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Chirol
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Chirol

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June 9th, 2005

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The Wrong Direction of Reform

In my last post I discussed Germany’s bid for a seat on the United Nations Security Council and posed a few questions. Thanks to everyone for the very insightful comments. As for the first question, the UN should indeed exist in 15 years but the question is rather whether it will even function and command any respect in international politics. The reform of the UNSC is one step to increasing its legitimacy and relevance however some Kaplan-esque pessimistic realism is in order. Though reforms aren’t a magic wand that will instantly transform the UN, they will serve important purposes:

  • New UNSC members will be forced to take on more responsibility around the world. I’m specifically thinking of Germany and Japan who are reluctant due to their pacifist constitutions.
  • It will teach pacifist democracies like Japan and Germany a more realistic view of the world through their involvement, teach them not to reject the use of force in the future and to beef up their militaries.
  • It will help to reinforce and create regional hegemons such as Brazil in South America forcing other countries to head to them with their problems and thus forcing a certain degree of maturity and responsibility onto them. It will also offset China in Asia by adding democratic Japan and India to the UNSC, and mix up Europe a bit more by adding Germany to the current UK and France. Especially good if Germany gets a new government soon though that’s a short term gain.
  • It creates a more active and diverse forum for world debate with increased legitimacy though not necessarily efficiency.

However, though the UN will emerge as a better forum in which to discuss geopolitical problems, the greatest flaw of the UN isn’t its structural irrelevance but rather its desire to enforce a maximum rule-set.

Empires of the past also strove to enforce a maximum of rules and thus the UN has experienced a great deal of similarly grounded resistance and will continue to. Understand that the UN is indeed important, however, only in one of its functions, namely that of being a forum. The UN as a forum for the world to come together and discuss matters of war and peace, discuss international problems and agree on solutions is a monumental achievement the history of mankind, but the UN as a law maker can never ultimately succeed because the UN lacks the power to enforce them and because no country will ever fully give up it’s sovereignty, especially with regard to national security. There’s just no way.

Individual examples of UN resolutions have indeed been successful such as the most recent resolution which provided the face-saving cover for Syria to move out of Lebanon without looking too bad. This is also a rare example because it had almost universal support. However, the vast majority of resolutions don’t and go unheeded. Resolutions like the example serve to strengthen the UN, its reputation and to provide a neutral face for US foreign policy. Yet, the current UN is a resolution factory pumping out pieces of paper faster than we can read them. Perhaps the best way to characterize this is that UN resolutions are suffering from hyperinflation.

The UN is an unparalleled achievment in human history but works best as a forum, not as a law giver. The UN already finds itself in a dangerous state of overstretch and is in danger of making the same mistake that the European Union is currently making.

Comments to this entry

IJ
June 9, 2005
11:49 am
The lack of financial discipline was an important contribution to WW2. Never again was the cry. The UN was created essentially to encourage such discipline.

But the UN still isn't allowed to be a safeguard. The frustration at the UN's special economic agency, the IMF (let alone financial auditors), is evident. Proposals for reform of the UN, such as increasing the size of the Security Council, are unlikely to improve things.

Unfortunately, nations have refused to give up the right to manage their economies - within the global economy - as they see fit.
Dan
June 9, 2005
12:57 pm
The IMF was set up in Breton Woods. It is a seperate agency from the UN.
IJ
June 9, 2005
1:14 pm
It all comes down to treatment Dan. The IMF has been ignored, despite its official status as a UN safeguard in the global economy. As for the treatment of financial auditors, Andersens will be glad of the independent court system in the US.
Dan
June 9, 2005
3:44 pm
I guess I'm unsure of what we are discussing. The IMF is an extremely powerful global bank that has outlived its original purpose. It now acts under mostly American direction as a de facto court of sovereign bankruptcy.
IJ
June 9, 2005
5:27 pm
Back to the topic: 'The Wrong Direction for Reform'. The reform of the UNSC seems the wrong priority, when a key problem is the absence of control over the global economy.

The MD of the UN special agency, the IMF, "spoke":http://www.imf.org/external/np/speeches/2005/060805.htm yesterday about the future role of the organisation in the international monetary system. He doesn't seem to agree that the organisation has outlived its original purpose.
Dan
June 9, 2005
10:20 pm
Back to the topic: "ËœThe Wrong Direction for Reform'. The reform of the UNSC seems the wrong priority, when a key problem is the absence of control over the global economy.

The MD of the UN special agency, the IMF, spoke yesterday about the future role of the organisation in the international monetary system. He doesn't seem to agree that the organisation has outlived its original purpose.


