WHICH INSTITUTIONS FOR RIGOR, WHICH INSTITUTIONS FOR GROWTH?

The role of rigor (and austerity) as a way to correct fiscal imbalances in the midst of the economic crisis, has been extensively debated over the last few years, and it is still a contentious issue to this date. The recipes imposed by the Eurozone authorities and by the IMF in the European sovereign debt crises have been widely criticized and contested. In one specific case, they have even been recognized as wrong. Well-known economists Carmen Reinhardt and  Kenneth Rogoff have been questioned in their main research finding of an existing inverse relationship between public debt levels and growth rates, beyond a certain critical threshold. On the other hand, there is a consensus that high levels of public debt are not desirable as they may pose a serious issue of sustainability and financial vulnerability. As a result, the need to keep the public budget under check is a broadly shared policy objective. A hotly debated issue, though, is whether the fiscal adjustment should be done during the crisis, at the risk of depressing growth, or whether it should be backloaded thus allowing the fiscal budget to support output and employment.

But, one fact is a logical antecedent to the debate itself: which institutions are supposed to be the best judges for choosing the optimal balance between rigor and growth?

A tentative way to start addressing this question is to assume a division of tasks between global agencies (like the IMF and G20), regional institutions (like the EU), and nation states. Each with its own set of competencies and responsibilities.

We then need to have some understanding of growth and rigor.

It’s hard to define growth. It is the result of a mixture of heterogeneous ingredients. Most of them are economic ones: the state may stimulate growth through public policies aimed at supporting investment and entrepreneurial initiatives. Similarly important are the institutional ingredients, such as the set of norms and rules aimed at encouraging certain economic behaviors or discouraging others, or the measures to make public administration more efficient or to reduce its costs. Other ingredients are social ones, such as public investment in health, education, and inclusiveness, which produce results in the long run. The whole mix of ingredients, moreover, has to communicate a sense of social justice and of shared efforts in order for it to be acceptable for the population.
Even though good practices may be of inspiration to countries engaging in pro-growth strategies, there is no such a thing as “the” right recipe for growth. Successful growth strategies differ from country to country, and across periods, and vary according to the strengths and weaknesses of each country, its culture, institutions, and level of technological development. The international context may influence domestic growth significantly.

It may be argued that growth has some kind of conceptual primacy inscribed in the mission of international institutions such as the IMF and World Bank, as well as of many regional organizations aimed at economic and financial cooperation. Of course, the way growth and other objectives are articulated in the charters of such institutions reflects, besides the different purpose and peculiarities of each, also the different times when their charters were written. Therefore, for instance, while the IMF Articles of Agreement (1944) show a conception of growth that is deliberately based on purely economic terms, the EU Treaty (1957 and revised many times) aims at a different, holistic, idea of growth, complemented by social elements, reflecting the cultures and politics of the region, as it has evolved over time.

Let’s explore now the meaning of rigor: it is understood to be a conduct (or even a set of rules) aimed at limiting excessive public debt and state deficit, and at restoring good governance and sound public finances. In practice, in the case of excessive deficits and/or debts due to cyclical or structural difficulties, rigor often translates into austerity policies, with cuts to public expenditures and high social costs.

Moving to the responsibilities and tools of international organizations, we do find many examples of interventions aimed at strengthening rigor rather than supporting growth. On the occasion of the recent European sovereign debt crisis, both IMF and EU engaged in supporting and restoring public finances in several countries. The Eurozone itself, in the process of strengthening its governance, added new instruments and regulations for disciplining public finances more effectively.

In the Treaty on the Functioning of European Union (TFEU) we find several rules of hard law that are intended for achieving more rigor, like, for instance, the articles 123-126 on fiscal discipline.

The best-known one is art. 126:

 “1. Member States shall avoid excessive government deficits. (…)”

There are, moreover, various legal acts specifying rules for rigor and the sanctions for violating them.

Frameworks for growth have also been contemplated at the global and European level, of which many G20 communiques and the Europe 2020 strategy are good examples. Yet they are all nothing more than good intentions, or soft laws at best. All the relevant policy instruments – and especially the budgets – are in the hands of national governments and parliaments.

