Globalization increases openness, but the current system seems incapable of facing new challenges. Do we have to reform our institutions or even create new ones? The United Nations University presents some suggestions, based on the manuscript of Deepak Nayyar (Ed.) "Governing Globalization: Issues and Institutions". According to this major UN research project, the international community should…

1. …reform the UN Security Council, taking account of the greater role being played bu non-Western countries since 1945.

2. …establish independent financing of the United Nations, possibly through some version of the Tobin tax.

3. …deploy a high quality UN international volunteer peace force.

4. …establish a “People’s Assembly” in the United Nations system, modelled on the European Parliament.

5. …create an “Economic Security Council” for global policies.

6. …redefine the role of the International Monetary Fund, focusing on crisis prevention, more representation and transparency.

7. …redefine the role of the World Bank, focusing on development policy and local participation in country programmes.

8. …redefine the role of the World Trade Organization, focusing on representative decision-making.

9. …establish institutional mechanisms for surveillance and coordination of national macroeconomic policies.

10. …increase the supply of emergency financing in times of crisis.

11. …create international sanctions for standstill provisions.

12. …allow countries to choose an exchange rate regime and to be autonomous in capital account liberalization.

13. …improve the framework in which financial markets operate, e.g. through “principles of corporate governance”.

14. …think of a World Financial Authority for managing systemic risk.

15. …establish an “international labour exchange”.

( Source: “The United Nations University” Policy Brief by courtesy of : World Institute for Development Economics Research, Helsinki, Finland ).