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Global Public Policy and Global Public Policy and International OrganizationInternational Organization

““Globalization has ended the nation-state’s Globalization has ended the nation-state’s monopoly over internal sovereignty, which monopoly over internal sovereignty, which was formerly guaranteed by territory.”was formerly guaranteed by territory.”

Wolfgang H. ReinickeWolfgang H. Reinicke

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Three Interconnected ChallengesThree Interconnected Challenges

GlobalizationGlobalization

PovertyPoverty

EnvironmentEnvironment

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The Globalization ChallengeThe Globalization Challenge

Fragmentation of Fragmentation of international politics vs. international politics vs. Integration of the global Integration of the global economyeconomy

Knowledge replaces mass Knowledge replaces mass production as main source production as main source of national wealthof national wealth

Massive deficit in global Massive deficit in global public goodspublic goods

Global Global institutional institutional adjustmentadjustment

New New Development Development ParadigmParadigm

Re-orientation Re-orientation of Development of Development SystemSystem

ResponseResponse

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The Poverty ChallengeThe Poverty Challenge

Out of 4.4 billion people in developing Out of 4.4 billion people in developing countries 1.3 billion subsist on less than countries 1.3 billion subsist on less than $1/day$1/day

3 billion on less than $23 billion on less than $2 15 million people die of poverty related causes 15 million people die of poverty related causes

annuallyannually 1.2 billion lack access to safe water1.2 billion lack access to safe water 3 billion lack access to basic sanitation3 billion lack access to basic sanitation 2 billion lack access to power2 billion lack access to power

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The Environmental ChallengeThe Environmental Challenge

Per capita waste generated has trebled over past Per capita waste generated has trebled over past twenty years in developed countriestwenty years in developed countries

Carbon emissions have quadrupled over past fifty Carbon emissions have quadrupled over past fifty yearsyears

A sixth of land area has been degradedA sixth of land area has been degraded Fish stocks down by one quarterFish stocks down by one quarter 350m people live in areas prone to environmental 350m people live in areas prone to environmental

hazardshazards Deforestation @ 1 acre/secondDeforestation @ 1 acre/second Wild species extinct at a rate 50 times higher than Wild species extinct at a rate 50 times higher than

naturallynaturally

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The New Development ParadigmThe New Development Paradigm

A new concept of capitalA new concept of capital

NaturalNatural

InstitutionalInstitutional

FinancialFinancial SocialSocial

HumanHumanPhysicalPhysical

Development as social transformation and institutional adjustmentDevelopment as social transformation and institutional adjustment

Perceptions

Beliefs

Institutions

Organizations

Policies

Values

Rules

Players

ChangingReality Exogenous

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A Comprehensive Development A Comprehensive Development FrameworkFramework

Clean GovernmentClean GovernmentSound JudiciarySound JudiciaryMacroeconomicMacroeconomic ManagementManagement

Financial SectorFinancial SectorPowerPowerWaterWater

HealthHealthEducationEducationTransportTransport

Social Dev. Social Dev. CultureCultureGenderGenderPrivate Sector DevelopmentPrivate Sector Development

National ResourceNational Resource ManagementManagementRural DevelopmentRural DevelopmentUrban DevelopmentUrban Development

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The Emerging Development SystemThe Emerging Development System

OrientationOrientation

FocusFocus

InstrumentsInstruments

Unit of Unit of AccountAccount

StructureStructure

InstrumentsInstruments

IdeologyIdeology

PastPast

MoneyMoney

ProjectProject

ProjectProject

FragmentedFragmented

ProjectProject

Crisis Crisis ManagementManagement

CurrentCurrent

PolicyPolicy

AdjustmentAdjustment

CountryCountry

CoordinationCoordination

ProgramProgram

ResultsResults

FutureFuture

InstitutionsInstitutions

ProgrammaticProgrammatic

GlobalGlobal

IntegratedIntegrated

PartnershipsPartnerships

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Equitable and sustainable development implies a Equitable and sustainable development implies a mix of hierarchy, competition and cooperationmix of hierarchy, competition and cooperation

A. Government goodsA. Government goods

B. Toll goodsB. Toll goods

C. Public goodsC. Public goods

D. Private goodsD. Private goods

E. Civil goodsE. Civil goods

F. Common pool goodsF. Common pool goods

AA

DD FF

BB CC

EE

CompetitionCompetition(market) (exit)(market) (exit)

CooperationCooperation(civil society) (voice)(civil society) (voice)

HierarchyHierarchy(State)(State)

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The problem of objective setting and The problem of objective setting and coordination is solved differently depending coordination is solved differently depending on the type of goodson the type of goods

ExcludableExcludable SubtractableSubtractable AccessAccessOversight andOversight andCoordinationCoordination

Yes Yes Market Market

No Yes Voice Voice

Yes No Market Hierarchy

No No Voice Hierarchy

Private goodsPrivate goods

Common Common pool goodspool goods

Toll goodsToll goods

Public goodsPublic goods

——Goods Characteristics—Goods Characteristics—

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Globalization has created Globalization has created three major gapsthree major gaps

Values GapValues Gap (“Great disruption”)(“Great disruption”)

