As the world becomes increasingly globalized, global economic governance has become a key aspect of economic and political debates. Various policy decisions which were previously deliberated within national governments are now taking global dimensions. Also, the growing interconnectivity of financial markets implies that shocks in specific countries would result in repercussions across the globe. Thus, this points to the need for effective participation of countries in the process of rule-setting in global markets and institutions. The GEG research area seeks to analyze the changing institutional context for global economic governance and the implications for African countries. GEG will examine four thematic areas of relevance to Africa:
Africa and the G20
The recent expansion in the scope of G20 issues to accommodate the developmental pursuits of African countries implies that the dynamics of its governance structure need to be fully understood by African scholars. This sub-theme will therefore focus on providing innovative ways in which the G20 can support Africa in pursuing its development objectives, by specifically conducting research on strategies to improve financial inclusion and food security in Africa.
BRICS and Africa Relations
This sub-theme will focus on exploring the recent rise in economic relations between Africa and the BRICS countries, especially in terms of Trade and Foreign Direct Investment (FDI). CSEA is collaborating with South Africa Institute of International Affairs (SAIIA) on research that will provide new insights into the BRICS-Africa economic relationship.
Financial Market Regulation
The limited integration of Africa to the global financial markets has been highlighted as one of the reasons the region was less affected by the global financial crisis. Global financial volatility creates adverse macroeconomic impacts for commodity-dependent countries in Africa. Thus, the financial market regulation agenda for Africa should follow a cautious approach in order to prevent the risk of exposure to global shocks. This research component tracks developments and policy debates on global financial sector regulation, and identifies appropriate policy prescriptions to ensure that Africa’s interests are being served by the current global financial architecture.
Global Economic Institutions
Over the years, the key players in GEG have been the International Monetary Fund (IMF), the World Bank/ International Bank for Reconstruction and Development (IBRD), and the World Trade Organisation (WTO). Recently, the G8, G20 and the Financial Stability Board (FSB) have emerged as significant policy actors. In addition, there are ongoing deliberations on the creation of an international finance organisation funded by the BRICS countries, which might complement or substitute the role of the major global economic institutions. The GEG research will look at these changes in the global economic institutions, and the implications for African economies.