In order to confront the longer-term challenges posed by increased economic interdependency, the framework of global economic governance must keep pace with the integration of the global economy.  

As the balance of the global economy continues to shift, International Economics at Chatham House is exploring the changing role of the G20 in global economic governance. Although the G20 has played an important role in facilitating international policy cooperation following the recent crisis, it has yet to be seen whether the group can play a more institutionalized role in bridging the gap between global markets and national economies. The International Economics team is examining how the G20 can best serve as a legitimate and effective forum for global economic governance in the 21st century.

Publications

Legitimacy vs. Effectiveness: A Dynamic Approach to Global Governance 
Briefing Paper
Paola Subacchi and Stephen Pickford, October 2011

This paper provides practical recommendations on how to improve the legitimacy of the G20 in the short-term in order to maintain its effectiveness in the long-term.

Preventing Crises and Promoting Economic Growth: A Framework for International Policy Cooperation
Chatham House Report
Paola Subacchi and Paul Jenkins, April 2011

Published in conjunction with Centre for International Governance Innovation, this report assesses the future of the G20 in global economic governance and recommends an ambitious schedule of international economic policy cooperation.

Special issue of Oxford Review of Economic Policy

The International Economics team is undertaking a project to help produce a special issue of the Oxford Review of Economic Policy (OxRep) entitled 'Managing Complexity: Global Economic Interdependencies and International Policy Coordination'. The issue, edited by Paola Subacchi, head of International Economics at Chatham House, and David Vines, Professor of Economics at of Oxford University, focuses on five key areas: 

• Prioritizing short-term and long-term policy objectives for the G20; 
• Drawing lessons from past experiences with international policy cooperation—from Bretton Woods to the modern G20;
• Understanding the incentives for cooperation (or defection) across policy areas;
• Assessing the implications of interdependencies for global economic governance;
• Examining specific mechanisms and processes to facilitate international cooperation.

Authors will seek to bridge traditionally isolated policy areas – such as trade and monetary policies, development and global politics – in order to take into consideration the often competing demands of policy-makers.

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