Tuesday, October 06, 2009

Global government for a global crisis

One of the topics I frequently discuss regarding the current crisis, is that we do have a global financial system, but we do not have a global government model. The implications are profound. The impact of the capital markets in everyday life are huge, and indeed they are not going to diminish.
However, there is an obvious need to define global coordinated actions. Yes, we do have G20, IMF and the like, which are adapting their governance models to a more balanced world, with bigger roles to superpowers like Brasil and China. But, I always struggle with one issue:
Q:what's in the agenda of a politician? 
A.The next election.
Q: is this the best motivation to solve global and enduring issues like the global financial crisis?
A: obviously not.
Q: then, what are they going to do to solve the issues?
A: focus on what can give them an easy headline for domestic political consumption, i.e., limit bonuses of bankers, impose regulation to imports,...
You see what I mean.
I would like to see a bunch of technocrats designing a global solution and the politicians adhering to it, rather than the other way around. We could transfer legitimate power to a group of 10 that could design a solution, without immediate election results in mindset. Is that possible? Yes. Are we ready to do it. I guess not.