Foundations of the Pieces of Global Governance

Week 4Chapter 3, pp.63-93

In this lecture…

• Historical evolution of international system in terms of global governance

• 19th century governance attemps• The developments of 20thcentury• League of Nations• Functional and Specialized Organizations• Bretton Wood System

The State System and Its Weaknesses!

• Contemporary state system traced back to Treaty of Westphalia in 1648.

• Articles 64, 65, and 67 established several key principles of a new state system: • territorial sovereignty; • the right of the state (prince or ruler) to choose its religion

determine its own domestic policies; • and the prohibition of interference from supranational

authorities like the Church.• The treaty marked the end of rule by religious

authority in Europe and the emergence of secular states.

• Sovereignty was the core concept of this state system.• Although there is no supreme arbiter among states, Jean

Bodin acknowledged that sovereignty may be limited by divine law or natural law, by the type of regime. Or even by promise to the people.

• Grotius also rejected the concept that states have complete freedom to do whatever they wish. Thus, even in the seventeenth century, the meaning of state sovereignty was contested and limited.

• James Rosenau (1997) is another IR scholar who argues states as vulnerable to demands from below –decentralizing tendencies including domestic constituencies and non-state actors- and from above, including globalization processes and international organizations.

• The weakness of the state system became increasingly apparent after the middle of 19th century with increasing international trade, immigration, democratization, technological innovation, and other developments that undermine the capacity of state to govern effectively. These changes gave rise to the earliest international organizations.

Governance Innovations in the 19th Century

• There are three pillars of 19th century governance

–The Concert of Europe (think about like the UN Security Council body in the 19th century)Britain, Russia, Prussia, Austria and France

–Public International Union –The Hague System

The Concert of Europe• The first pillar was a concert of major powers making systemwide

decision by negotiation and consensus, a king of informal intergovernmentalism.

• States agreed to coordinate behavior based on certain rights and responsibilities with expectations of diffuse reciprocity.

• The concert of Europe was established in 1815. The concert system involved… – Practice of multilateral meetings rather than bilateral diplomacy

among the leaders of major powers for the purpose of settling problems and coordinating actions.

– Multilateral consultation– Collective diplomacy– Special status for great powers

Public International Unions• Public international unions were another important organizational

innovation.• Agencies were initially esteblished among European states to dealt with

problems stemming from the industrial revolution, expanding commerce, communications and technological innovations.

• These functional problems involved such concerns as health standarts for travelers, shipping rules on Rhine River, increased mail volume, and the cross-boundary usage of the newly invented telegraph.

– The International Telegraph Union, 1865– Universal Postal Union, 1874– The international labor movement provided another model.– First International (1864), Second International (1872), Third

International (1919-1943)

The Hague System--the third governance innovation in the 19th century was the emergence of generalized conference in which all states were invited to participate in problem solving.

--In 1899 and 1907, Nicholas II of Russia convened two conferences in the Hague (Netherlands), involving both European and non-European states, to think

a) proactively about what techniques states should have avaliable to prevent war

b) under what condition arbitration, negotiation, and legal recourse would be appropriate The Results of the system

a) Convention for the Pacific Settlement of International Disputesb) ad hoc international comission of inquiryc) the Parmanent Court of Arbitration

• The Hague Conference also produced several major procedural innovations– In the first time, participants included both small and non-European

states– States have equal rights/voieces

• Twin principles of universality and legal equality of states – After the 19th century state system became trully international

system in terms of global governance and IOs.– For the fisrt time,

• Participants utilized such techniques as electing chairs, organizing committees, and taking roll call votes.

– The Hague Conference also promoted the novel ideas of common intrests of humankind and the codoification of international law.

The Legacy of the 19th Century

• 19th century innovations served as a vital precursor to the development of modern international organizations and to the broader notion of global governance in the 20th century.

• The idea of multilateral diplomacy of concert system.• The cooperative institutions of the public international unions• The broader legalistic institutions of the Hague system.• Yet the institutional arrangements of the 19th century proved

inadequate for preventive war among the major European powers.

• Interdependence and cooperation in other areas of interest proved insufficient to prevent war when national security was at stake.

Multilateralism in the 20th Century

• In international relations, multilateralism is multiple countries working in concert on a given issue.

• Multilateralism was defined by Miles Kahler as “international governance of the ‘many,’” and its central principle was “opposition [of] bilateral discriminatory arrangements that were believed to enhance the leverage of the powerful over the weak and to increase international conflict.”

• In 1990, Robert Keohane defined multilateralism as “the practice of coordinating national policies in groups of three or more states».

• 20th century was marked by the development of numerous international organizations, both small and large, geneal purpose and specialized, govermental and nongovernmantal .Figure 3.1

League of Nations: Learning from Failure

• The League of Nations (LN) was an intergovernmental organization founded as a result of the Paris Peace Conference that ended the First World War.

• It was the first international organization whose principal mission was to maintain world peace.

• Its primary goals preventing wars through collective security and disarmament, and settling international disputes through negotiation and arbitration.

They symbolized the Earth's five continents and five "races".

