Research On The G20Institutionalization

Since established in1999, G20has been defined as "an informal dialoguemechanism under the Bretton Woods system ". But during the first ten years, asa crisis response and prevention mechanism in international governance, G20had been marginalized. The2008financial crisis quickly spread throughout theworld, causing a huge impact on the world economy. Traditional internationalgovernance mechanisms---the G7?the IMF and other implementing agenciesfailed to play their due roles, while G20emerged as the core response to the crisisand quickly escalated into a summit. After Pittsburgh Summit Meeting, G20began to replace the G7as the primary platform for international economicdialogue.To date, G20has successfully held8summit meetings, and achievedremarkable results in response to the global financial crisis. But on the otherhand, in the post-crisis era, G20is also faced with how to transit from a crisisresponse mechanism to a long-term governance mechanism and how toinstitutionalize itself. The research of the G20institutionalization willundoubtedly have a value of theoretical and practical significance.This research will enrich the theoretical background of related disciplines,and provide more analytical frameworks and critical perspectives. Firstly, thestudy further enriches the subject of " how to design an international system ";secondly, the study reflects the latest changes in the international situation andpromotes the process of reform of the international economic institutions;Thirdly, the study reflects trends of global governance mechanisms and developsrelated theories; fourthly, the study provides new ideas for the construction ofinternational macroeconomic policy coordination mechanisms, and promotes thereform of the international monetary system.The research not only has a wealth of theoretical implications, but also hasa very urgent practical significance. First, it provides new ideas for the futuredirection of the G20; second, it enhances China's active participation ininternational affairs and helps achieve national interests. Therefore, the in-depthstudy of the subject is in line with China's development strategy. The profoundpractical significance is self-evident.With comprehensive analysis of relevant literature and argumentationframework of the whole paper, the study focus on the following points: First,from the perspectives of international political economy and international law,the paper seeks to make an interdisciplinary reexamination on the establishment,development and institutionalization of the G20, aiming at narrow the distancefrom the West in this field; second, focus on the inherent law of development ofthe G20as an international mechanism, such as its internal contradictions (inthe game of interest demands), intrinsic motivation (the common interests ofmember states), relations with other international mechanisms, reasons of institutionalization, in order to enrich the research of relevant internationalmechanisms; third, use scientific research methods, such as a combination ofqualitative and historical analysis, unity of economic and political perspectives,and try to avoid under-depth and subjective analysis.In the course of the study, theories of international mechanisms andinternational organizations play an important role. this paper starts withsummarizing the theories of global economic governance, with the wholetheoretical framework divided into three areas: first, the elaboration oftheoretical framework with the concepts of the origin of the world system;second, exploration of the reasons why the G20should be institutionalized fromthe IPE perspective; third how to design the mechanism from the perspective ofinternational law.In the process of mechanism design, the paper also draws extensively onthe experiences and lessons of other international mechanisms, comparingsystemically for hard and soft law of the WTO mechanism of hard law natureand the G7?APEC mechanisms of soft law nature, which provides a moreextensive practical background for nature positioning of the institutionalization.After studying the theory and practice lessons of relevant internationalmechanisms, the paper proceeds to interpret the historical background, existencebases and inherent contradictions of the G20, and makes a definite position forits nature.The analysis of the internal and external conflicts is supposed to refer tothe interests game of the member states, accordingly the paper has a thoroughdiscussion on the interactions to lay a foundation of international relations forthe G20institutionalization in the future, and thus forming an importantpractical reference for the possibility and feasibility analysis.With these studies as a basis, the paper demonstrates reasons for choosingthe legal framework in the mechanism design from the perspective ofinternational soft law, as well as makes the possibility and feasibility analysis.The IPE perspective applied in the design plays a role of substance of the G20construction, while the perspective of international law plays a role of theexternal form, with the content and the outlook combined to make it acomplementary framework in the design.In line with objective and innovative principle, the paper designs specificroute of the G20mechanism, dividing the whole process into three phases,namely the informal stage of soft law nature, semi-institutionalization stage ofsoft law nature, and the "carrot and stick" stage of institutionalization:The main task of the first stage is pave the way for the second stagethrough concrete preparations.2013St. The Petersburg Summit of2013clearlystated the main task of economic recovery: How to start the engine of investmentand how to achieve the purpose of reducing the risks through building theinternational financial architecture and preventing economic imbalances thattend to cause new crises. And this paper will take Petersburg Summit as theformal start of the G20institutionalization. The semi-institutionalization stage is the only way to the third stage whichtargeting the future mission of the G20as a long-term global co-ordinationmechanism. The organizational structure and set of specialized topics will befirst strengthened, which also meets the regularities of the soft law formation ofthe G20, namely molding soft law is subjected to a full range of procedures ofstandardization, institutionalization, etc. The feasibility research of a fixedsecretariat will be the focus of the organizational structure building. In order toseek the objectivity, the paper sets the blueprint as an alternative so as for thereaders to make independent judgments and screening. The construction ofspecialized topics set is divided into three steps: specialized economic issues,specialized financial issues, and the building of diversified issues.Over the years, the emphasis of the G20has been put on multilateralconsultations on economic issues, which are lack of implementation binding.During the post-crisis era, whether the G20can strengthen the premierinternational economic cooperation platform status and the role a long-termcoordinating body in global governance of, depends on its expanding force with abroad dynamic range. Therefore, at the third stage, the G20institutionalbuilding programs extend in five aspects:1. Enlarge fields of issues gradually;2.Control the access system for member states;3. Build the decision-makingmechanism;4. Build multi-level consultative framework;5. Establish theexecutive mechanism;6. Build mutual assessment procedures.China, as a member of the G20, will have a significant impact on thedevelopment of the G20mechanism; Similarly, G20will also have a profoundimpact on China's participation in international affairs as the most effectiveplatform for its global interests. This paper makes proposals in the last chapterfrom the Chinese perspective on the construction of the G20mechanism, namelyChina's strategy including China's attitudes and position, the potential intereststhat the institutionalization may bring China and the potential risk factors. AndChina's coping strategies is put forward logically in the end.The political multi-polarization and economic globalization of the world isunstoppable. Issues of finance, trade and investment are increasingly indivisibleto challenges like energy security, climate change, food security,counter-terrorism, etc. G20Summit of global issues provides the bestcommunication platform in this regard. However, due to various demands,different overall strengths of the member states, and the ever changing worldsituation, interwoven interests of the parties often make it difficult to achieve awin-win final outcome. How to overcome the difficulties of governance in orderto guarantee a sustainable world economy growth is a mission the G20institutional building process is all concerned with.