Regulation of World Economy
The paper contributes to the debate about the need for new regulations and institutions in the World Economy. Too much deregulation can lead to corporations being able to undermine basic social and human rights as well as lead to environmental damage, often without accountability. The world economy can no longer safely run on the basis of existing rules and institutions. In the first section of the paper the author deals with various aspects the regulation theory and public goods and then stresses the role of the World Trade Organization. The systemic nature of public goods requires very different handling than other objects of international cooperation. Multilateral trade system is in itself an international public good. WTO is the primary international body to help promote free trade, by drawing up the new rules of international trade. The World needs also the reform of the global financial architecture in order to stabilize the world economy, reduce poverty and inequality.