A Framework for Assessing Global Economic Governance

Abstract

Increased globalization over the last twenty years has made effective global economic governance more important than ever. This period has witnessed the rise of a number of new international governance actors, such as the Group of Twenty and the Financial Stability Board. This Article proposes a five-part test to evaluate how the existing global governance actors serve the interests of all stakeholders in the global economy. The test is based on four fundamental indicators of good global governance. The Article uses the five-part test to evaluate the G20’s performance at the G20 Summit at Los Cabos, Mexico. Finally, this Article concludes that the G20 is not fully satisfying any of the five parts of the test, and therefore fails to reach its full potential as a global economic governance actor.

Keywords: global economic govenance, G-20, assessing governance

JEL Classification: F02, F33, K23, K33