We can draw the first conclusion: while international multilateral organizations have economic growth in their statutory mission, they are in fact best equipped for delivering rigor.

Why is this so? A simple but nonetheless convincing line of reasoning is that rigor is unpopular. And since the ultimate goal of politicians is generally to be elected
(or re-elected), policies for rigor tend to be avoided as much as possible by democratic governments (and, even more, by populist governments), unless they can be blamed on somebody else. On the other hand, nation states are best positioned and equipped to deal with growth policies, since it is at this level of government that one finds (i) democratic representation of citizens in order to have legitimate choices; and (ii) resources necessary for growth initiatives.

Thus, it is really not surprising that states have transferred the political price of unpopular (but necessary) measures for rigor to different levels of government, levels where there are no political elections. One of the consequences is that states are risking to kill international levels of government with unpopularity.

This dichotomy suggests a number of questions: (i) is nationally driven growth the best solution? Is it the best solution, if international organizations are responsible for imposing rigor?

The choice to place the tools for growth at the national level may appear in contradiction with the goals attributed to the IMF and the EU (as already mentioned), but also with the plans and guidelines for growth formulated periodically by the European Council and the Groups of States (G8, G20), which point to the need for making growth a commonly shared objective by the global community, one which requires international cooperative governance frameworks. At the same time, nation-states run against formidable obstacles to growth, as the international orientation to rigor inhibits their efforts to that end.

Back to growth: which are the main obstacles met by international organizations when they want to deal with growth? A first take involves responsibilities

If we believe that growth involves creative thinking and requires discretion, then we necessarily end up in the field of Politics (with capital P!), and leave the realm of technocracy.

This is substantially different than simply applying rules, which is what happens when international organizations intervene to enforce discipline.

Another obstacle is related to the budget. It’s not just a matter of having limited resources (even though, of course, larger budgets expand the set of feasible choices), but there is also an issue of “who” controls the budget. Only resources that are truly “owned” can guarantee independent (and creative) thinking.

Finally, there is an institutional issue. Growth requires a participative approach and a democratic institutional setup. A hard problem to be addressed is the coordination between the global and the national (as well as regional and local) levels of government. This is an area for multilevel governance and subsidiarity. Regional and global economic institutions may not impose growth recipes over populations but can offer useful fora for governments to discuss policy options and choices, which in the end only they can enforce.

In conclusion: if we consider rigor and growth from a purely “governance perspective”, we easily see that:

  • rigor is basically the application of rules;
  • it may be handled technocratically;
  • it has to be impartial (rules based);
  • it requires negligible budgetary resources;
  • it is easily and more conveniently delegated to supranational levels of government.

Growth, on the other hand, lays within the realm of political decisions. It implies a vision and requires making choices out of an infinite number of possible alternatives and combinations. The number of feasible choices grows with the increase of budgetary resources. Deciding on a growth strategy that is sustainable and inclusive demands democratic institutions.

 Rigor may, in fact, overrule growth preferences. The consequences are not merely economic, as they can have a significant impact on the democratic governance as well.

Democracy in International Organizations: a Supranational Approach.

2013TitleMap-IOPublic opinion’s demand for democracy at a global level has significantly increased in the last decade, due to the number of global challenges affecting humanity as a whole and the growing feeling of transnational interconnectedness generated by the internet. Unfortunately, international organizations are not (yet) equipped for democratic participation of individuals as they are basically intergovernmental.

An institutional formula for global democracy doesn’t exist yet and it’s time to invent it, reframing the very notion of democracy for this space which is not the familiar nation state we know since the Westphalian order.

Of course, we cannot imagine simply transferring what works at the national level – institutions and procedures – given the variety and complexity of organizations at international level. Moreover, we should consider the intrinsically difference of legal orders grounded on the membership of States instead of individuals, where even the basic principle of equality doesn’t fit.

The approach I suggest is grounded in a constructivist method: after deconstructing democracy in three basic components— legitimacy, accountability and inclusiveness—it is possible to reassemble them originally with the aim of their progressive strengthening.

This method will allow a realistic assessment of the level of democracy in international organizations and it will help promoting institutional reforms in line with the expectations of democracy in the global civil society.

