Global governance

This was highlighted by Commissioner Ashton during the EU- China talks. EU Trade Commissioner Catherine Ashton and Chinese Vice- Premier Wang Qishan stressed at the Second meeting of the EU- China High level Trade and Economic Dialogue (HED) the necessity of economic openness in order to tackle the financial and economic crisis. The Dialogue which took place between 7/8 of May, included a discussion on ‘trade, investment and competition; small and medium-sized companies; customs cooperation; sustainable development including low carbon economy; energy; food safety and trade in food, consumer protection and product safety; healthcare; innovation and intellectual property rights; geographical indications; technology and information society; and transport.’. Both China and the EU delegation supported growth and trade opportunities for Small and Medium-sized Enterprises (SMEs).

Source: European Commission Audiovisual Service

On Thursday of next week leaders from the world’s 19 largest national economies (including France, Germany, Italy, and the UK) plus the European Union will meet in London to discuss the economic crisis. They will seek to make three commitments, namely to stabilize financial markets, to strengthen the global financial and economic system, and to steer the global economy towards sustainable growth. Against these lofty ambitions, leaders such as US President Obama and British Prime Minister Brown have already downplayed the potential of this Summit to produce revolutionary change. As is typical for G20 meetings, tensions in London are already on the rise as plans for mass protests and demonstrations are being publicized.

Image: www.flickr.com/ Downing Street

On Friday March 20, EU leaders met to establish a common strategy ahead next month’s G20 Summit in London. EU member states will collectively advocate for tighter global regulation of financial markets, and a stricter approach to tax havens. EU members of the G20 will ask their fellow members to guarantee ‘appropriate regulation and oversight of all financial markets, products and participants that may present a systemic risk, without exception and regardless of their country of domicile.’ The head of stated decided to double loans available to eastern Europe to 50 billion euro and to support the IMF with additional 75 billion euro.

Image: []European Commission Audiovisual Service->http://ec.europa.eu/avservices/down...

Who knows, maybe 2008 will be marked in History as a repetition of 1929. While at the outset, some expected the financial crisis to be a strictly American phenomenon, very rapidly it spread to Europe. Notorious banks such as Fortis, Dexia or the WestLB, to name just a few, had to be rescued by the state. During the European crisis summit in early October the heads of state of the Eurozone agreed to act together to resolve the crisis, and to help out the banking system with millions of euros. However, the resistance of the German government especially prevented the creation of a European safety fund. The European commission nevertheless promised an investment package of over 200 billion euros. The European Central Bank (ECB) that has so far proved very reluctant to take big steps, started became increasingly nervous. In early December it lowered the key interest rate in a historic step of 75 points to the level of 2,5 percent. The reason for this surprising action lies in the negative growth forecasts for the Eurozone. Instead of 0,6 to 0,8 percent growth, most of the member states are facing a recession. The year 2009 is going to be a tough economic year.

Photo: www.flickr.com; pnoid00

Pascal Lamy, Director General of WTO, summoned a last chance meeting in Geneva this Monday 21 July, bringing together thirty trade ministers among the 153 members to the organisation. Taking into account the electoral calendars of the main partners and the general economic situation, which tends to favour protectionnist views, this ministerial meeting will either lead to an agreement on the Doha Round, or freezing negotiations for a while. The Doha Round, launched in 2001, is the ninth cycle of international trade negotiations aiming at lowering cross-border tariffs since 1945. Current negotiations are lagging as they are not only involving ten developed countries like in the past, but 153 member states launched in a worldwide barter of thousands of products. If Mr. Lamy’s bet fails, trade wars and bilateral agreements risk multiplying, which very few will benefit from.

If you have not heard enough about climate change here is your chance. The United Nations Framework Convention on Climate Change (UNFCCC) is the dreadfully long and clumsy name of the international juridical framework within which climate change is addressed. The Kyoto-protocol is the most visible product of this framework. On the homepage of the UNFCCC you can find statements, news, background info and webcast from the 14 long days on Bali. Besides that you can find background information, several publications and information on the Kyoto-protocol.

Official homepage of The United Nations Framework Convention on Climate Change

After 14 days of heated debate they got a result. Not on a post-Kyoto framework to combat climate change. Oh no. What the diplomats from 187 countries managed to hammer out was only the roadmap that eventually could lead to an agreement in 2009 in Copenhagen, Denmark. The two weeks gave examples of international UN diplomacy at its finest. Or most ugly depending on the interpretation you prefer. Expectations were high before the meeting. After only a couple of days one thing was clear: there was absolutely no agreement on anything. Everything was in the air, everybody was having meetings with everybody and it was absolutely impossible to make out what was going on through the regular news channels. When the US finally accepted the end declaration the whole conference had gone 20 hours over schedule, UN chief negotiator Yvo de Boer had broken down crying and the result was vague and exactly as nitty-gritty as expected. For the climate the result was bad and insufficient. Nevertheless the result was hailed as ambitious in recognition of what the UN system is capable of producing. The road to Copenhagen 2009 is now paved but the 14 days in Bali promises that it is going to be a very, very bumpy ride.

57% of the world’s population thinks that China will be the world’s most important global player in 2020. This is the result of a global survey conducted by the German foundation Bertelsmann Stiftung among citizens in major global states. It opposes itself to the 81% who think that the US is today’s world super-power. Regardless of the fact that the reliability of opinion polls – especially on a global scale - can be questioned, the poll touches right on a question that will heavily influence international relations throughout the next decades. On the other side of the Atlantic they are already asking themselves how the scenario portrayed in the poll can be avoided. The mutual vigilance can, for instance, be observed in the climate change negotiations where both parties refuse anything that can potentially damage the economic interests relative to the other part. The battle has begun. We have not seen anything yet.