2. the Theoretical Foundations of Global Governance - Liberalism

2. THE THEORETICAL FOUNDATIONS OF

GLOBAL GOVERNANCE

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Part I

Liberalism

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1. The Concept of Global governance

Theories

Theories describe, explain and predict various aspects of international relations. Each is based on a set of key ideas about:

1. The nature and role of Individuals,2. Conceptions of the state,3. Sovereignty,4. Interactions among states and other

actors, and 5. Conceptions about the international

system..


Liberalism

1. Liberal theory holds that human nature is basically good,

2. People can improve moral and material conditions of their existence,

3. Injustice, aggression, and war are products of inadequate or corrupt social institutions and of misunderstanding among leaders,

4. These can be eliminated through collective or multilateral action and institutional reform.

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Philosophical Roots of Liberalism

1. Liberalism has its roots in the “Enlightenment” which epitomized ancient Greek ideas that individuals are rational human beings (born on fitrat e saleem) and have the capacity to improve their condition by creating a just society.

2. Quran says about good-natured people: If we give them power on earth, they will reform it. Quran quotes the example of Zulqarnain as a good-natured person.

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Sheer and senseless violence!

Country Warheads Country Warheads

Russia 12,000 United States 9,400

Britain 225 France 300

China 240 Israel 60-80

India 60-80 Pakistan 70-90

Israel 60-80

North Korea < 10

Total 22,400


3. Immanuel Kant (1724-1804) reflected upon the relationship between democracy and peace. He mentioned the possibility of “perpetual peace” among democratic states. He argued that in a pacific union, democratic states would work together to avoid war.

4. 19th century liberalism (Adam Smith, Jerry Bentham) added, to democratic values, faith in modernization through scientific and industrial revolution. Bentham believed that free trade would raise the cost of war and promote fair competition (economic liberalism). Free markets must be allowed to develop and mature.


5. Woodrow Wilson represents 20th Century liberalism. He envisioned that creating a system of collective security (League of Nations), promoting self-determination of peoples, and eliminating power politics could prevent war. It did not!

6. However, the experiment did show that liberals place importance on international institutions. Second time (UN) did better. Today, a large number of institutions (WTO, WHO, WFP, UNESCO etc) work on these lines.

7. International Courts and arbitration councils promote the ideals of cooperation and peace. Liberalism and idealism came under intense criticism for failure in not being able to prevent WWII and the holocaust, and the Cold War.


How Liberalism Works / Fails to Work?

1. For liberals, individuals are the primary (or unitary) international actors (Monroe Doctrine, Wilson’s ideals, Nixon’s pull-out from Vietnam, Reagan’s SDI, Osama’s attack on Twin Towers, Obama’s withdrawal from Iraq and Afghanistan, etc.).

2. But it is the state that is the most important collective actor. State observes moral and ethical principles, holds free and fair elections, manages its power relations, bargains with domestic and international groups. All these dealings and the ever-changing international conditions shape a nation’s interests and policies.


3. Liberals, however place emphasis on non-state actors and transnational groups, not on state. State should follow a policy of laissez faire.

4. Cooperation will not only be possible, it will grow as various actors learn from their multiple interactions rather than from a structure of relationships based on the distribution of power among states and a fixed concept of power (balance of power, treaties, number of battleships). Liberals (Hedley Bull-1977) believe that World system is a “society” (comity of nations – one big happy family) where actors adhere to common norms, consent to common rules and institutions, and recognize common interests.


5. Liberals are generally supportive of both international organizations and international law even though they admit that international law is somewhat different from domestic law. Liberals see international law as one of the major instruments for maintain international order (international Criminal Court indicted President Bashir of Sudan). Law regulates security of nations (liberation of Kuwait), stability of governments (Sudan, Libya), Territory (UNMOG along LOC in Kashmir), use of airspace (Open Skies), navigation at sea (right of innocent passage), anti-terrorism protocols, anti-money laundering laws that are yet to be made. They are a primary means for mitigating the dangers of war.


Neoliberalism or Neoliberal Institutionalism

1. In era following WW II, it was realism, and not liberalism that prevailed as an IR theory. The tide turned in the 1970s as a result of Vietnam War when it was felt that pursuing realism had only produced pessimism among world’s human population and anarchy in the international system.

2. It was felt that complex interdependence of nations upon each other produces certain sensitivities and vulnerabilities the cure for which could be found in resorting to greater use of institutions.