A fundamental shift will occur from the typical intergovernmental model towards a more supranational one—as improving legitimacy, accountability, and inclusiveness naturally implies an increasing relationship between individuals and international organizations. The existence of a direct correlation between the role of individuals (or if you prefer of a demos) and the level of democracy appears to me a crucial topic.

I explain more about my reflections on this topic in this article, just released by The International Journal of Interdisciplinary Global Studies

Why Democracy is Declining

It’s no surprise that democracy is in a deep crisis, a glance at the democracy index by the Economist’s Intelligence Unit shows it clearly. According to it, only 4.5% of the world’s population lives nowadays in a “full democracy”. It was 9% only few years ago.

eui

This is even more evident in the very countries we always regarded as examples and bulwarks of democracy – Britain, France, US – the cradles of parliamentarism and of the rule of law.

I don’t say that these countries are not democratic anymore, I just worry about the amazing rise of populism and nationalism there, which are testing the democratic institutions as never before.

We can give so many different explanations for that: sociological, psicological, cultural… the liquid society and the solipsism and egotism of the modern human, the globalisation and rise of technology, the circulation of capitals and the social dumping, but I think that all this is just the background picture.

The real problem is in the dimension of the issues we face nowadays: migration waves, financial crises, global warming, terrorism…

Not one of these problems can be faced by a country alone, hardly by a group of countries acting together, even the European Union is struggling.

Citizens feel insecure, unsupported, and they expect answers from their political leaders, and from their governments. After all, this was the reason why the modern state was created in the first place: to offer security. Unfortunately, no state can offer this, not anymore.

Only populist politicians still offer promises and guarantees, do they know how illusory these are? Do their electors know?

And the easiest promise of all is the nationalist one: shutting the world out of the door, raising walls, guarding borders,  stopping people. Our country first… and only.

I understand the fear which originates these reactions and I am not here to add judgment and blame on the already excessive amount of judgment and blame we see around. I just don’t think this will work… if not to buy some time before the same problems knock to our doors again and again.

The solutions to these problems are difficult to imagine and hard to communicate. Nonetheless they do exist.

Just have a look at the agenda for Sustainable Development Goals  and at the countless initiatives started by private citizens to improve the state of the world, such as Geoversive, SimPol, the Good Country, ICRCCEN, Global Citizen, Business Fights Poverty,  and my list could go on and on…. Other solutions are possible and – even if we don’t see them on TV shows or in the news- other people are already thinking of them.

The decline of democracy can be stopped in two ways: one is in the hands of governments and it is the cooperation for the common good, the other is in our hands as citizens and it is in owning the awareness that we are global citizens and claiming for solutions at national and at global level.

Only stepping into our power, supporting and joining the initiatives and the causes aimed at solving our common problems we can still feel proud citizens of our state and and of this world.

 

 

 

To Brexit or Not To Brexit

The nowadays famous article 50 of the EU Treaty didn’t exist before the 2009 Lisbon reform.

The founding fathers’ vision of an ever closer union didn’t contemplate a way back … or a way out. The marriage had to be for life. But then, after the big enlargments in 2004 and 2007, some practical minds decided to foresee the possibility of a divorce.

And here we are, with a divorce we didn’t expect to see.
As a British colleague made me notice, the 48% of the voters who expressed the will to remain are not parties in this divorce process, they are the victims: the children.

And the divorce is not formalized yet and this doesn’t seem to happen anytime soon.

Those who say that enacting art.50 is a competence of the British parliament are certainly right, as the  parliament ratified and enforced the European treaties in the British legal order and cannot be bypassed by the goverment, repealing these acts. By the way, both the parliament and the government  look reluctant as they didn’t really want this outcome.

Those who say that the will of the citizens cannot be ignored are right too. It is absolutely reasonable that such an important decision should require a larger majority, but there wasn’t any rule about it and a majority won.

Both the fields -the Brexit supporters and the remain supporters – have solid arguments on their side.

But there isn’t only the British membership of the European Union at stake. That would be too simple an assumption.

