PEGGED · Politics, Economics and Global Governance: The European Dimensions

The long-standing US-EU partnership and dominance of a range of international institutions (IMF, World Bank, Security Council, etc.) is rapidly breaking down under the impact of shifting interdependencies and power relationships. In this sense, global economic governance is at a crucial crossroads. If a more complex and multi-polar world is now emerging, interwoven with bilateral agreements and a proliferation of regional efforts of uncertain outcome and dimensions, it is unclear how co-operation will be organised in the future and by whom. Global economic governance is riddled with worrisome uncertainties, yet this offers clear opportunities for an alliance between scholars pushing the bounds in terms of analysis, and EU policy entrepreneurs in terms of action. Europe must play a major part in the reform and reinforcement of global governance mechanisms, but in order to do so the EU requires a clear definition of its self-interest, a correspondingly clear sense of purpose and objectives, and the internal coherence and institutional capacity to exercise leadership. Now is the time for Europe to project a vision of how the global system should evolve, and to act. The project begins with five research domains: i) macroeconomic adjustment and governance; ii) the integration of markets for finance and investment; iii) the integration of markets for trade in goods and services; iv) migration and the mobility of labour; v) environmental governance. hese are questions where a combined analysis by political scientists and economists is necessary if workable and real-world policy solutions are to be developed and prevail. Ultimately, the legitimacy of global governance depends on input and representation in the decision-making process of global governance, and on the output or policy outcome in terms of growth, distribution, and compensation for the losers.