Women Shaping Global Economic Governance Edited by Arancha González and Marion Jansen
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July 2019 Women Shaping Global Economic Governance Edited by Arancha González and Marion Jansen CEPR Press Women Shaping Global Economic Governance CEPR Press Centre for Economic Policy Research 33 Great Sutton Street London, EC1V 0DX UK Tel: +44 (0)20 7183 8801 Email: [email protected] Web: www.cepr.org ISBN: 978-1-912179-22-0 (print); 978-1-912179-23-7 (eBook) Copyright © International Trade Centre, 2019. www.intracen.org The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. Digital image on back cover: © Shutterstock, art design by Kristina Golubic. Photograph of Angela Merkel on front cover: © Bundesregierung/Steffen Kugler. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authori- ties, or concerning the delimitation of its frontiers or boundaries. The views expressed in this publication are those exclusively of its authors and do not represent those of the International Trade Centre. Women Shaping Global Economic Governance Edited by Arancha González and Marion Jansen A VoxEU.org eBook Centre for Economic Policy Research (CEPR) The Centre for Economic Policy Research (CEPR) is a network of over 1,200 research economists based mostly in European universities. The Centre’s goal is twofold: to promote world-class research, and to get the policy-relevant results into the hands of key decision-makers. CEPR’s guiding principle is ‘Research excellence with policy relevance’. A registered charity since it was founded in 1983, CEPR is independent of all public and private interest groups. It takes no institutional stand on economic policy matters and its core funding comes from its Institutional Members and sales of publications. Because it draws on such a large network of researchers, its output reflects a broad spectrum of individual viewpoints as well as perspectives drawn from civil society. CEPR research may include views on policy, but the Trustees of the Centre do not give prior review to its publications. The opinions expressed in this report are those of the authors and not those of CEPR. European University Institute (EUI) The European University Institute (EUI), located in Florence, Italy, was founded in 1972 by the European Community Member States to provide advanced training to Ph.D. and LL.M. researchers and to promote research in the social sciences at the highest levels. An international organisation with a European focus, doctoral and post-doctoral scholars from all over the world pursue academic research in its four departments of Law, History, Economics and Social and Political Science and at the Max Weber Programme for Post-doctoral Studies. The Institute is also home to the Robert Schuman Centre for Advanced Studies (RSCAS), which is devoted to high-quality research on the dynamics of European integration, broadly defined, and Europe’s global role. The RSCAS hosts dozens of international research projects focusing mainly on the areas of Integration, Governance and Democracy; Regulating Markets and Governing Money; and 21st Century World Politics and Europe. The EUI is also home to the Historical Archives of the European Union, the official repository for the EU institutions. International Trade Centre (ITC) The International Trade Centre (ITC) is the only development agency that is fully dedicated to supporting the internationalization of small and medium-sized enterprises (SMEs). This means that the agency enables SMEs in developing and transition economies to become more competitive and connect to international markets for trade and invest- ment, thus raising incomes and creating job opportunities, especially for women, young people, and poor communities. Established in 1964, the International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. Contents Acknowledgements vii Foreword by Angela Merkel viii Preface by Brigid Laffan and Beatrice Weder di Mauro ix Introduction by Arancha González and Marion Jansen 1 Part I: Governing finance Introduction Governing finance: Redefining a broader sense of purpose 9 Christine Lagarde The challenges of macroeconomic stability in developing countries: The case of Botswana 13 Linah K Mohohlo The role of international tax cooperation in achieving the Sustainable Development Goals 17 Monica Bhatia Central bank strategies to boost investor confidence in an era of volatility, rapid economic transformation, and uncertainty 27 Elvira Nabiullina National Development Banks for inclusive and sustainable development 33 Stephany Griffith-Jones Part II: Governing trade and investment Introduction Bringing trade policy up to date for a changing world 41 Cecilia Malmström Protecting the WTO’s crown jewel: Appellate Body reform proposals 45 Zhang Yuejiao Global guiding principles for investment governance: The bumpy road to multilateral investment rules 51 Ana Novik Trade policy for prosperity: The value of open markets 61 Vera Songwe Confrontation, disruptive technologies, and geostrategic rivalry: The quest for renewed global trade governance 73 Anabel González Part III: Governing the global labour market Introduction What future for the WTO? 85 Sharan Burrow Working conditions in global supply chains 89 Drusilla Brown Instances of international coherence in the international social and economic order: The integration of trade and labour considerations 101 Gabrielle Marceau Migration, trade, and investment 111 Leila Baghdadi The future of education in the developing world 119 Cláudia Costin The integration of immigrants in domestic labour markets 127 Sara Pantuliano Part IV: New challenges to global economic governance Introduction Africa in the Fourth Industrial Revolution 141 Ngozi Okonjo-Iweala Prosperity requires a planet: Climate change matters 147 Teresa Ribera Is Womenomics working? 151 Kathy Matsui Economics of populism 161 Erica Owen Governance in the era of data-driven decision-making algorithms 171 Nuria Oliver How do we ensure good reporting in the age of noise? 181 Soumaya Keynes Vulnerability and opportunity: What small states can teach the world 189 Mia Amor Mottley About the authors 195 vi Acknowledgements This volume would not exist without the continuing support of Nneka Henry and Evelyn Seltier, who have been efficient correspondents with us and this publication’s numerous contributors. The volume also benefited from the assistance of Ines Ayari and Pippa McDougall. We thank Elena Boutrimova, Vittorio Cammarota, Deborah Greenfield, Bernard Hoekman, Alexander Riveros, Matthew Wilson and Quan Zhao for their support. Anil Shamdasani edited the contributions and provided layout and typesetting. Kristina Golubic designed the cover concept and Serge Adeagbo provided digital printing services. vii Foreword Angela Merkel Federal Chancellor of the Federal Republic of Germany Globalisation influences our lives, our work and economy, our food and clothing, our communication and, yes, even the way we think. It is precisely for this reason that many people feel overwhelmed by it. I hope that, instead of focusing on the risks of globalisation, we can perceive and take advantage of the opportunities it presents. Approaches based on a spirit of partnership, such as the 2030 Agenda for Sustainable Development, show us the way. It is up to us to strengthen global forums in order to develop multilateral guiding principles and to act together accordingly. The International Trade Centre looks at four key areas of globalisation in this publication: financing, trade and investment, the labour market and the global economy. The International Trade Centre – very much in line with its SheTrades initiative – gives exclusively female experts from around the world the opportunity to weigh in on these issues. Their contributions to the discussion and ideas are not only an expression of their expertise, but also reflect women’s aspiration to shape globalisation as equal partners. This publication therefore also makes an important contribution to realising gender equality as a fundamental prerequisite for shaping globalisation fairly. With this in mind, permit me to wish you a stimulating read and many new insights – as well as a great number of readers for this book! Angela Merkel May 2019 viii Preface Brigid Laffan and Beatrice Weder di Mauro Director, Robert Schuman Centre for Advanced Studies, EUI; President, CEPR The multilateral institutions established following World War II provided a framework that supported the reconstruction and development of countries devastated by the war, and in recent decades has helped many developing countries to pursue policies that reduced the incidence of poverty and per capita incomes. Increases in trade and foreign direct investment flows, official development assistance, regional integration efforts by nations in all parts of the globe, and technological changes that reduced transport costs for goods, services, and people have been drivers of growth. Global economic governance has centred around a network of multilateral institutions, including the United Nations and its many specialised bodies and sectoral organisations, the Bretton Woods institutions, and the European Union. Some of these entities are celebrating their 100th anniversary (for example, the International Labour Office, or ILO). Others are of more recent vintage, such as the World Trade