The remain voters are not necessarily supporters of this Union, which has its own undeniable flaws. Most of them stand for an idea: being united with our  diversities, being  stronger together, being peaceful as a family which solves its own divergences discussing at a common table.
Most of them know that the Union is a work in progress which can be improved only from the inside. And they know there is much to gain from the EU’s open borders and European citizenships’ rights if you are willing to move, explore and challenge yourself and your national limiting beliefs. They reasonably don’t want to lose these rights.

The Brexit  voters come from a range of different experiences:

  • Some of them  have suffered and still suffer austerity;
  • Some identify Europe with a suffocating bureaucracy and  a political failure, which is how Europe as been sold to British people for decades: as a useful scapegoat.
  • Some expressed a feeling of antipolitics, they would probably have rejected any political establishment and just prove the  crisis of democracy we all see around us.
  • Then there are the champions of national sovereignty, and all sorts of nationalism.
    This feeling has been fueled by the huge migrations from the southern shore of the Mediterranean. It is a real emergency and nationalist attitudes won’t help to find a solution whatsoever. But still we can understand where this feeling comes from: fear. Fear of invasion, fear of sharing already meager work opportunities and national resources.
  • Finally, some think that a free rider state will thrive on the global market, possibly a more and more deregulated global market. This is a completely different attitude, but still anti-EU. And more than the other views it looks anti-historical as the world goes in the opposite direction: solving problems which become more and more global will require more integration, not less. Even little tax heavens are (finally!) under threat of extinction.

    I am totally empathetic with the “remain” voters and still, while I wish the best outcome for them, I wonder if a Brexit is politically avoidable.

    However the dilemma will be solved, some lessons need to be driven:

    ⁃       austerity has not been the solution to the financial crisis. In some countries it even worsened the economic situation. In many states unemployment is still at record level. The price was especially paid by the weaker part of the population, poverty and inequality provided a good soil for populism and nationalism. Moreover, it has been errouneously attributed to Europe, while it was a national solution (as I already explained).
    ⁃       There is a crisis of democracy and a rise of antipolitics almost everywhere. I have my theory about that: the nation states are not anymore the right institutional framework for tackling most of our problems, we need to go more local and more global at the same time. But – be right or wrong my explanation – we need a serious reflection on our contemporary democracies.
    ⁃       Finally, we need to work for a better Europe, we owe this to those who voted against it as to those who voted in favour. I have written about this and for sure I will write more extensively in the future. I’ve already been too long!

    For those who arrived to the end of my reflections: these are challenges not just for polical elites, not just for governments and states, but for all of us. And this is a call of duty for new brave political leaders at all levels.

Sustainable Development = Intergenerational Equity

From the Development Education Program of the World Bank Group:

What is Sustainable Development?

There are many definitions of sustainable development, including this landmark one which first appeared in 1987:

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

— from the World Commission on Environment and Development’s
(the Brundtland Commission) report Our Common Future
(Oxford: Oxford University Press, 1987).

But what does this mean? What are the needs of the present? Take a minute and jot down five to ten needs that you have in your own life.

Have you listed any needs that conflict with one another? For example, if you listed clean air to breathe, but also listed a car for transportation, your needs might conflict. Which would you choose, and how would you make your decision? If within ourselves, we have conflicting needs, how much is that multiplied when we look at a whole community, city, country, world? For example, what happens when a company’s need for cheap labor conflicts with workers’ needs for livable wages? Or when individual families’ needs for firewood conflict with the need to prevent erosion and conserve topsoil? Or when one country’s need for electricity results in acid rain that damages another country’s lakes and rivers?

How do we decide whose needs are met? Poor or rich people? Citizens or immigrants? People living in cities or in the countryside? People in one country or another? You or your neighbor? The environment or the corporation? This generation or the next generation? When there has to be a trade off, whose needs should go first?

The Long and the Short of It

People concerned about sustainable development suggest that meeting the needs of the future depends on how well we balance social, economic, and environmental objectives–or needs–when making decisions today. Some of these needs are itemized around the puzzle diagram.

What social, economic, or environmental needs would you add to the puzzle?

Many of these objectives may seem to conflict with each other in the short term. For example, industrial growth might conflict with preserving natural resources. Yet, in the long term, responsible use of natural resources now will help ensure that there are resources available for sustained industrial growth far into the future.

