Enhancing the effectiveness of the G20 : Asian perspectives.

• Main Author: He, Linlin.
• Other Authors: Pradumna Bickram Rana
• Format: Theses and Dissertations
• Language: English
• Published: 2014
• Subjects: DRNTU::Social sciences
• Online Access: http://hdl.handle.net/10356/55265
• Institution: Nanyang Technological University

Since the 1997-1998 Asian Financial Crisis, the need for a more inclusive and balanced global economic architecture was increased greatly. A series of measures have been carried out, in the area of international finance, trade and development. In the area of finance, the most significant measure was the establishment of the Group of Twenty (G20) process at Financial Ministers and Central Bank Governors level. The 2008-2009 Global Financial Crisis further highlighted the flaws of the current international financial architecture, and the ministerial level "G20 process was upgraded to a Leader's forum, enhancing its role in crisis management and crisis prevention efforts. The G20 itself has evolved internally, in terms of its membership, agenda, and internal decision-making structure. However, in the post-crisis era, the political will "of member countries has began to fade, especially for the advanced economies, since the adverse impact of the financial crisis seems to be less severe than expected. The G20 appears to be less effective with limited progress and achievements. One has to admit, however, that the G20 is still more inclusive than the G7/G8, with emerging economies actively engaging in global economic governance for the first time. Therefore, it is imperative that emerging market economies, especially those in Asia be actively involved in strengthening the G20 mechanism and enhancing its effectiveness. This dissertation conducts a critical assessment of the G20 process by highlighting its achievements and analyzing its strengths and weaknesses. A thorough literature review of existing proposals made by various academics and politicians to reform the G20 is conducted. The research then argues that it may be too optimistic and unrealistic to carry out a big-bang reform and establish a new mechanism to replace the G20, but believes that the G20 was not created to save the world, and as a process, it needs to and could be improved and revived, especially through the efforts of Asian countries. This critical analysis will lead to policy recommendations through Asian perspectives, to solve the G20's input and output legitimacy deficiency and strengthen the G20's effectiveness in global economic governance.