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Memo Date: 2/20/00 To: The President From: Francis Fukuyama RE: Issues for the Future: New Models for International Governance I believe that one of the most important and difficult political issues that will emerge over the next few years concerns the development of new models for international governance mechanisms, to supplement and perhaps eventually replace the institutions we have today. The chief international reality of the present age is globalization. Globalization means that capital, goods, and information can now cross national borders much more easily and rapidly that previously. But it does not necessarily mean that labor or culture have globalized, and it has not brought about a globalization of political institutions, which still remain organized around nation-states. Globalization creates a sense of democratic disenfranchisement, because existing political institutions are incapable of giving democratic publics power to control developments in the global economy that seriously affect their lives. Without remedying this situation, continued globalization risks provoking a backlash and delegitimizing itself. The problem today is that nation state-level institutions do not scale up well to international ones. I am not talking here about world government, which is neither achievable nor desirable. The United Nations, while occasionally useful as an instrument of US and other national goals, is a highly defective and unfixable organization. The more effective tools of international governance have been the more specialized bodies within the UN system like the World Bank and IMF, the ITU, the WHO, and the like. These have been more successful because of their more limited mandates, and because agencies like the IMF and World Bank are governed hierarchically by the nations that fund them. But the specialized agencies also suffer from what one might call the defects of scale. The International Telecommunications Union (ITU), for example, is modeled on the national-level centralized, hierarchical PTTs that are its constituents, and is far too slow and cumbersome to keep up with the march of modern information technology. While no one has been eager to regulate information technology (IT) on an international basis or to set up new international institutions to take on such a task, it is clear that the world will need new governance institutions in the future. For example, environmental regulation is something that increasingly needs to be carried out on an international basis, and there are currently no institutional fora for addressing the issue. Not all technologies are as benign as IT; to take just one example, biotech raises a host of concerns that can be addressed only on an international basis. But even if the world's most powerful countries wanted to establish new rules on, for example, human cloning or germline research, there are no regulatory bodies in existence that could enforce them. 2/20/00 Confidential 1

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    "ocrText": "Memo\nDate: 2/20/00\nTo:\nThe President\nFrom: Francis Fukuyama\nRE:\nIssues for the Future: New Models for International Governance\nI believe that one of the most important and difficult political issues that will emerge over the next\nfew years concerns the development of new models for international governance mechanisms, to\nsupplement and perhaps eventually replace the institutions we have today.\nThe chief international reality of the present age is globalization. Globalization means that\ncapital, goods, and information can now cross national borders much more easily and rapidly that\npreviously. But it does not necessarily mean that labor or culture have globalized, and it has not\nbrought about a globalization of political institutions, which still remain organized around nation-states.\nGlobalization creates a sense of democratic disenfranchisement, because existing political institutions\nare incapable of giving democratic publics power to control developments in the global economy that\nseriously affect their lives. Without remedying this situation, continued globalization risks provoking a\nbacklash and delegitimizing itself.\nThe problem today is that nation state-level institutions do not scale up well to international\nones. I am not talking here about world government, which is neither achievable nor desirable. The\nUnited Nations, while occasionally useful as an instrument of US and other national goals, is a highly\ndefective and unfixable organization. The more effective tools of international governance have been\nthe more specialized bodies within the UN system like the World Bank and IMF, the ITU, the WHO, and\nthe like. These have been more successful because of their more limited mandates, and because\nagencies like the IMF and World Bank are governed hierarchically by the nations that fund them. But\nthe specialized agencies also suffer from what one might call the defects of scale. The International\nTelecommunications Union (ITU), for example, is modeled on the national-level centralized,\nhierarchical PTTs that are its constituents, and is far too slow and cumbersome to keep up with the\nmarch of modern information technology.\nWhile no one has been eager to regulate information technology (IT) on an international basis or\nto set up new international institutions to take on such a task, it is clear that the world will need new\ngovernance institutions in the future. For example, environmental regulation is something that\nincreasingly needs to be carried out on an international basis, and there are currently no institutional\nfora for addressing the issue. Not all technologies are as benign as IT; to take just one example,\nbiotech raises a host of concerns that can be addressed only on an international basis. But even if the\nworld's most powerful countries wanted to establish new rules on, for example, human cloning or\ngermline research, there are no regulatory bodies in existence that could enforce them.\n2/20/00\nConfidential\n1"
}