What types of global governance are there


Germany benefits from open markets like hardly any other country. Every fourth job in our country is dependent on exports, in industry it is even more than every second. The design of the framework conditions for globalization is therefore a core task of the BDI.

Today, states can neither use the great opportunities of the global economy on their own, nor master the great challenges. National solo efforts are doomed to failure. Many topics require intensive global cooperation. The implementation of the Paris Climate Agreement, the guarantee of fair trade conditions and the fight against corruption and crime are just three challenges of global proportions that illustrate the relevance of international institutions.

Globalization needs cooperative action

In the absence of a “world government” that controls, directs and coordinates cooperation between the 193 states on our planet, another form of regulation is required. When one speaks of global governance, one means the international framework that - based on institutions, laws, principles and rules - ensures international order. Such a network, based on formal and informal structures and institutions, is necessary in order to jointly cope with the problems and conflicts that arise between states as well as global challenges. In addition, there are a large number of issues that cannot be resolved in a national context because their causes or effects are global in nature or at least encompass several countries.

Forms of global governance

Global governance takes various forms, for example through international treaties (for example the trade law of the World Trade Organization, WTO). But informal votes (e.g. G7, G20) and a loose exchange of ideas (e.g. World Economic Forum) can contribute to effective global governance. Outstanding global governance formats are the G7 and G20. Their subject portfolio ranges from the coordination of financial and economic policy to climate protection and social and labor market issues.

But it is by no means just states and their governments that are involved in global governance. In recent years, social actors have built up a large number of their own formats with which they flank the official political formats. For example, in 2007 the BDI initiated the “G8 Business Summit” (B8, since the suspension of Russia in 2014 B7) and has since accompanied the G7 process together with the business associations from the other G7 countries. In addition to business forums such as B7, B20 and BIAC, there are also a number of other civil society formats, such as Civil20. The participation of civil society is mostly limited to consultations and the possibility of entering positions and, more rarely, extends to rights of codecision.

The BDI in global governance

As a global player, BDI is active in many ways on the international stage. As part of Business 20, he represents the economy of the G20 countries to the G20. The BDI is also working with the business associations of the other G7 countries to develop consolidated economic positions as part of Business 7. At the WTO he is involved in shaping multilateral trade policy. He is also actively involved in the Business and Industry Advisory Committee to the OECD (BIAC), the association of leading OECD associations that advises the OECD in its coordination work. In addition, the BDI is represented in the Global Business Coalition, which supports the business dialogues of the G7 and G20, B7 and B20 respectively.

As part of the work of UNCTAD, the BDI is involved in the development of modern investment protection under international law. The BDI is also involved in international climate policy, for example in the context of the world climate conferences. Together with politicians and in close coordination with partners in Europe and in the G20, the BDI is working on the regulatory shaping of globalization. The aim here is to enable sustainable prosperity for people in Germany and around the world.

Global problems and challenges can only be solved in an international context. The BDI, as the voice of German industry, is involved in numerous of these bodies and formats and thus supports the heads of state and government in making practical and future-oriented decisions.