Studying the puzzle raises a number of difficult questions. For example, can the long term economic objective of sustained agricultural growth be met if the ecological objective of preserving biodiversity is not? What happens to the environment in the long term if a large number of people cannot afford to meet their basic household needs today? If you did not have access to safe water, and therefore needed wood to boil drinking water so that you and your children would not get sick, would you worry about causing deforestation? Or, if you had to drive a long distance to get to work each day, would you be willing to move or get a new job to avoid polluting the air with your car exhaust? If we don’t balance our social, economic, and environmental objectives in the short term, how can we expect to sustain our development in the long term?”

The notion of sustainable development highlights two different dilemmas:

I. How do we  balance  conflicting interests which can be equally important, ethically legitimate, both compelling? Admitting that evolution in technology, governance, infrastractures, investment flows may change the scenario in every moment: how can we adjust decisions over time? How will we avoid new imbalances?

II. How can we integrate in our evaluations the interests of future generations? How do we guarantee the rights of our children and grandchildren?

The answer are not simple ones, I even wonder if you or me or anybody else has such answers…

But, before working on the answers, we need to work on “how” we could arrive to such answers!

Mine may be the typical legal mind approach, but – follow me-  it has some merit:

I. We need to integrate in this evaluation all the possible perspectives. No matter how good a political decisor may be, the authority in charge cannot know everything. The largest the number of people having a say, the better. And we need to know who these stakeholders are: NGOs, civil society at large, lobbies, experts…. Whoever bears an interest should be invited to intervene, admitting that they declare who they are and what they stand for.

II We need the best data available at the moment of the decisions, and in case of conflicting or uncertain data a precautionary principle should stop doubtful decisions.

III Then, once the perspectives and the data are collected, the authority in charge – governments, parliaments, international organizations, agencies, technical authorities – should decide and take full responsability for their decisions. Systems of checks and balances should ensure proper accountability mechanisms. Procedures for claims are necessary. Affected individuals, at least through collective organizations, should be granted a right to dispute the decisions, and impartial courts and bodies should be in charge of these evaluations.

IV Finally, decisions affecting sustainable development should be revised if new data, new technologies or other relevant elements affecting the previous evaluations change.

How can we be sure that interests of future generations will be granted ? We just cannot.

It would be great to have an advocate for future generation in the main international fora, just imagine the representative of future generations as a member of the G20 (+1)!

As we are maybe not ready for that,  we can only hope that our grandsons and grandaughters, looking back at the way we managed their planet, will concede us that we did our best with what we had and using our current knowledge. Setting a good procedure.

 

The Global Vote

If you go to The Global Vote, you can pick an election, wherever in the world, and express your vote.

For sure, I will vote on Brexit and on American presidential elections and next year for the French ones…  Why? Because they affect me deeply, even if I live in Italy!

Why should we care about who runs the other countries?

Because to make the world work, we need a world of good leaders. Leaders who consider the needs of every man, woman, child and animal on the planet, not just their own voters.

We, the rest of the world, will achieve this aim by reminding each candidate that we’re here, we care, and we’re watching. We need them to do the right thing for their own country and for the whole of humanity, if they are elected.

By asking each candidate about their international intentions, election after election, that question will eventually become accepted as part of the normal election process for any Head of State or Head of Government. No leader will be able to stand for election unless they have a clear policy for their country’s role in the world and a vision of how they will co-operate and collaborate with other leaders and other populations.

Letting leaders know that we are watching them and evaluating them, we’ll make them pay more attention to the impact they have not just on their country, but on the world.

 The more people vote, the more impact this project will have. Can I ask you to spread the www.globalvote.org link around your own friends, family and networks?

With your help, one country at a time, we can build a world of good leaders. 

This is another great initiative by Simon Anholt, creator of the Good Country Project.

No Man is an Island

No man is an island,
Entire of itself,
Every man is a piece of the continent,
A part of the main.
If a clod be washed away by the sea,
Europe is the less.
As well as if a promontory were.
As well as if a manor of thy friend’s
Or of thine own were:
Any man’s death diminishes me,
Because I am involved in mankind,
And therefore never send to know for whom the bell tolls;
It tolls for thee.

