Reconstruction of the Old Institutions: Crisis, Governance, and the G20

Abstract

The recent global economic and financial crisis has fundamentally questioned the crisis management mechanisms of the international institutions. Despite the development of the skills of these institutions, financial vulnerability, economic imbalances, and the instability of the macroeconomic performance indicators are still rising cyclically. The G20 represents roughly 85% percent of global GDP and two-thirds of the world population. It emerged as a leading body for international economic performance. The lack of permanent secretariat of the G20 is decreasing the effectiveness, legitimacy, and the economic viability of the club. Regarding this philosophical background, the role of G20s' institutional structure is examined according to institutional capacity and the macroeconomic performance of the club.