interests of the wealthier country, such as focusing on exporting cheap resources instead of developing a balanced, self-sufficient economy.
Language and Ideas. (2024, June 13). What is neocolonialism? [Video]. YouTube. https://www.youtube.com/watch?v=P2V3IC4dm20
Understanding Climate Colonialism
Climate colonialism refers to how wealthier nations impact the climate outcomes of poorer countries. The term points to the fact that richer countries, responsible for most of the greenhouse gas emissions driving climate change, often leave poorer nations to face the worst consequences. As a result, developing countries may struggle with environmental challenges like droughts, floods, and extreme weather, even though they have contributed far less to the problem.
One example of climate colonialism is the concept of “carbon offsetting.” When a company or country in the Global North (such as Europe or North America) buys “carbon credits” to offset its emissions, they often fund projects in the Global South (Latin America, Africa, Asia). While this may seem beneficial, it can lead to issues like land grabbing, where local communities lose access to their land for projects like massive tree plantations that serve foreign interests rather than benefiting local ecosystems or people.
Why Are These Concepts Important in Sustainability?
Neocolonialism and climate colonialism highlight the need for fairness in global sustainability. Achieving global sustainability means ensuring that no country unfairly bears the burden of climate change caused by others. It also means promoting policies that allow all nations to develop sustainably without becoming dependent on wealthier nations in exploitative ways.
Understanding these dynamics is essential for addressing global issues like climate change in ways that are both effective and just. By being aware of the imbalances and working toward equitable solutions, we can strive for a more sustainable future that respects the needs and rights of all communities.
International Cooperation on Sustainability Issues
This video explains more about the systems and institutions that foster cooperation and interdependence between states in the world of global politics.
Korczyk, P. (2022, January 17). Global governance in international relations explained [Video]. YouTube. https://youtu.be/r4Fn3qU2PQ0
Conflicts between countries and global regions can arise due to divergent interests and priorities. Effective governance at the international level involves finding common ground and building collaborative solutions to address these conflicts.
Corporate influence and lobbying at the global level can also shape policy decisions and international regulations. To promote sustainable and inclusive governance, it is crucial to balance corporate interests with broader societal and environmental concerns.
Governance plays a pivotal role in achieving the Sustainable Development Goals (SDGs), providing a framework for collaboration and collective action. Effective governance helps align international efforts toward achieving these goals, fostering global sustainability and leaving no one behind.
This graphic depicts the new agents of change that are appearing in governance structures. Timeline: shows a number of initiatives from 1922 to 2015, and their private, public or hybrid status. These initiatives are increasingly interconnected (web of biodiversity governance example).
Global governance has far-reaching implications, ranging from addressing corruption and conflicts to recognizing historical imbalances and promoting sustainable development. Effective governance at the international level is crucial in shaping regulations and fostering collaboration between countries and regions.
Knowledge Check!
Resources
- Combatting corruption in international business. (2021, April). Export Development Canada (EDC). https://www.edc.ca/content/dam/edc/en/non-premium/combatting-corruption-in-international-business.pdf
- Muratbekova-Touron, M., Park, C. L., & Nunes, M. F. (2022, November 25). Coping with corruption: Companies should consider context. World Economic Forum. https://www.weforum.org/agenda/2022/11/how-companies-should-cope-with-corruption/
- The 2022 Corruption Perceptions Index (CPI) [Interactive Map]. (2022). Transparency International. https://www.transparency.org/en/cpi/2022
Resources for Lab Class:
- CTV News. (2024, October 29). Alberta files court challenge on carbon tax [Video]. CTVNews. https://www.ctvnews.ca/video/c3020580-alberta-files-court-challenge-on-carbon-tax
- Environment and Climate Change Canada. (2024, June 17). How carbon pricing works. Canada.ca. https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/putting-price-on-carbon-pollution.html#toc3
- Fernandes S. (2022, February 7). History Lesson – Carbon Pricing in Canada. Brightspot Climate. https://brightspot.co/library/history-lesson-carbon-pricing-in-canada/
- Lévesque, C. (2024, June 13). Carbon tax will cost $25B in GDP in 2030, Liberals’ own data show. National Post. https://nationalpost.com/news/canada/carbon-tax-will-impact-gdp-by-25-billion-in-2030-internal-data-released-by-liberals-shows#:~:text=Environment%20and%20Climate%20Change%20Canada,in%20real%20GDP%20in%202030
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption may involve many activities which include bribery, influence peddling and embezzlement, and it may also involve practices which are legal in many countries.
~~ Wikipedia
Colonialism is a foreign state or nation's domination of a people or area: extending and maintaining a nation's political and economic control over another.
(Merriam-Webster Dictionary)
The act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies, but also judges of the judiciary.
~~ Wikipedia