Author: Zeng Lu

What is global development governance? What are challenges faced by global development governance? What are changes in this process?

What is Global Development Governance?

Global development governance refers to the process and mechanisms of coordinating and managing the global development agenda and actions. It involves international organizations, agreements, rules, institutions, and mechanisms in the field of international development, covering global issues such as sustainable economic growth, social inclusion, and the protection of environment and global public resources. The objective of global development governance is to promote transnational cooperation and coordination in the international development sphere to address global issues and challenges faced by countries worldwide.

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Multilateral organizations such as the United Nations are at the core of global development governance.The United Nations (UN) is the most important global governance institution. The UN development system includes various funds, programs, and specialized agencies. Each entity has its own areas of work, leadership and budget. UN funds and programs are primarily supported by voluntary contributions. On the other hand, UN specialized agencies are independent international organizations supported by voluntary contributions and assessed contributions. The United Nations Development System (UNDS) agencies promote the formulation and implementation of the global development agenda through establishing rules, providing policy advice, and coordinating international cooperation among governments. International financial institutions (IFIs) such as the World Bank Group (WBG) provide funding, technical support, and policy advice to promote economic growth, social inclusion, and environmental protection, thus providing significant support for global development governance.

Major International Development Institutions

Organization	Mission/Goal	Established
	International Labor Organization (ILO) Advancing social justice and work rights globally.	1919
	International Monetary Fund (IMF) Achieve sustainable growth and prosperity for member countries.	1944
	World Bank Group (WBG) End extreme poverty and promote shared prosperity.	1944
	United Nations Educational, Scientific and Cultural Organization (UNESCO) Promote international cooperation and development in education, science, culture and media.	1945
	Food and Agriculture Organization of the United Nations (FAO) Increase the productivity of agriculture, fisheries and forestry and reduce hunger and malnutrition.	1945
	United Nations Children's Fund (UNICEF) Protect children's rights and interests and provide assistance in education, health, nutrition and protection.	1946
	World Health Organization (WHO) Provides global health leadership and coordination to promote health and prevent disease.	1948
	United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) Provide education, health, social services and emergency assistance to Palestine refugees.	1949
	United Nations High Commissioner for Refugees (UNHCR) Protecting and supporting refugees and displaced people around the world.	1950
	World Food Program (WFP) Alleviating hunger and malnutrition through food assistance and development programs.	1961
	United Nations Development Program (UNDP) Promote sustainable development, eradicate poverty, promote human rights and democracy.	1965
	United Nations Population Fund (UNFPA) Helping women and youth gain greater opportunity and lead healthy and productive lives.	1969
	United Nations Industrial Development Organization (UNIDO) Promote sustainable industrial development, promote economic growth and reduce poverty.	1966
	United Nations Environment Program (UNEP) Promote the global environmental agenda, promote sustainable development, and protect the global environment.	1972
	United Nations Office for Project Services (UNOPS) Help people build a better life and help countries achieve peace and sustainable development.	1973
	International Fund for Agricultural Development (IFAD) Support agriculture and farmers in rural areas to alleviate poverty and promote sustainable development.	1977
	United Nations Human Settlements Program (UN-Habitat) Promote sustainable urbanization and human settlements development and improve the quality of life of urban residents.	1978
	United Nations Entity for Gender Equality and the Empowerment of Women (UN Women)* Promote gender equality and women's rights globally.	year 2010

*UN Women’s predecessor, the United Nations Development Fund for Women (UNIFEM), was established in 1976.

International treaties and agreements are the foundation of global development governance.International treaties and agreements are formal agreements between states that provide a common legal framework and regulate the behavior and relations among countries. International treaties and agreements promote international cooperation, resolve disputes, and address global challenges. Examples of international treaties and agreements include the United Nations Charter adopted in 1945, the United Nations Framework Convention on Climate Change (UNFCCC) adopted in 1992, and the International Health Regulations (IHR) that came into effect in 2005. The UNFCCC establishes and implements emission reduction plans and coordinates financial support mechanisms, serving as a common framework for international cooperation in addressing climate change. The IHR, on the other hand, establishes a mechanism for international coordination and cooperation in responding to international public health emergencies, aiming to prevent, control, and respond to the international spread of diseases and provide public health response measures.

Other intergovernmental forum and cooperation mechanisms are important ways to promote global development governance.Global or multilateral intergovernmental forum and cooperation mechanisms such as the G7 and G20 promote dialogue, consultation and cooperation among different countries to formulate common policies to respond to and solve global problems.

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The G7 and G20 are international forums composed of the world's major economies, aimed at fostering cooperation and dialogue on global economic, financial, and other important issues. In the field of global development, industrialized countries coordinate policy positions through the G7 and engage in coordinated cooperation on common global development issues such as poverty reduction, health, climate change, infrastructure development, and gender equality. The G20, with a broader representation, is dedicated to enhancing international cooperation and addressing global challenges such as poverty reduction, climate change, and debt issues through policy coordination and cooperative actions.

