Promises and perils of new global governance: examining the new role of the G20

Abstract
In the wake of the financial crisis of 2008, a new global governance structure emerged. During and subsequent to the crisis, the G20 arose as a coordinating executive among international governance institutions. It set policy agendas, prioritized initiatives and, working through the Financial Stability Board, drew other governance institutions and networks such as the World Trade Organization (WTO), the International Monetary Fund, The Basel Committee on Banking Supervision, the Organisation for Economic Co-operation and Development (OECD) and the International Organization of Securities Commissions to set standards, monitor enforcement and compliance, and aid recovery. Its authority cross-cuts regimes and creates collaborative linkages between economic law and social issues such as food security and the environment. Its leadership role, born, in some sense, out of exigency, continues to evolve as part of the new order of international economic law.

The G20’s executive role presents new opportunities for coordination and collaboration among the wide variety of institutions and networks operating under its umbrella. The institutions and networks now engage in an ongoing dialectical process that propels standard setters towards convergence on a number of fronts. As a practical matter, this convergence may be desirable and even necessary. But the complexity of this process should not stop us from closely analysing the legitimacy criteria supporting this framework as well as the legitimacy gaps.  While the new economic order offers avenues for better transparency and implementation, it also poses serious legitimacy challenges. In particular, important questions concerning the participation of civil society, development, and the danger of capture must be addressed. We propose to examine this new global governance order with the G20 at the helm, considering the theoretical underpinnings of governance networks, and in particular focusing on the G20’s emerging relationship with the WTO, the United Nations Conference on Trade and Development (UNTAD) and the OECD.