Active Global Citizenship: Making the Climate Convention Work

First published on Vocal Europe

 

We are all shocked because of the floods in Paris and across most of central Europe: from Germany to Belgium to Romania. We are scared for the increased frequency and violence of such exceptional climate events, we are worried for our future and the future of our sons.

Yes, some commentators pointed correctly out that this kind of events – as exceptional as they are – already happened in the past, but everybody agrees that global aggregated data on temperature rise are unprecedented, at least as far as we humans can record.

And no events like natural disasters make us feel more powerless, just victims or scared observers.

Still, an attempt has been done – if not to restore the previous climate conditions – at least to slow down this crazy growth of temperature by limiting the impact of our species on the Earth’s ecosystems, to make it finally sustainable. This is the Paris Agreement on climate change, adopted by consensus on 12 December 2015 by 196 delegations, signed by 177 states and already ratified by 17 of them.

Unfortunately, as ambitious as it is, the Paris Agreement is not enough.

In the text, which is the result of the twenty-first meeting of the Parties (COP21) of United Nations Framework Convention on Climate Change (UNFCC), the member states “…Acknowledging that climate change is a common concern of humankind”, commit to hold “ the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 °C”.

The goal, so, it is not a correction of the current situation, but just the effort to stop further worsening.

While the convention offers some interesting guidelines to help to reach the goal –subsidiarity, transparency, responsibility – unfortunately it does not provide any real enforcement mechanism nor sanctions in case of infringement. The respect of so important commitments depends solely on the good will of the signatories and on the peer- review mechanism every 5 years.

We know that this isn’t enough, but how could we – the citizens – do something about that?

Well, actually, we can do something.

Through an initiative called “citizens’ climate engagement network” we can all do something.

And I have to thank Joseph Robertson, global strategy director at Citizens’ Climate Lobby for starting this wonderful lab for the empowerment of citizens across the world.

He was right when he wrote to me some days ago: “supranational democracy is underway!”

CCEN could be defined as a new global framework to support and expand direct citizens’ and stakeholders’ engagement in the intergovernmental process, in the surveillance over the States and the way they keep their commitments, in promoting new ideas and ways to stop climate change.

In practice, anybody can host a local working session, to contribute local insights and experiences to the global climate policy process. A toolkit for local sessions is on-line, ready to use. A platform will provide exchanges of views inside this community of engaged citizens. Finally, an Advisory Coalition meets once a month to share insights, think through challenges to meeting the mission of the CCEN, which is to ensure any voice from anywhere with an idea worth sharing can be heard in the global conversation.

The governance is completed by a secretariat and a global team of local networks of leaders, stakeholders and collaborators. The mission is to build a global base of local knowledge, relating to the Paris Agreement, and to bring all the local insight into the COP22 negotiations, making all voices heard. So increasing the legitimacy and the accountability of and the inclusion into the Paris Convention framework.

Representatives from several UN agencies and dedicated NGOs joined the advisory coalition  in their personal capacity, and I’m very glad to be part of it. And the UNFCCC secretariat hosted the initiative in its newsroom. It’s getting big!

What is most relevant in this bottom-up exercise, we learned the lesson that organized citizens may take a stance for global goals, so filling the gaps of global governance. The CCEN is a precious lab. It shows how active global citizenship is possible, as a path towards a more democratic world.

The effort behind this accomplishment could be replicated for other goals, empowering communities of committed people to work together as active global citizens: I think of associations and NGOs promoting human rights, fighting poverty, claiming for women and children’s rights. And these are just examples.

If there is a lesson we can learn from the climate change challenge, it is this sense of belonging to the human family, sharing a “common concern” as humankind.

COP21_participants_-_30_Nov_2015_23430273715-897x494

 

From the Chaos, the Tiles of a New World Order

In many mythologies, order is born out of chaos. Well…  there is hope, at least !

What we see around us is quite a chaotic world: magmatic and unstable, full of emergencies, slipping out of the control of inadequate social and political structures.

Some of us have the impression that time is ripe for a big leap, a cultural revolution as the only  possible alternative to sinking into the anarchic collapse of our societies or, even worse, a new fall into the hell of nationalism and war.

