In response to the mounting global economic crisis, CIGI (Canada) and Chatham House (UK) launched a major research project in November 2008 to examine the re-ordering of global balance of economic power. This two-year project will include regular contributions from Instituto Affari Internationali (Italy) and the Chinese Academy of Social Sciences, paying particular interest to the G8/G20 process, exploring the national and multilateral policy responses, and providing recommendations for reform of the international financial and monetary architecture.
The project looks ahead to the next phase of recovery in the world economy after the recent and ongoing shocks. It will aim to discuss and suggest how to rebuild the global financial system and instill it with the highest levels of transparency and trust to prevent any repeat of the current crisis.
Focusing primarily on the G8/G20 management of the economic crisis, it will question how these forums contribute to reforming the system and integrating the emerging economies. Global markets, and in particular the international monetary and financial system, is the area in which the analysis will be carried out. The research agenda will focus on the following questions:
- What new rules are necessary to bring the crisis to an end and contain the financial risk of banks and financial institutions within manageable perimeters?
- Which organization should be responsible for enforcing the new rules – can existing organizations such as the IMF, G8 or Bank for International Settlements take up the role – or should a completely new body be created?
- Which nations need to be represented in this new regulatory body – the BRICs, Saudi Arabia – and are new actors ready and willing to take on this role?
- What are the key conflicts between international and national governance and what decisions need to be taken at which level? While financial stability is a global public good, how to proceed in cases when the objectives of one country conflict with the interests of another?
In addition to this blog, a set of briefing papers will be published on topical issues on the G8/G20 agenda. The principle output of this project will be a special issue of International Affairs examining “Global Economic Governance in a World of Crisis” (edited by Paola Subacchi and Andrew F. Cooper, May 2010).
For more information, see CIGI project description.