Global institutions are creaking

International institutions have been challenged for some time, but pressures are building. New, flexible platforms are emerging in response.

From Washington to Geneva and beyond, the past few weeks have provided more evidence that multilateral institutions are creaking under the pressure of a changing world.  Big power rivalry is playing out in these institutions, weakening their effectiveness, at the same time as structural changes in the global economy demand policy innovation – from climate change to global trade. 

The IMF and World Bank have been caught up in scandal about the current IMF MD’s (and former World Bank Group Chief Executive) involvement in shaping China’s ranking in the now discontinued Doing Business rankings.  This leaves a stain on the reputation of those involved – and their respective institutions. 

But it also speaks to geopolitical tensions and changing power structures. The US objected to actions that favoured China, and were apparently inclined to let Dr Georgieva go; whereas the Europeans backed her.  These big power tensions greatly complicate the task of running the Bretton Woods institutions: t…