Global Governance in the 21St Century

Edited by Björn Hettne and Bertil Odén Global Governance in the 21st Century: Alternative Perspectives on World Order Björn Hettne Professor Department of Peace and Development Research Göteborg University P.O. Box 700 SE-405 30 Gothenburg, Sweden E-mail: [email protected] Bertil Odén Counsellor Embassy of Sweden P.O. Box 9274 Dar es Salaam, Tanzania E-mail: [email protected] Distributed by: Almkvist & Wiksell International P.O. Box 7634 SE-103 94 Stockholm, Sweden Fax: +46 8 24 25 43 E-mail: [email protected] Edita Norstedts Tryckeri AB 2002 i Table of Contents List of Acronyms and Abbreviations iii Introduction 1 Björn Hettne and Bertil Odén 1. In Search of World Order 6 Björn Hettne 2. The Liberal Globalist Case 26 Indra de Soysa and Nils Petter Gleditsch 3. Reprising Durable Disorder: Network War and the Securitisation of Aid 74 Mark Duffield 4. Reforming the World Order: Multi- and Plurilateral Approaches 106 Raimo Väyrynen 5. The Post-Westphalia Enigma 147 Richard Falk 6. Implications for International Governance and Development Cooperation 184 Bertil Odén Notes on Editors and Contributors 203 iii List of Acronyms and Abbreviations AIDS acquired immune deficiency syndrome APEC Asia Pacific Economic Cooperation ASEAN Association of South East Asian Nations CAP Common Agriculture Policy (of the European Union) CEO Chief Executive Officer CO2 carbon dioxide ECOSOC Economic and Social Council (of the United Nations) ECHO European Commission Humanitarian Office EP European Parliament EMU European Monetary Union EU European Union FDI foreign direct investment G7 Group of seven G8 Group of eight GATT General Agreement on Tariffs and Trade GDP gross domestic product GNP gross national product GPA Global Peoples Assembly HIPC Heavily Indebted Poor Countries HIV human immunodeficiency virus ICC International Criminal Court ICEM International Federation of Chemical, Energy and Mine Workers’ Union IGOs inter-governmental organisations IFIs international financial institutions IMF International Monetary Fund IT Information Technology LDCs least developed countries MAI Multilateral Agreement on Investment MERCOSUR Mercade Commún del Sur (Common Market of the South) MDGs Millenium Development Goals MFN most favoured nation MNCs multinational corporations NAFTA North American Free Trade Agreement NICs newly industrialised countries NPV net present value NGO non-governmental organisation ODA official development assistance OECD Organisation for Economic Co-operation and Development PCM Project Cycle Management PPP purchasing power parity iv PRGF Poverty Reduction and Growth Facility PRSP Poverty Reduction Strategy Paper SFA Strategic Framework for Afghanistan SSA Sub-Saharan Africa TNC transnational corporation UN United Nations UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UNHCR United Nations High Commission for Refugees UNICEF United Nations Children’s Fund UNIDO United Nations Industrial Development Organization UNITA National Union for the Total Independence of Angola UNRISD United Nations Research Institute for Social Development WOMP World Order Models Project WTO World Trade Organisation 1 Introduction This is a small book about big issues. It addresses the question of possible frameworks for global governance with particular regard to development and security, which are two converging areas today. The book deals with alternative forms of global governance (or world orders). It discusses ideas ranging from optimistic globalist liberal visions to more pessimistic views to the effect that disorder has become a more or less permanent condition, at least in the so-called South. Development assistance and conflict management are two international activities that necessarily take place within an international politico-juridical framework. Consequently, they are also largely shaped by this same framework. This is a neglected aspect in studies of these two activities. Furthermore this framework, often referred to as “the Westphalia order”, is currently in process of transformation. We are not quite sure into what, and naturally this dilemma does not simplify the relationships involved. This increases the need for a study of the possible governance implications of emerging conflict patterns that are challenging the international system. Our aim is to contribute to the ongoing discussion regarding the interrelationship between conflict and development at global, regional, national and local levels. By systematising emerging tendencies and their interplay between various levels of the global political economy, taking the possible future roles of the nation-state as the point of departure, an inventory of various options or “world order scenarios” has been attempted In the first chapter, by Björn Hettne, the future world order alternatives are spelt out in general terms with reference to earlier discourses on the fundamentals of international order and possible futures. We think it is meaningful to relate the art of political forecasting today to the methodology explored through earlier efforts in this difficult genre, and hope that this discussion will provide a relevant framework for the various contributions to this book. The first strand identified is based on a strong belief in the virtues of globalism, where most decisions regarding resource allocation can be successfully left to the market and the role of the nation-state is consequently reduced. This vision is designated the liberal globalist case.The second strand focuses on the vicious side of the globalisation process, also with reduced influence for the nation-state. This scenario is called durable disorder. The third strand describes how the international community, based on existing nation-states or a reformed nation-states system, should meet the globalising factors. There are two possibilities: one is called assertive multilateralism, relating to a UN focused order: the other is plurilateralism, based on a great power concert, for instance G8 or NATO. The fourth and final strand is based on increased influence on international governance for civil society within a framework of a global “normative architecture”. As part 2 of this strand a move from national to regional governance can be envisaged. This scenario is called global cosmopolitanism combined with new regionalism. In the next four chapters, which make up the bulk of the book, some of the trends identified are further explored by internationally well known authors, chosen for their expertise on the various dimensions of the alternative world orders discussed. They have not been asked to produce a rigid elaboration of exactly those forms of governance presented in chapter one, which would have been a rather artificial exercise, but rather to further pursue their own lines of reasoning from their previous work. In chapter two, Indra de Soysa and Nils Petter Gleditsch, while not adhering to the hard globalist view that markets really can operate in a political vacuum, explore a link between globalisation and the growth of beneficent political institutions. Thus, they take their point of departure in the controversial phenomenon of globalisation that has such a surprising capacity for arousing diverging opinions. They stress the fact that the current debate is not very dissimilar to the old debate on modernisation vs. dependency, where the latter position blamed trade and foreign investment for making the poor countries poorer, whereas the former position considered underdevelopment was the result of bad governance and dirigiste practices. The authors build a case for the argument that increases in trade and investment will enhance the prospects for democracy and peace by strengthening interdependence among nations in a liberal world order. In chapter three, Mark Duffield critically discusses the more pessimistic scenario, called “durable disorder” in chapter one, but does not define this as a permanent retrograde crisis. The new conflicts are seen less as temporary crises, more as distinct economic and political projects. To Duffield, the paradox of globalisation is that deregulation and liberalisation also create the conditions for autonomy and resistance in the “peripheries”. The new wars are not forms of social regression but signs of actual development. In the emerging new political economy, the warring parties forge autonomous local-global networks as a means of marketing local resources and securing essential supplies. In the mainstream discourse, the new wars are interpreted as resulting from lack of development, which leads to a merger of development and security concerns for the purpose of conflict prevention, conflict resolution, and social reconstruction. The emerging forms of governance build on public-private networks of international assistance, convergence of development and security, and increasing coherence between various ministerial departments dealing with these issues. However, there are marked limits to international authority and governance in the “borderlands” in this new situation; hence the durability of disorder. In chapter four, Raimo Väyrynen analyses opportunities to reform the international order either by means of assertive multilateralism or various plurilateral approaches, by which he means a multitude of actors other than states. The Asian financial crisis of 1997 was a wake-up call, underlining the 3 need to strengthen global governance, if globalisation was to have a future. At present, a new consensus

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