3. Neoliberals believed that states could work together with the assistance of international institutions to find solutions to anarchy produced by rising oil prices (OPEC), failure of Bretton Woods System (basket of six currencies, Maastricht), increasing third world debt (IMF), and the decline of US economic power (GATT).

4. The possibility of joint gains provides incentives to cooperate (Prisoners’ Dilemma).

5. States that have continuous interaction with each other choose to cooperate and to create international institutions (G8, G20).


6. Continuous interactions:1. Moderate state behavior2. Provide a guaranteed framework for

interactions3. Provide a context for bargaining4. Provide a mechanism for reducing

cheating by monitoring and punishing defectors (IAEC), and

5. Facilitate transparency of the actions of all.


7. International institutions provide focal points for coordination, and serve to make state commitments more credible by specifying what is expected, thereby encouraging states to establish reputations for compliance.

8. International institutions enhance coordination by providing information that aids decision making and reducing transaction costs for achieving agreements among large number of states.


Criticism of International Institutions

1. Cooperation can aid the few at the expense of the many (GATT/WTO), accentuate or mitigate injustice.

2. US offered the joint gains to Europe and Japan but the particular character of the order US created was hegemonic (John Gerard Ruggie, 1982: Embedded Liberalism)

http://www.wto.org/english/forums_e/public_forum_e/ruggie_embedded_liberalism.pdf





Functionalism

1. Functionalism is rooted in the belief that governance arrangements arise out of basic, or functional, needs of states. International economic and social cooperation is a political pre-requisite for political cooperation and eliminating war, ignorance, poverty, and disease.

2. The theory explains the development of early IGOs (International telegraph union, Universal Postal Union, European Coal and Steel Community, etc.) as well as the specialized agencies of the UN (WHO, UNICEF, FAO, ILO, etc.).


3. Functionalism weakens nationalism. The nation state may eventually become

irrelevant.

http://books.google.com.pk/books?id=eJa0QAQiKNsC&pg=PA746&lpg=PA746&dq=European+Coal+Board&source=bl&ots=4FLXE3WI_v&sig=us3efzc66PFyierTz5TxO1BO6mU&hl=en&ei=IWVvTrHdFemO4gTIip2iCQ&sa=X&oi=book_result&ct=result&resnum=6&ved=0CDoQ6AEwBQ#v=onepage&q=European%20Coal%20Board&f=false

http://books.google.com.pk/books?id=eJa0QAQiKNsC&pg=PA746&lpg=PA746&dq=European+Coal+Board&source=bl&ots=4FLXE3WI_v&sig=us3efzc66PFyierTz5TxO1BO6mU&hl=en&ei=IWVvTrHdFemO4gTIip2iCQ&sa=X&oi=book_result&ct=result&resnum=6&ved=0CDoQ6AEwBQ









International Regimes

1. Beginning in the 1970s, informal norms and rules of behavior starting getting codified and institutionalized. Regimes provide decision-making procedures. Hegemonic nations such as US establish regimes as part of their efforts to strengthen their power relations (Bretton Woods).

2. Common interests enhance transparency (IAEC’s watchdog) and reducing uncertainty.


Landmines

http://en.wikipedia.org/wiki/International_Campaign_to_Ban_Landmines


Collective or Public Goods Theory

1. If a group of herders shares a common grazing ground, each herder wants to increase the size of his herd. But, if too many animals graze a common land, the quality of the pasture deteriorates and output to all decreases. The collectivity suffers, individuals suffer.

2. The common grazing area is a collective good available to all the members of the group, regardless of individual contribution.


3. Prophet Muhammad (pbuh) said: Three things a man must share with his neighbor – fire, water and food.

4. Collective or public goods may be tangible or intangible. They include natural commons such as high seas ozone layer, universal norms, peace, health, financial well-being etc. The use of these involves activities that are interdependent. One nation’s indiscretion makes all suffer.

5. International Organizations with policing powers can play a positive role in making a sensible utilization of the common goods.


Share the fruits of the Earth!

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ASSIGNMENT

What laws exist in Pakistan to prevent money laundering? How can South Asian countries opt for a regional approach to

the problem?

Submission: Thursday 22 September, 2011 at 1600 hrs

Marks: 2


STUDENTS’ SEMINAR

Write a three-pager on any one of the UN agencies / bodies / organizations. How can Pakistan benefit from its programmes?

Seminar date: Thursday 22 October, 2011 at 1600 hrs

Mr. Kamran Tasneem

Miss --------------------

Marks: 10

2. the Theoretical Foundations of Global Governance - Liberalism

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