Some philosophers or mathematicians could object that we are used to live on the edge of chaos, being the world a complex system whose balance is intrinsecally unstable. Hence, the  chaos theory seems to ignore  – at least in the social science – the important variable that I would call human evolution.

The choice is not simply between chaos and complexity, on one side, and stability and order, on the other (an illusion sold by many populist politicians). The third way is the most realistic one, even if difficult to walk: ethically navigating the complexity to promote the emergence of new models and solutions.

How could that be possible?

I think many of us have have had insights about it, different but all convergent. I’ll offer a number of inspiring examples.

First of all, I see a rise in awareness. Many people started to feel global citizens and experience this awareness. For instance, the huge community of global citizens has an impact on addressing extreme poverty; everybody, supporting Movements, can help an activist for human rights in need; people signing petitions on Avaaz  take a stance on causes which are perceived as global. Interestingly enough, active global citizenship is being born bottom-up.

There is also a way to express this awareness as economic players. Many years have passed since Klaus Schwab had the brilliant intuition that modern enterprises must serve all stakeholders to achieve long-term growth and prosperity. Since then, his creature, the World Economic Forum, grew exponentially, still committed to improving the state of the world.

Even if the concept of social responsibility of enterprises is not new,  it is getting more and more popular: together with the narrative of disruptive change, the narrative of positively impacting the world has gained traction in the entrepreneurial environment. Beautiful initiatives as XPrize or Hive are thriving. A powerful example of this new way of being economic players is offered by Business Fights Poverty, a network of over 15,000 professionals harnessing business for social impact.

Private foundations are now big players in financing development, education, health care, social justice: One, Bill and Melinda Gates Foundation, Clinton Foundation, Open Society Foundations and many more… Philantropists appear animated by the desire of giving back to humanity, by the deep consciousness of their impact on millions of lives and by the side effect of living more fulfilling lives.

The civil society  -after a long season of demonstrations in the Nineties (against  G7, WTO, globalization) – started building bridges to make their voice heard by international actors. NGOs are more and more global actors, starting original initiatives to make international organizations more legitimate, accountable and inclusive.

The newborn Citizens Climate Engagement Network deserves a special mention as a powerful example of what individuals can do even in the apparently out of reach challenge of stopping climate change.

In this changing climate, States are somehow hanging back, as bulwarks of the status quo, a problem that Simon Anholt is addressing with the Good Country project. He deserves all our support.

Finally which institutional shape would better fit this changing world? Which model would sort us out of this “competitive mode” and organise humanity as a single species sharing  a single planet? This is my issue and this blog is my thinking aloud about it. You can read here and there insights and bits of a solution. Something to work on for decades!

I apologize if I forgot to mention many worthy individuals and beautiful initiatives, I know many of you are on this path of progress and evolution and, if you want to add some information posting a comment, I really appreciate.

It seems to me important – in a world focused on bad news – turn on a light beam on the emerging tiles of a different reality.

How long it will take for the puzzle pieces to get together?

Why Is Supranational Democracy so Difficult to Imagine?

The inadequate attention that international organizations’ statutes  give to legitimacy, accountability and inclusiveness hails from the limited role that IOs played at the beginning of their history and from the subsequent scarce attention to democracy in a setting different from the national state.

In today’s different international context, it is worthwhile to challenge the unsurmountable hurdles stemming from the use of the word “democratic” in connection with an international organization.

Even though there isn’t a generally accepted theory of democracy – or more broadly of supranational democracy – in international organizations, we can examine the possible portability of the individual elements that make up this notion from the state level – for which they were originally created – to the international level. This is the experiment I’m almost obsessed about.

However, two kinds of difficulties arise from the fact that we are not considering a community of individuals, but of nations.

The first obstacle is the difficult applicability of the principle of equality, inherent in the notion of democracy. It is based on the concept of equal dignity for all human beings which leads to ignore and even amend the differences that give some people a “birth right” to succeed. All states are sovereign and therefore equal inside the international community, but this principle is nothing but a fictio. Far from wanting to ignore or minimize the differences, the international community focuses upon the preservation of the status quo, which is attenuated only by the shared goal of the sustainable development and protection of fundamental rights. Even when all the countries will get, as we hope, to share similar levels of prosperity, they would be far from equal. Too many facets help mark the differences: the size of territories, populations and economies, as well as the control over natural resources and the weapon supply.