Multi-stakeholder engagement contributes to global development governance.In addition to international organizations and national governments, civil society organizations (CSOs), private sector, academic institutions, and media contribute to global development governance by providing expertise, implementing projects, promoting public engagement, and monitoring relevant actions to advance global development goals. For example, CSOs advocate for the needs of vulnerable groups, implement projects, and provide services to foster action, drive policy progress, and promote social inclusion and equity. The private sector contributes to sustainable development by focusing on social impact, environmental sustainability, and responsible business practices. Academic institutions analyze and research policies, produce and disseminate knowledge, and engage in capacity building. The media disseminates information, raises awareness, serves as a watchdog, promotes public engagement, and contributes to social progress.

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The global agenda promotes international cooperation and coordination in the field of global development governance.Global agendas such as the United Nations Sustainable Development Agenda and the Climate Change Agenda provide the international community with a common vision, goals, and framework for specific development issues. They guide policies and actions of countries and promote global cooperation and coordination. The 2030 Sustainable Development Agenda covers a wide range of global issues and challenges, including poverty, education, health, gender equality, economic growth, and environmental protection, and has become a global consensus on international development. Countries recognize the need for collective action, enhanced cooperation, and coordination to achieve the Sustainable Development Goals. The Climate Change Agenda serves as a collective action framework for global efforts to address climate change. It sets common emission reduction targets for countries and encourages them to take action to reduce greenhouse gas emissions and mitigate climate change and global warming. It integrates climate action with sustainable development, encouraging the implementation of green development measures such as low-carbon economies, renewable energy, and sustainable cities, to promote the synergistic development of environmental protection and economic prosperity. It also emphasizes the provision of financial and technological support by developed countries to help developing countries adapt to and mitigate the impacts of climate change.

What Challenges does Global Development Governance Face?

Since the 1940s, global development governance mechanisms led by the United Nations have made significant contributions to improving the lives of the poorest and most vulnerable populations on Earth. However, global development governance mechanisms face multiple challenges today.

The existing multilateral system lacks adaptability and has limited capacity to address new challenges.The existing multilateral system's institutions and structures were originally established based on old geopolitical patterns or economic models, with the initial purpose of addressing the challenges of post-World War II reconstruction and the Cold War era. Today, new global challenges and issues such as climate change, global health, debt sustainability, inequality and poverty, geopolitical tensions, and terrorism continue to emerge in complex and rapidly changing ways, surpassing the response capabilities and adaptability scope of existing international institutions. Additionally, the existing multilateral system often requires consensus among member states to take action, but the slow and cumbersome decision-making processes are often inadequate for making timely decisions in rapidly changing circumstances, limiting the ability of the multilateral system to respond quickly to new challenges.

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Member states are demanding changes in existing global governance mechanisms to address new global challenges.The demand for changing global governance mechanisms is growing louder among nations. Many emerging and developing economies believe that multilateral financial institutions such as the World Bank lack representativeness, failing to objectively reflect the voice and representation of emerging and developing countries in the global economy, as well as their needs and priorities. Developed countries, on the other hand, advocate for reforming the mission of international organizations to enable them to better provide global public goods and address new global challenges such as pandemics and climate change. Additionally, member states are calling for reforms within United Nations development agencies to improve operational efficiency and implementation capacity, enhance institutional transparency and accountability, and strengthen coordination and collaboration with other international organizations, institutions, and stakeholders.

The lack of a strong enforcement mechanism makes it difficult to effectively implement global governance decisions.Some of the decisions reached by countries on global development governance are difficult to effectively implement due to the lack of a strong enforcement mechanism. Global development governance decisions are often advisory in nature and lack mandatory enforcement mechanisms. The implementation of such decisions largely depends on the voluntary actions of countries, and some may choose not to fulfill their development commitments or only superficially comply with them. Global development governance decisions often involve resource allocation and burden-sharing. In the absence of a strong enforcement mechanism, some countries may be unwilling to provide necessary resources or share corresponding responsibilities, resulting in uneven resource distribution and impacting the global development process. Additionally, member states of multilateral institutions have different national interests and priorities, making it challenging to reach consensus in addressing new global challenges, thereby limiting the ability of the multilateral system to respond to global challenges.

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Insufficient political will in some countries poses challenges to international cooperation in addressing global challenges.An increasing number of global challenges and issues require enhanced international cooperation. However, the complex and interconnected nature of these challenges often hinders countries from reaching consensus on crucial decisions. Some countries lack the political will to actively promote international cooperation due to domestic politics, national interests, and other reasons. They may fail to prioritize or adequately address key issues on the global development agenda, demonstrate a lack of enthusiasm in international negotiations and cooperation, and thus prevent consensus among nations, affecting the ability of global development governance mechanisms to address global challenges. Additionally, escalating geopolitical conflicts and economic competition have led some countries to emphasize policy autonomy, weakening their support for and commitment to multilateral institutions, further challenging the much-needed international cooperation.

