Abstract
This chapter discusses the need for the global regulation of international markets and the problems with establishing any form of regulation for these. It does so in the context of governance as the central platform for any kind of management and control. It contrasts the regulation of markets for goods and services with the market for international finance to show significant differences. It discusses collaborative approaches and the limited success achieved and also the various bodies which perform some kind of international regulation. A central theme of the chapter is that globalisation makes. Need for international regulation more important but does not offer solutions. It is therefore argued that governance is the key to the successful operation of global activity. In doing so, this chapter serves as an introduction to the theme of the book.
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Notes
- 1.
The movement of people from the Middle East and Africa into Europe has, however, become an issue since 2014 and has arguably contributed to the vote by British people to leave the European Union.
- 2.
- 3.
What is often ignored is that it is only in a perfect competition status that a completely unregulated free market can work, which means never. It is simply a construct in economic theory.
- 4.
Extremism—both political and religious—is partly caused by this turbulence.
- 5.
This assumption is actually made explicit by Milton Friedman and the Chicago School of Economics. It has also been made explicit by the US government during the era of G W Bush although this has become noticeably more silent during the era of Obama as president. We await what will happen during the Bush era of ‘putting America first’.
- 6.
Lloyd used the example of unregulated grazing on common land in his example.
- 7.
Article 17 states that ‘no one shall be arbitrarily deprived of his property’ and regulation would have this effect.
- 8.
https://wearethe99percent.tumblr.com accessed 14/3/2017.
- 9.
The system is based on the concept of perfect competition which is taught in introductory economics (e.g. Lipsey and Chrystal 2015) but rejected thereafter. It is based on the assumptions that there are sufficient buyers and sellers so that none of them is large enough to influence the market. In reality the number of sellers is small and continues to become smaller through mergers and acquisitions until a very few sellers have a great power imbalance in their favour when compared to the individuals who are buyers.
- 10.
General Agreement on Trade and Tariffs.
- 11.
https://www.world-governance.org/spip.php?rubrique6&lang=en accessed 14/3/2107.
- 12.
The European Union was a prime example of this in 2006 with inevitable closer union seeming likely. Subsequent events have placed doubt upon this closer union and there is even a strong degree of questioning of the continuing role of the EU.
- 13.
- 14.
- 15.
One of the causes of the crisis was that these packages were not understood by anyone (The Economist Sept 7 2013) and just accepted—in which case this form of investing is no different to gambling such as Russian Roulette and decries any claim of the efficient market hypothesis (Malkiel 1991).
- 16.
Even the previous US regime (led by Obama) admitted the existence of deficiency in regulation which has been very helpful to the creation of this situation, although the current (Trump) regime appears to think the opposite.
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Crowther, D., Seifi, S. (2020). The Continuing Development of Governance: International Divergences. In: Crowther, D., Seifi, S. (eds) Governance and Sustainability. Approaches to Global Sustainability, Markets, and Governance. Springer, Singapore. https://doi.org/10.1007/978-981-15-6370-6_1
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