Chapter 2: Global 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.
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
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.
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
