Zhang Yuyan: The logic of global economic governance

Zhang Yuyan

Director of the Institute of World Economics and Political Research Institute of the Chinese Academy of Social Sciences/Member and researcher of the Ministry of Economics and Political Research;

Research direction: international political economics, world economy;

Representative works: "Selection of Economic Development and Systems", "International Economic and Political Science", "China's Peace Development Road".

Global governance is aimed at global issues, and the latter refers to the problem that the scope of influence is global and the problem of problems must be jointly implemented by countries around the world. Global economic governance mainly refers to global issues in the economic field. The most critical or most basic problem is how to maintain the strong, sustainable, inclusive and balanced growth of the world economy. Here, global economic governance refers to how countries around the world reach a series of rules or systems that help maintain and promote global economic growth.

Generally speaking, there are two reasons for the improvement of productivity. One is the spread of innovation and technological progress, and the other is the trade income based on division of labor and factor flow. It is not difficult to understand technological progress. Under the conditions without technological progress, only because different production subjects (here mainly refer to the country) to conduct division of labor and specialized production according to their own advantages, and then conduct transactions, which can increase the total output of the division of labor and the trading party. It is called trade income in economics. Although these two sources of growth are integrated and intertwined in reality, separate discussions in theoretical analysis will help us understand the source of growth, and then provide convenience for formulating more targeted policies and systems. The concentrated discussion here is how to maximize the global trade income from the division of labor and exchange from the country, thereby helping the world economy to achieve strong, sustainable, tolerance, and balanced growth goals. In view of the basic premise of exchange is that the ownership of the exchanges is effectively guaranteed and the contract reached by the parties beforehand is protected. Specifically, the issue of global economic governance and treatment is related to human economic activities. The main body of the behavior is to achieve its own interests to maximize its own interests into the country or state group. The background of its activity is the absence of the world government. A set of self -binding rules or systems formed by negotiation.

In today's world, global economic governance involves many areas, mainly including international trade and investment and monetary financial systems that affect the exchange of multinational goods and services, affecting production factors and capital cross -border flow. The issues closely related to global economic governance also involve policy coordination between supply chain, value chain, commodity supply and demand, climate change and low -carbon economy, and main behavior. The above -mentioned global economic problems have been effectively resolved in accordance with the interests of countries around the world. However, today the world still has a relatively obvious governance deficit in the process of dealing with global economic issues. Therefore, how to reduce and eventually eliminate the global economic governance deficit has become a "higher dimension" global issue facing humans. One of the reasons for the benefit of the benefit of the well -being of all human beings is that one of the root causes is that the common interest is not a sufficient condition for the formation of collective action. Specifically to global governance, the question is how to share the cost of governance and how to share the income of governance. In economics, this is the so -called collective action problem: because the results of collective operations do not exclude him, members of the collective will work hard to take a stool. This leads to two results: one is that public products provide obvious deficiencies, and the other is that global economic governance, which is manifested by international systems, usually has obvious non -neutral characteristics, that is, the same governance means different results. Some benefit, some are damaged.

If you consider the geopolitical and economic competition between the great powers, then the mutual benefit and win -win situation will at least be unacceptable to Pareto's improvement of free trade. In 2004, the well -known economist Paul Samuelson pointed out in the article "Where does Li Jiatu and Mueller refute or confirm the mainstream economist who supports globalization" pointed out that Li Jiatu, who praised free trade -Mueller The model is established when technological progress is established, but after incorporating technological progress into analysis, the model may have a problem. Samuelson uses the United States and China as an example that if China's productivity is raised to the level that the two countries are exactly equal when producing the two products, their respective comparative advantages will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear, and the two countries will disappear. Back to self -sufficient state. Due to technological progress, China's per capita income has been improved, and the end result is that the actual per capita income of the United States has suffered persistent damage.

Under the premise of temporarily regardless of the geopolitical game between the great powers, one of the ideas of solving the problem of collective action in the process of global economic governance is the design of effective governance. Global economic governance requires the behavior of various countries through equal negotiation. After fully considering the balance of the cost of the affordable and shared income of each member, it gradually forms a multilateral rule accepted by each member. In the process of mechanism design, the key is to reduce or eliminate moral risks and reverse choices by providing compatible incentives, and to create selective incentives to reduce or eliminate ride -hailing behaviors. In the case of limited governance resources, countries can sort global economic issues based on urgency, severity, and feasibility, and to slowly divide the policies according to the severity. If it is difficult to reach a consensus for a while, you can consider it to zero, and divide a package of issues into several modules to deal with it.

The mutual benefit and win -win brought by free trade is not satisfied with all beneficiaries.After 1850, the scepter of the manufacturing hegemon was gradually transferred to the United States.Therefore, in the context of the intensified game between great countries, at all sacrifices to sacrifice their own interests, it is necessary to curb the rushing momentum of opponents to become its dominant strategy. As a result, the global system is divided or two or more limited parallel systems, which eventually leadThe global unified market's atrophy and the retraction of global trade revenue.To prevent the decline in this global welfare level, it can be multi -pronged: first of all, the trust of recovery or establishing a large country; secondly, the intersection benefits of mining and use in the field of non -economic and trade fields to increase the cost of decoupling; once again, the maximum parallel system is not subject to the unwelling system.The trading income brought by the coming; finally to strengthen economic and trade cooperation with middle -aged power and the majority of emerging economies and developing countries.Source: China Social Science Network-Journal of Social Sciences of China

Author: Zhang Yuyan

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