For example, the crisis has exposed the risk of regulatory arbitrage, shedding a more negative light on the competition among different systems and rules. In addition, the view that local governments are always driven by the welfare of their citizens needs to be qualified, as special interests often matter a great deal.
Those special interests are likely to exert less influence if the rules are agreed on at the international level. 1 2. How has global economic governance fared during the global financial crisis? Let me now turn to analyse how our global institutions have fared during the global financial crisis.