Auch!

The original purpose of the IMF was supporting a system of fixed exchange rates to enable governments to control their economies. The whole point of globalization is that there is no planning of the world economy. "Planning the economy" has been a disaster over and over again.

Heaven save us from controlled globalizations!
Kenneth
June 9, 2005
11:12 pm
The U.N. is an unparalleled farce. Economic integration (ie, free trade), not some bungling international agency, is the key to peace, or at least detente, and instrumental in cementing alliances. In my social twenty class we're studying WW1 and it seems that America came to the rescue after their trade routes with Britain were threatened by German submarines. Mind you, I live in Canada so if my facts are off don't blame me, blame the Canadian Ministry of Education, but realistically the only way to keep nations from each other's throats is through some kind of economic interdependence. Kaplan, incidentally, alluded to the likelihood of a de facto "global government", composed not of nations in an organization but powerful multinationals. If global government does eventually emerge (and it probably won't, at least for a very long time), it will do so in economic form.
Mike
June 10, 2005
2:21 am
The UN is fundamentally flawed because the nations which make it up are opposed to world peace, world order, freer trade, and the rest. If only free nations were allowed as members then the UN might serve some useful purpose, but until then it will be hopelessly crippled.
Kenneth
June 10, 2005
4:35 am
The fundamental flaw is in the concept of the UN. Peace based on purely political rather than economic means is a fragile state since any tipping in military might could result in political breakdown. Many UN bureaucrats are probably aware that a global free trade agreement would make for easy world peace but then large parts of the UN bureacracy would become superfluous. The bureaucrats thus have a vested interest in maintaining the existing state of affairs.
Kenneth
June 10, 2005
4:45 am
In the final analysis it is probably desirable that the US leave the UN. You Americans have enough in the way of domestic trouble (ballooning debt, deficits which Greenspan has labeled "unsustainable", and an economy built on the shifting sands of international finance) and emerging competition (the emergence of a Russia-China-Iran triple axis as well their attempt to effectively consolidate central Asia via the SCO) without trapping yourselves in a network of entanglements with other nations that have little or no importance to the well being of your country. As well, I have heard it said that the US provides much in the way of funding for the UN, funding that could go into paying off your debt. So yeah, time to disengage. On the dim side this could be a PR fiasco, however the US is hardly that popular beyond its borders so that's irrelevant.
IJ
June 10, 2005
8:30 am
More on the possibility that the US will leave the United Nations - the global organisation they helped to create after the first attempt - the League of Nations - failed.

Stability is the purpose of the UN system. The MD of the IMF yesterday offered thoughts on two critical issues threatening the stability international economy - global imbalances and global poverty. "Speech":http://www.imf.org/external/np/speeches/2005/060905.htm

In an earlier link in this forum, the need for national and international stability was the theme from the IMF:
"We live today in a highly globalized and integrated world. . . .In the first half of the 20th century, nationalism and protectionism disrupted this integration, setting off the Great Depression and contributing to World War II. The IMF"”?and the World Bank, its sister institution"”?were established to restore an open system of trade and finance, help countries rebuild from the war and, in the process, hopefully build a new era of world peace and prosperity. Against that background, a key part of the IMF's mandate today is the promotion and maintenance of monetary and financial stability, both in individual countries and at the international level. Stability is the foundation for sustained economic growth, and crisis prevention and resolution is an integral part of our work."

It's a pity that not all countries agree with the need for stability - with the result that the IMF and financial auditors can suffer seriously. This basic difference needs to be resolved, before reform of the UN takes place.
IJ
June 10, 2005
12:28 pm
The US Senate is not convinced the US should leave the UN system. How to improve the IMF part of the UN was discussed at a Senate enquiry this week. They invited the Director of the Institute for International Economics, C Fred Bergsten, to give his "views":http://www.iie.com/publications/papers/bergsten0605.pdf

Mr Bergsten said the IMF at present lacked support to perform the essential duties that were expected of it.

"It is the responsibility of the International Monetary Fund to take the lead in promoting correction of such huge, costly, and potentially destabilizing imbalances in the world economy."

"Without much stronger support from the G-7 countries, however, notably including the United States itself, there is little that the Fund can do to achieve realization of [needed] policy alterations"”?including with respect to the Chinese and other East Asian exchange rates."

Other matters touched on were Argentina - "the largest sovereign default in modern history" - and the advantages of giving debt relief to poor countries, perhaps by selling IMF gold.