The Global Governance Reform, the G-20 and the Restructuring of the International Financial Architecture

The global financial crisis revealed that the international financial and monetary architecture has structural flaws. It was clearly seen that because of global economic integration, international cooperation is essential to restructure the international financial system and to constitute an effective global regulatory framework. In this conjuncture, significance of the global governance system and the G-20 increased. The aim of this paper is to evaluate the role of the G-20 in the restructuring of the international financial and monetary system within the context of global governance reform. To this end, effectiveness and legitimacy of the G-20 are analyzed by utilizing the global governance concept. The discussions and negotiations among the developed and developing countries about the restructuring of the global financial architecture are evaluated. International and domestic political,obstacles to global governance reforms and representativeness, coherence and compliance deficits of the 0-20 are investigated. It was concluded that the financial crisis enhanced the importance of global governance and the G-20 came out as the organization that could abate the representativeness, coherence and compliance deficits of the global governance system. Nonetheless, because of diverging interests of the U.S., the E.U. and the developing countries, it is expected that global governance reforms and the restructuring of the international financial system will proceed slowly.