What a way to run the world

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Clubs are all too often full of people prattling on about things they no longer know about. On July 7th the leaders of the group that allegedly runs the world—the G7 democracies plus Russia—gather in Japan to review the world economy. But what is the point of their discussing the oil price without Saudi Arabia, the world’s biggest producer? Or waffling about the dollar without China, which holds so many American Treasury bills? Or slapping sanctions on Robert Mugabe, with no African present? Or talking about global warming, AIDS or inflation without anybody from the emerging world? Cigar smoke and ignorance are in the air.

The G8 is not the only global club that looks old and impotent. The UN Security Council has told Iran to stop enriching uranium, without much effect. The nuclear non-proliferation regime is in tatters. The International Monetary Fund (IMF), the fireman in previous financial crises, has been a bystander during the credit crunch. The World Trade Organisation’s Doha round is stuck. Of course, some bodies, such as the venerable Bank for International Settlements, still do a fine job.

But as global problems proliferate and information whips round the world ever faster, the organisational response looks ever shabbier, slower and feebler. The world’s governing bodies need to change.

Time for a cull?

There has always been an excuse for putting off reform. For a long time it was the cold war; more recently, “the unipolar moment” convinced neoconservatives that America could run things alone. But now calls for change are coming thick and fast. Britain’s prime minister, Gordon Brown, and America’s treasury secretary, Hank Paulson, want to redesign global financial regulation. Others are looking at starting afresh: John McCain is promoting a League of Democracies, while Asian countries are setting up clubs of their own—there is even talk of an Asian Union to match the European one. And many critics, especially in America, want a cull. Surely economic progress in the emerging world argues for getting rid of the World Bank? Is a divided Security Council really any use?