What Do we

Mean by
‘Governance’
In its purest form, GOVERNANCE
describes the structures and decision-
making processes that allow a state,
organization or group of people to
conduct affairs.
The most obvious among these is the
government running the country, as
well as the administrations and
groups that ensure its safety and
efficiency.
But it’s not just governments that govern:
institutions such as the IMF, World Bank and
United Nations, for instance, have an authority
that is recognized the world over.

These bodies take a multilateral approach to

world affairs, bringing together leaders of
public and private sectors, as well as members
of wider society, to achieve commonly
accepted goals and tackle threats to
international security.
The Business Sector is also growing in
significance due to their contribution to
the regulation of global frameworks. “
When the private sector regulates itself
well (i.e. is efficient and accountable)
businesses are better able to make the
decisions needed to tackle wider global
challenges, such as boosting
employment or promoting sustainable
development.
Why are there so many types of governance?
•
“Governance is a big word that includes human rights,
freedom of speech, economic transactions on a worldwide
basis,” the American internet pioneer Vint Cerf once said.
•
In the context of the World Economic Forum, the word
governance is usually applied to laws and standards that
pertain to the global community, and the ways in which
transnational bodies, governments and corporations
implement them.

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How did global governance come about?
•
As the Second World War drew to a close, 44 allied nations –
including the United States, United Kingdom and France –
gathered to set up the world-leading institutions that have presided
over the economic and political landscape for the past few decades.
•
Chief among these are the World Bank, IMF and the General
Agreement on Tariffs and Trade, whose multilateral style of
governance (in which the world’s most powerful countries engage
and negotiate with other interested nations) has been the defining
authoritative model of our age.

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Why is global governance failing?
•
The power of governments and global institutions to ease
geopolitical tensions and safeguard world security is
weakening.
•
Global regimes are experiencing an erosion of authority in
the face of intensifying threats.

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Thank
You