League Principles

• Almost one-half of the League Covenant’s twetny-six provisions focused on preventing war.

• Two basic principles were paramount!– Member states agreed tp respect and preserve the

territorial inregrity and political independence of states– Member agreed to try different methods of disputes

settlement, but failing that, the League was given the power under Article 16 to enforce settlements through sanctions

• Collective security: that agression by one state should be countred by all acting togather as a «league of nations.»

League Organs• The main constitutional organs of the League were the Assembly, the Council, and the

Permanent Secretariat. It also had two essential wings: the Permanent Court of International Justice, and the International Labour Organization.

• In addition, there were a number of auxiliary agencies and commissions. Each organ's budget was allocated by the Assembly (the League was supported financially by its member states).

• Each body could deal with any matter within the sphere of competence of the League or affecting peace in the world. Particular questions or tasks might be referred to either.

• Unanimity was required for the decisions of both the Assembly and the Council, except in matters of procedure and some other specific cases, such as the admission of new members.

• the League sought solution by consent, not by dictation.• The staff of the Secretariat was responsible for preparing the agenda for the Council and

the Assembly and publishing reports of the meetings and other routine matters, effectively acting as the League's civil service.

• In 1931, the staff numbered 707.

Palace of Nations, Geneva, the League’s headquarters from 1929 until its dissolution

• The Assembly consisted of representatives of all members of the League, with each state allowed up to three representatives and one vote.

• The League Council acted as a type of executive body directing the Assembly's business.It began with four permanent members (Great Britain, France, Italy, Japan) and four non-permanent members that were elected by the Assembly for a three-year term.

• The first non-permanent members were Belgium, Brazil, Greece and Spain

• James Eric Drummond (17 August 1876 – 15 December 1951) was a Scottish representative peer, a British diplomat and the first Secretary General of the League of Nations

Succes and Failure

• The onset of the Second World War demonstrated that the League had failed in its primary purpose, the prevention of another world war. There were a variety of reasons for this failure, many connected to general weaknesses within the organization. Additionally, the power of the League was limited by the United States' refusal to join.

a) Origins and structure• The origins of the League as an organization created by the Allied powers

as part of the peace settlement to end the First World War led to it being viewed as a «League of Victors».

• The League's neutrality tended to manifest itself as indecision.– The failure to act when Japan invaded Machuria in 1931 pointed to the

organization’s fundemental weakness: the council’s refusal to take decisive action (no economic and military actions)

– the League’s repsonse to the Italian invasion of Ethiopia in 1935 further undemined its legitimacy. Economic and military sanction were insufficient to make Italy retreat form its aggression.

– The Leagaue neither intervened in the Spanish civil war nor opposed Hitler’s remilitarization of Rhineland and occupation of Austrai and Czechoslovakia.

– The League of Nations was also unable to respond to the economic depression of the 1930s and the rise of extreme nationalism.

– The League was silent during the six year of WWII from 1919-1945.

b) Global representation• Representation at the League was often a problem. Though it was intended to

encompass all nations, many never joined, or their time as part of the League was short.– In January 1920, when the League was born, Germany was not permitted to join

because it was seen as the aggressor in the First World War. – Soviet Russia was also initially excluded, as communist views were not welcomed by

the victors of the war.– The League was further weakened when major powers left in the 1930s

• The most conspicuous absence was the United States. President Woodrow Wilson had been a driving force behind the League's formation and strongly influenced the form it took, but the US Senate voted not to join on 19 November 1919.

• Ruth Henig has suggested that, had the United States become a member, it would have also provided backup to France and Britain, possibly making France feel more secure and so encouraging France and Britain to cooperate more fully regarding Germany, making the rise to power of the Nazi Party less likely.

c) Collective security• Another important weakness grew from the

contradiction between the idea of collective security that formed the basis of the League and international relations between individual states.

• The League’s collective security system required nations to act, if necessary, against states they considered friendly, and in a way that might endanger their national interests, to support states for which they had no normal affinity.

• Ultimately, Britain and France both abandoned the concept of collective security in favour of appeasement in the face of growing German militarism under Hitler

Appeasement is a diplomatic policy aimed at avoiding war by making concessions to an aggressor.

d) Pacifism and disarmament

• Its two most important members, Britain and France, were reluctant to use sanctions and even more reluctant to resort to military action on behalf of the League.

• The British Conservatives were especially tepid to the League and preferred, when in government, to negotiate treaties without the involvement of that organization.

• Foreign Office minister Sir Eyre Crowe also wrote a memorandum to the British cabinet claiming that "a solemn league and covenant" would just be "a treaty, like other treaties".

Part IIThe Strengthening of Functional and Specialized

Organizations• Single-function organizations have been

established to adress specific problems.• Six major areas of funtional activitiy• Healt, communication and labor are activities

whose international approaches began in the 19th

• Global approaches for economic, refuge and agriculture and food issues were developed during the 20th century.

Healthcare and the World Health Organization

• One of the oldest areas of functional activity is health, an issue that respects no national boundaries.

• No one states could solve health problems alone. Cooperation is required.