As a consequence, several organizations agree on the principle that states are differently represented to reflect their different situations. Other ones simply ignore their substantial difference, but special provisions or practices make some States more equals than others.

Important scholar studies try to offer solutions to this dilemma, but there isn’t any adequate diffusion and sedimentation of shared assessments. The reflection on the subject has followed two clearly distinct lines: the statism theory, which sees international democracy as the result of the joint action of the states, as essential building blocks; and the doctrine inspired by cosmopolitanism and transnationality, which is based on the assumption of a global demos.

Even if an international organization achieved the perfect representation of all its members and was thus fully legitimate to act, we couldn’t conclude that it was also, indirectly, fully representative of their citizens. In fact, if some of its member states weren’t democratic, or only partly democratic, they wouldn’t be representative of all their citizens. According to the Democracy Index 2015 of the Economist Intelligence Unit, only 20 countries out of 167 are full democracies.

Such a lack of legitimacy is inevitably reflected on the state’s opinions and stands in the institutions of the IO it is part of and on the overall credibility of the institutions themselves. This is a difficult legal dilemma, that can only be solved if the organizations require their members to be democratic – as the European Union does (even if it should keep a closer eye on their evolutions). It is obvious that in organizations with a universal membership the issue must be labeled as “non permanently solvable”and shelved.

There is so a good point for the cosmopolitan approach: only building on some kind of legitimacy driven directly from the global demos we can overcome the “states obstacles” which are their inequality and their imperfect democratic representation.

Even so, the imperfect representativeness that we assume as inevitable, could be compensated by accountability, which can be fully obtained at the supranational level also by designing and experimenting new legal and institutional forms.

International organizations are not really equipped for substancial legitimacy as they are not for full accountability. New channels and tools need to be imagined to provide that their decisions and lines of actions reflect the values and the will of the people.We need new and fresh ideas, in line with the reality (and the technology) of an interconnected society. 

Unfortunately, we are now accessing the realm of imagination, and here there are two more powerful obstacles.

The first one is the power of the status quo: the resistance of political and economic elites, the power of traditions and cultural heritages and the trite old say “it has always been so”.

The second obstacle lies in the fact that economic and legal minds are not really educated to work with imagination, at least not on a big scale. It’s easy to imagine a new interpretation of a rule or a new financial product, but what about a whole new system? Do we feel really empowered to do that?

We hear almost every day that challenging the status quo, working with imagination, “disrupting” are the new frontiers for entrepreneurs and marketers, but this is also true for those who want to prove themselves on institutional engineering… and maybe change the world, for the better.

Human Dignity: the Value Behind the Values

Yesterday, I was speaking with a famous law professor, defending my theory of democracy in international organizations – grounded on the three core values legitimacy, accountability and inclusion – when he said something that hit me deeply:

“democracy cannot but be grounded on human dignity”.

He was, obviously, right.

Had I forgotten the basic value of human dignity? Of course not. I had assumed it, taken it for granted. And this was a mistake, I have to recognize it.

Not only it was a mistake because it happens that the intrinsic value of every human being and every life is denied in many societies and especially to the weakest members of them, but also because if we want to understand each other on the meanings behind the words we cannot take anything for granted, we have a duty of clarity. After all, when I started this blog I took on this commitment, trying to define even words that everybody know, like democracy…. and I was forgetting such a meaningful ring in the chain of meanings!

How could we imagine a governance system legitimate by citizens, accountable towards citizens and inclusive of all citizens ….if citizens don’t have full dignity, just as human beings? Moreover, being all equally human beings, they all deserve the same respect and consideration, all enjoy the same fundamental rights.

This is clearly the grundnorm of every democratic system, what gives to legitimacy, accountability and inclusion their very meaning.

grafico dignity

There is another interesting consequence: all the citizens have the right to participate, all of them have the right to access the accountability tools (and this may even be considered a civic duty) but these are rights, never obligations. Individuals may as well chose to be on their own, do not use the democratic tools they are granted. The respect of their will to participate or not is, in the end, another way to respect their human dignity and their free will.