Economic governance for crisis prevention

UNDP Response to the Syian Crises Overview Seven years into the Syrian Crisis, Lebanon is at a very delicate juncture and the need for broad, unified and determined engagement is now more critical than ever before.

Economic governance for crisis prevention

The leaders of major economies will be gathered again to determine their collective actions towards inclusive and robust growth.

As a main platform on international economic governance, G20 has framed the world's efforts to restore economic and financial stability since its inception in By standards of historians, 17 years is like the moment it takes for a galloping horse to cross a crack in the ground, as the Chinese metaphor describes.

Economic governance for crisis prevention

Nevertheless, 17 years are long enough for some tectonic shifts to take place in this world. Change, is one of the most important and surest facts of life we have to live and deal with in public policy, be it international or domestic. The first of those are changes in the world economy.

In that respect, the picture is seemingly mixed at this moment.


The good news is that with growth firming in most of the major developed countries, the world economy as a whole may finally be out of the woods.

There is also a downside, however. Fragility still persist and divergence is growing between countries in both performance and policy stance and priorities. Lately, there has been some intense interest in the state of the Chinese economy, which comes as no surprise, since Chinese economy has taken the second place globally.

We have become a victim of our own success. Multi-year double-digit growth has helped to form unrealistic or in some cases, even distorted expectations.

To put things in perspective, China's growth easing as the economy expands is not out of line with the development trajectory of other countries. More importantly, lowering the speed of growth, albeit painful sometimes, will create space for structural reform and adjustment that leads towards better quality and greater sustainability for growth over the long run.

The second set of changes relate to international economic cooperation. The G20 summit process started off as a crisis response and management platform.

Measured against that mission, its efficacy has proved remarkable.

The economic governance for crisis prevention Free Essay Example |

The prospect of a global meltdown focused minds and galvanized actions that would otherwise have been impossible. Through macro-economic policy coordination, the major developed and emerging market economies of the world succeeded in containing the crisis, and later improved crisis preparedness through financial sector and international architecture reforms.

G20 cooperation also helped to engineer a gradual recovery. As the crisis is put behind us, the sense of urgency is, honestly, no longer what it used to be. There is even a real risk of cooperation or reform fatigue and of complacency.

One clear indication is the lack of progress in implementing the IMF quota and governance reform package. We have to realize that in spite of the progress made, prevention of future crisis is far from assured.

And no crystal ball can tell us when, where or how the next crisis will occur. We must not allow a false sense of security to lull us into business as usual and wait for the next crisis to happen. What we can and should do is to learn our lessons and keep our powders ample and dry, to minimize the chances of another crisis and be prepared once it hits again.

Economic governance for crisis prevention

Beyond G20, a lot is going on, turning into potentially another major milestone for international economic cooperation.

On development, world leader have reached agreement in New York on Sustainable Development Agenda. The next and bigger challenge is to make sure that promised actions will materialize in the next 15years, and that the agreed goals will be met in time.The study then attempts to investigate the links between economic governance and the Asian financial crisis in , and the roles the economic governance could have played in the recovery process since the above countries had somehow recovered at somewhat different speed.

These economic governance reforms aimed at both enhancing crisis management and crisis prevention. They involved intense negotiations among the member states and EU institutions in the heat of the crisis.

emerging crisis of governance that, if not soon resolved with political reform, could lead to long-term economic and social stag-nation and increased political instability in the world’s largest country.

Meanwhile, on The central cause of China’s governance crisis is the decay of the ruling CCP. Given the.

Loukas Tsoukalis and Janis A. Emmanouilidis

Good regulatory governance in the financial system is a critical component of financial stability. Research on the topic has not been very systematic and deep.

This paper first defines four key components of regulatory governance-independence, accountability, transparency, and integrity. Governance roles in crisis prevention. The rapid pace and spread of globalization pose stiff challenges to economic governance as new criteria and developments may impose a heavier governance burden on the government and economy.

Not surprisingly after a global financial crisis, the economic and financial sectors are areas where a new concept of global governance has been decided, and we can expect a number of tests of this new bold concept in the years to come.

Crisis Prevention and Crisis Management : The Role of Regulatory Governance