• In response to an outbreak f cholera in Europe, the International Sanitary Conference was convened in Paris in 1851 to developed collective response based on increased knowledge about public health and medicine and improvements in sanitation.

• In 1907 the Office Int. d’Hygiene Publique (OIHP) was created, with a mandate of disseminate information on communicable diseases such as cholera, yellow fever.

• In 1948, a single health organization, WHO came into being as a UN specialized agency.

WHO’s main objevtives• WHO identifies its role as one of six main objectives:1) providing leadership on matters critical to health and engaging in partnerships where joint action is needed;2) shaping the research agenda and stimulating the generation, translation and dissemination of valuable knowledge;3) setting norms and standards and promoting and monitoring their implementation;4) articulating ethical and evidence-based policy options;5) providing technical support, catalyzing change, and building sustainable institutional capacity; and6) monitoring the health situation and assessing health trend

Three major areas of WHO activities

1) Expanded from that of predecessor organizations, is providing security against the spread of communicable diseases. Globalization is an important process to expansion of WHO activities and the broadening of global health governance through new actors. HIV/AIDS. 9/11 Sarin nerve gas attack in 1995

2) Eradication programs for certain diseases and working with state health authorities to improve health infrastructure. 3) The third area of WHO activity includes interaction with MNCs, namely the pharmaceutical industry.!!!That relationship has been a contentious.Since the 1990s. Another contentious issue has been in the WHO’s agenda: Tabacco

• The struggle between WHO and tobacco companies

• WH Assembly approved the Framework Convention on Tobacco Control in 2003, which has been advertising of tobacco products, requires health warnings on packaging, and create broader liability for manufacturing.

• This had been ratified by 165 parties as of 2009.

Postal services and telecommunications

• The founding of the International Telegraph Union in 1815 enabled individual to communicate through one international network.

• The ITU coordinates the shared global use of the radio spectrum, promotes international cooperation in assigning satellite orbits, works to improve telecommunication infrastructure in the developing world, and assists in the development and coordination of worldwide technical standards.

Labor issues and the ILO

• The origins of the ILO can also be traced to the 19th century, when growing problems with industrialization.

E. H. Greenwood, U.S. Delegate, and Harold B. Butler, Secretary-General, with secretarial staff of the first International Labour Conference in Washington, D.C., October–November 1919,in front of the Pan American Building

• The core aim of the organization is the protect labor from abuses.

• In 1969, the organization received the Nobel Peace Prize for improving peace among classes, pursuing justice for workers, and providing technical assistance to developing nations

• World peace could only be accomplished by attention to social justice…

Principles• Humanitarian: recognition that “condition of labour exist involving …injustice,

hardship and privation to large number of people”• Economic implication that “the failure of any nation to adopt humane condition

of labour is an obstacle in the way of other nations whose desire to improve the conditions in their own countries”

• Unlike other United Nations specialized agencies, the International Labour Organization has a tripartite governing structure — representing governments, employers and workers. The rationale behind the tripartite structure is creation of free and open debate among governments and social partners.

• In 1998, the 86th International Labour Conference adopted the Declaration on Fundamental Principles and Rights at Work. This declaration contains four fundamental policies[9]:– The right of workers to associate freely and bargain collectively;– The end of forced and compulsory labour;– The end of child labour; and– The end of unfair discrimination among workers.

Evolving ecconomic governance: origins of the Bretton Wood System

• As the industrial revolution expanded, the need for managing increased trade, capital flows, and price fluctuations in raw materials grew.

• Some initiatives were private, some public. • During the 1920s and early 1930s, industry-

based cartels emerged a one means of economic governance.– These cartels sought to coordinate product outputs

and hence control price

• Neither private cartels nor governments were able to control the effects of the worldwide Great Depression.

• US and British economist realized that international institutions were needed to help countries with balance of payments difficulties, to provide stable exchange rates and economic assistance, and to promote nondiscrimination in and trade.

• Preparing to rebuild the international economic system as World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference. The delegates deliberated during 1–22 July 1944, and signed the Agreement on its final day.

• Setting up a system of rules, institutions, and procedures to regulate the international monetary system, the planners at Bretton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group. These organizations became operational in 1945 after a sufficient number of countries had ratified the agreement.

39

The International Monetary System: The Bretton Woods System:1945-1973

Beyza CINGILLI GUCLU

40

Three Pillars of the Bretton Woods System

1.Exchange rate stability and the IMF (27 December 1945),

2. Recovery and development (International Bank for Reconstruction and Development, now known as the World Bank),

3. Liberalization of trade via the General Agreement on Tariffs and Trade (GATT) in 1947.

41

- A stable and fixed but adjustable exchange rates regime

- Allied countries to fix their exchange rates by tying their currencies to the U.S. dollar (dollar-pegged exchange rate)

- The U.S. dollar to be linked to gold; per ounce at $35

- Currencies to be kept within 1% of the fixed rate

- Golden age of the U.S. dollar

- The system’s stability required price stability in the US

The Bretton Woods System

42

- Through capital controls, the countries would pursue the full employment and price stability (low inflation) and the external balance (keeping exchange rates stable) simultaneously.

Expected Benefit from the New System

IMF