Inclusive and Effective Global Economic Governance: A challenge of our times Graduate Program in International Affairs Practicum in International Affairs Presentation Client: United Nations Department of Social and Economic Affairs Strategic Planning Department Aditi Shukla Manjola Karame Martine Nedregård Martin Wøldike Advisor: Ambassador Rafat Mahdi

UN Resolution: Secretary -General’s Report Reaffirm UN’s role in global economic governance

Client United Nations Department of Economic and Social Affairs ▫Strategic Planning Division

Client Objective Find a solution to the current state of global economic governance Put the UN on center stage

“In what way can the UN system be strengthened to play a leading role in global economic governance facilitating both more coherent and better coordinated multilateral policy responses to global challenges?” Client Objective

Background Failure of international community to handle crisis through a representative body Weaknesses of current international economic system highlighted Current system inadequate How can the UN play a leading role?

Methodology Qualitative Research Methods Interviews with prominent UN Ambassadors ▫G20 ▫Global Governance Group

Why the UN? Of its universal character with ▫Inclusive representation ▫Global outreach ▫Long expertise Widely regarded as legitimate Can create international law

Dilemma: Efficacy v. legitimacy and inclusiveness

Deficits in Global Economic Governance Coherence Legitimacy Inclusiveness Effectiveness

Lack of Coherence Myriad of actors, but little coordination Gaps to bridge and overlaps to break Will improve general effectiveness How to address the incoherence in a legitimate and effective way?

Lack of Legitimacy Need for inclusiveness/outreach/representation Need for effectiveness

Balancing Effectiveness and Inclusiveness Tradeoffs between effectiveness and inclusiveness What is the “optimal” balance?

Criteria Criteria of the selection of the 47 countries in the United Nations Economic Global Governance Council: ▫Population density ▫Nominal GDP ▫Number of states in the region Effectiveness and inclusiveness of a global economic governance body are most efficiently maintained through a model of regional representation

UN Regional Groupings Council is organized in terms of the five UN Regional Groups: ▫Africa —53 countries ▫Asia —53 countries ▫Eastern Europe —23 countries ▫Latin America and the Caribbean —33 countries ▫Western Europe and Others —28 countries

UNEGG Council Seat Allocations AfricaAsiaE.EurLA&CWE&O Seats Total UNEGG Council Seats: 47

Population Sub-Group Population ▫In order to represent countries with substantial populations. ▫Countries with the largest population must be present to make a substantial impact and effect a large body of people

GDP Sub-Groups 3 subgroups dedicated to the three nominal GDP divisions of high, middle and low in the region: ▫Economic diversity ▫Seat eligibility

Baseline UNEGG Council Seat Allocations Africa (53)Asia (53)E. Eur (23)LA&C (33)WE&O (28) Population +1 High +1 Middle +1 Low +1 Regional Seats 44444

Seats Based on Percentage of World GDP Proportion of seats should be allocated based on the region’s access to the resources in question for the sake of effectiveness of the council- 15% threshold: ▫Every 15% share of total world GDP a region is allocated an additional seat.

Percentage of Total World GDP by Region Region Regional Nominal GDP/World Nominal GDP% of Total World GDP Africa1,715,480 / 62,930,  2.7% Asia18,673,481 / 62,930,  29.7% Eastern Europe3,079,217 / 62,930,  4.9% Latin America & Caribbean4,889,582 / 62,930,  7.8% Western Europe and Others34,572,965 / 62,930,  54.9%

Calculation of “15%Threshold” Seats by Region Region % of World GDP Rounded Up % of World GDP (Rounded Up) / 1515% Rule Seats Africa3%3/15 =.20 Asia30%30/15 = 22 Eastern Europe5%5/15 =.3330 Latin America & Caribbean8%8/15 =.5330 Western Europe and Others55%55/15 =

UNEGG Council Seat Allocations + World GDP “15% Threshold” (53) E. Eur (23)LA&C (33)WE&O (28) Population High Middle Low Open Seat Regional Seats Total UNEGG Council Seats: 25

Open Seats The region will be permitted to democratically allocate their open seats as they see fit. There are no restrictions on the nomination for the seats other than membership in the region. Flexibility ▫Acceptance of the Council ▫Encourage energetic participation.

UNEGG Council Seat Allocations + World GDP “15% Threshold” (53) E. Eur (23)LA&C (33)WE&O (28) Population11111 High11111 Middle11111 Low11111 Open Seat Regional Seats46447 Total UNEGG Council Seats: 25

Population Size The largest populations must have a seat at the table as their decisions impact a large proportion of the global economy.

Seats Based on Percentage of World Population The “>1% rule” will ensure that all member states with populations exceeding 1% of the world population are eligible for nomination for the regional population seat. Each region is given an additional seat for every third country which accounts for greater than 1% of the world’s population.

Seats Based on Percentage of World Population RegionCountries with >1% of World Population Number of Countries Additional Population Seats AfricaNigeria, Egypt, Ethiopia31 AsiaChina, India, Indonesia, Pakistan, Bangladesh, Japan Philippines, Vietnam, Iran 93 Eastern EuropeRussia10 Latin America & CaribbeanBrazil, Mexico20 Western Europe & OthersUnited States, Germany, Turkey31

Seats Based on Percentage of World Population AfricaAsiaE.EurLA&CWE&O Population High Middle Low Open Seats Regional Seats Total UNEGG Council Seats: 30

Seats based on States to Seat Ratio “10:1 ratio”– calls for the allocation of an additional seat for every 10 member states in a region

Seats based on States to Seat Ratio Region Number of Member States Number of Member States/10 “10:1 Ratio” Seats (rounded down) Africa 5353/10 = 5.35 Asia 5353/10 = 5.35 Eastern Europe 2323/10 = 2.32 Latin America & Caribbean3333/10 = 3.33 Western Europe and Others 2828/10 = 2.82

UNEGG Council Seat Allocations + 10:1 Ratio Africa (53)Asia (53)E. Eur (23)LA&C (33)WE&O (28) Population High Middle Low Open Seats Regional Seats Total UNEGG Council Seats: 47

The UNEGG Council Africa (53)Asia (53)E. Eur (23)LA&C (33)WE&O (28) Population24112 High11111 Middle11111 Low11111 Open seat57235 Regional Seats

Conclusion United Nations is well-positioned to play a leading role in shaping an effective, representative and coherent system of global economic governance. We endorse the proposed model for a UNEGG Council

Thank You! Alia and Mark Mr. Navid Hanif Ms. Madhushree Chatterjee The UN Ambassadors And of course, our Ambassador Rafat Mahdi