Institutional GapInstitutional Gap (Rules of the game)(Rules of the game)

Organizational GapOrganizational Gap (Governance)(Governance)

They need to be filled together They need to be filled together through global partnershipthrough global partnership

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Key global challenges require tailor Key global challenges require tailor made partnershipsmade partnerships

GovernanceGovernance- Corruption- Corruption- Trade- Trade- Economic Management- Economic Management- Security- Security

InfrastructureInfrastructure- Telecomm- Telecomm- Power- Power- Water- Water- Transport- Transport

Human Human DevelopmentDevelopment

- Health- Health- Education- Education- Nutrition- Nutrition- Social - Social

ProtectionProtection

Social Dev. Social Dev. - Culture- Culture- Gender- Gender- Civil Society- Civil Society

Private SectorPrivate Sector DevelopmentDevelopment- Banking- Banking- Foreign Investment- Foreign Investment- Corporate Citizenship- Corporate Citizenship

EnvironmentEnvironment- Biodiversity- Biodiversity- Desertification- Desertification- International Waters- International Waters- Deforestation- Deforestation- Global Warming/Ozone Layer- Global Warming/Ozone Layer

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What is partnership?What is partnership?

A collaborative relationship:A collaborative relationship: mutually agreed objectivesmutually agreed objectives shared responsibility for outcomesshared responsibility for outcomes distinct accountabilitiesdistinct accountabilities reciprocal obligationsreciprocal obligations

In business, partners:In business, partners: shoulder unlimited liability for organization’s shoulder unlimited liability for organization’s

debtdebt assume joint management responsibilityassume joint management responsibility share in aggregate profitsshare in aggregate profits

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In public sector and voluntary sector, In public sector and voluntary sector, partnerships evolve gradually partnerships evolve gradually because:because:

Values need to be alignedValues need to be aligned

Partners must demonstrate Partners must demonstrate commitmentcommitment

Capacities must be builtCapacities must be built

Trust must be nurturedTrust must be nurtured

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Partnerships resolve collective Partnerships resolve collective action dilemmasaction dilemmas

Partnerships minimize free ridingPartnerships minimize free riding Partnerships facilitate consensus buildingPartnerships facilitate consensus building Partnerships are adapted to public goods Partnerships are adapted to public goods

productionproduction knowledgeknowledge policy (rules of the game)policy (rules of the game) global consensusglobal consensus infrastructureinfrastructure

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Partnerships are critical to Partnerships are critical to global stabilityglobal stability

Economic growth and private sector Economic growth and private sector development depend on public good development depend on public good (enabling environment, knowledge, etc.)(enabling environment, knowledge, etc.)

Social development depends on social Social development depends on social capital creation (partnerships)capital creation (partnerships)

Environmental protection demands Environmental protection demands cooperation between private, public and cooperation between private, public and voluntary sectorsvoluntary sectors

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Standards for partnershipsStandards for partnerships

Partnership justified only if benefit exceed costs Partnership justified only if benefit exceed costs and net benefits are fairly allocated among and net benefits are fairly allocated among partnerspartners

Relevance =Relevance =

Efficacy =Efficacy =

Efficiency =Efficiency =

- shared values- shared values- ownership of goals- ownership of goals- responsive to “felt needs”- responsive to “felt needs”

- realistic goals- realistic goals- judicious membership requirements- judicious membership requirements- flexible operating protocols- flexible operating protocols

- economic use of resources- economic use of resources- full accounting of benefits- full accounting of benefits (including externalities) (including externalities)- benchmarking- benchmarking

Participatory evaluation, based on resultsParticipatory evaluation, based on results

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Relevance demands participationRelevance demands participation Efficacy demands coordinationEfficacy demands coordination Efficiency demands specializationEfficiency demands specialization Sustainability demands loyaltySustainability demands loyalty

Mutually agreedMutually agreedobjectivesobjectives

RelevanceRelevance ParticipationParticipation

Shared Shared responsibility for responsibility for outcomesoutcomes

EfficacyEfficacy CoordinationCoordination

Distinct Distinct accountabilitiesaccountabilities

EfficiencyEfficiency SpecializationSpecialization

Reciprocal Reciprocal obligationsobligations

SustainabilitySustainability LoyaltyLoyalty

Determinants of successful partnershipDeterminants of successful partnership

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Determinants of successful partnershipDeterminants of successful partnership

Joint elaboration of partnership missionJoint elaboration of partnership mission Full consensus on goalsFull consensus on goals Intellectual conviction demonstrated by Intellectual conviction demonstrated by

upfront actionsupfront actions Broad-based participation in support of Broad-based participation in support of

partnership goals (outreach)partnership goals (outreach) Capacity building directed to weaker Capacity building directed to weaker

partnerspartners

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This means that there will be This means that there will be competition among partnerships and competition among partnerships and not all partnerships will be not all partnerships will be sustainable.sustainable.

It also means that a new global It also means that a new global governance machinery will governance machinery will eventually emerge.eventually emerge.

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The New Global Governance System The New Global Governance System will be based on:will be based on:

SubsidiaritySubsidiarity SpecializationSpecialization PluralismPluralism TransparencyTransparency SelectivitySelectivity Public legitimacyPublic legitimacy