Global governance decision-making mechanisms are unequal and fail to reflect the needs of developing countries.Some developed countries and major powers have greater power and influence in global development governance decision-making, while the representation and participation of developing countries are relatively low. This leads to difficulties in fully reflecting and balancing the needs and interests of developing countries in global development governance decisions. Some global development governance decision-making processes are opaque and non-inclusive, posing challenges for developing countries such as information asymmetry and limited opportunities for participation. Additionally, the implementation of global development governance decisions often has different impacts on developed and developing countries. Limited resources prevent many developing countries from effectively implementing global governance decisions. These challenges result in the inadequate protection and representation of the needs and interests of developing countries in global governance mechanisms.

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The progress towards sustainable development goals is far from optimistic.Since 2015, countries around the world have made significant progress in some areas of the sustainable development goals. However, factors such as COVID-19, climate change, Russia-Ukraine war, Israel-Palestine crisis, and global economic downturn have resulted in slow progress despite being halfway through the sustainable development agenda. In 2023, the United Nations conducted a midterm review of the sustainable development goals and found that nearly half of the agenda was moderately or severely off track, with 37% of the goals showing no progress or even regressing below the 2015 baseline. The "2023 Sustainable Development Goals Report: Special Edition" highlights that the COVID-19 pandemic has halted the progress made in reducing extreme poverty globally over the past three decades. If the current trends persist, there could still be as many as 575 million people living in extreme poverty by 2030. By 2035, global temperatures may rise to or exceed the critical threshold of 1.5 degrees Celsius.

Where is the global development governance system reform heading?

Multilateral development institutions are undergoing reforms to adapt to new global development challenges and demands.Driven by member countries, the United Nations system has initiated multiple rounds of reforms to adapt to the ever-changing global development challenges, enhance its effectiveness, and better achieve global development goals. In 1997, the United Nations Development Group (UNDG) was established to strengthen coordination and integration among development agencies. In 2006, the United Nations continued to promote the integration, collaboration, and efficiency of the development system to advance the Millennium Development Goals. In 2012, the United Nations further reformed to enhance coordination, integration, and cooperation within the development system, improve support and responsiveness to member countries, and drive the achievement of the Sustainable Development Goals. Meanwhile, multilateral development banks such as the World Bank, the African Development Bank (AfDB), and the Asian Development Bank (ADB) have also responded to member countries' demands by striving to mobilize more capital to support middle- and low-income countries in addressing global challenges like climate change. However, the reform of multilateral institutions still faces significant challenges and a long road ahead.

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Other intergovernmental forum and cooperation mechanisms have become useful supplements to traditional multilateral development institutions.During the COVID-19 pandemic, the total debt of low- and middle-income countries reached the highest level in decades, leading some countries to face sovereign debt distress. The G20 proposed the Debt Service Suspension Initiative (DSSI) and the Common Framework for Debt Treatments beyond the DSSI, allowing eligible low-income countries to temporarily suspend payments to official bilateral creditors and requiring debtors to seek comparable treatment from other creditors as agreed under the Common Framework. This provided immediate liquidity relief to participating developing countries, enabling them to allocate fiscal resources to address urgent health and socio-economic needs. Established in 2016, the Asian Infrastructure Investment Bank (AIIB) has become an important institution for infrastructure investment and development in the Asian region, making positive contributions to sustainable development in Asia. Multilateral and regional cooperation mechanisms and organizations serve as beneficial supplements to traditional multilateral development institutions by promoting policy dialogue and negotiations, facilitating regional cooperation and integration, and providing resources and support.

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Diversification of actors brings a new paradigm to global development governance.In recent years, emerging economies such as China, Brazil, and India have actively engaged in South-South cooperation, providing developing countries with a more diverse range of development cooperation resources and options, and injecting greater richness into global development governance. The involvement of philanthropic foundations, businesses, and impact investments brings new resources to developing countries and introduces different approaches and paradigms. Civil society organizations increase social participation and drive social progress. The participation of emerging economies, the private sector, and civil society organizations injects new impetus into global development governance, bringing diverse resources and solutions, enriching the global development governance agenda, and potentially enhancing management and implementation capabilities. At the same time, the more diverse range of actors also disrupts the existing balance of global development governance mechanisms and brings about new changes.

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Global development governance needs to undergo reforms towards a more open, inclusive, sustainable, and innovative direction.To effectively address current and future global challenges, reforming global development governance requires the collective efforts and collaboration of all stakeholders to ensure the effectiveness and sustainability of the reforms. Global development governance reform should strive to increase the participation and representation of developing countries, emerging economies, and other stakeholders to better provide global public goods. It should enhance coordination and cooperation among international organizations, governments, the private sector, civil society organizations, and other stakeholders while strengthening both South-South and North-South cooperation. Additionally, global development governance should continue to integrate economic, social, and environmental sustainability into decision-making and policy processes, and encourage all parties to pursue sustainable development pathways in areas such as green development, climate change, food security, and social inclusion. Reforms should also harness the potential of technological innovation and digitalization, promote debt sustainability to facilitate sustainable financing mechanisms and resource flows, and strengthen monitoring and accountability mechanisms to ensure compliance with commitments and standards.

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