Opening-day speakers say yes, multilateralism is in crisis

Yes, multilateralism is in crisis because it does not seem to be equipped for dealing with the problems of today. While this was the blunt assessment of the speakers during the opening day of Public Forum 2012, they also expressed general optimism for the future of multilateralism.
In his welcome speech to the Public Forum, director-general of World Trade Organisation (WTO) Pascal Lamy said that “the rules of the game — whether in the trade sphere, in the economic sphere, in the environmental or food security spheres —and indeed across all areas of international policy making, are in need of adjustment.”
He said that “this year’s forum will deal with a vast array of challenges that you, yourselves, have brought to the house of trade. Over a three-day period, we will be hearing from you on issues as diverse as trade and the environment and the regional Free Trade Agreements (FTAs).”
The former President of the Swiss Confederation, Micheline Calmy-Rey, in the Forum’s inaugural speech, said that “multilateralism is failing on many fronts and is clearly unable to deliver in these very difficult times we are witnessing across the globe.”
As an example, she said that “the inability of the WTO members to agree on the conclusion of the Doha Round is certainly a setback that is very difficult to understand particularly within the context of the current crisis.”
Calmy-Rey commended “the excellent work done by WTO to monitor protectionist pressures,” adding that the multilateral trading system “can help (WTO members) contain extreme protectionist measures.”
Director-General Lamy and Calmy-Rey were also members of the inaugural panel session on “Is Multilateralism in Crisis?”
During the panel’s discussions, Lamy said that multilateralism is not in good shape because it is 20 years outdated. With all the changes in the world and in globalization, the current system shows it cannot adjust to it and the present economic crisis does not help, he said.
Calmy-Rey said that the international institutions do not reflect today’s realities and that there is a big need for reform.
Minister of Trade of the United Arab Emirates (UAE) Sheikha Lubna Al Qasimi also considered that present day rules are not up-to-date and need upgrading.
But to the question from the moderator, Andrew Harvey, former BBC presenter, on whether the panelists were optimistic or pessimistic for the future of multilateralism in about five years’ time, Chile’s senator Ricardo Lagos, Calmy-Rey and vice chairman and chief financial officer of eBay International Nicholas Staheyeff, said they were optimistic.
Al Qasimi said she was ‘carefully optimistic’ and Lamy said he was ‘carefully pessimistic’.
On his assessment for the future, Staheyeff said that the future multilateral system will need to learn to cope with increased volatility in trade and economic conditions and be “ready for a bumpy ride”.
There were not many solutions given to the problem.
Lagos mentioned that countries will have to learn to give up some sovereignty, and Calmy-Rey said that because many issues are solved at the international level, if countries want to have more influence in the world they’ll have to play internationally.
Lagos also made a passing reference to the fact that the five members of the UN’s Security Council do not reflect today’s realities.
The work of the WTO was discussed, in particular the importance of this institution to remove frictions, the negotiations on trade facilitation to facilitate customs procedures and to remove ‘trade obstructions’, the fight against protectionism through its monitoring mechanism and also its work to encourage more financing for trade.
Calmy-Rey also said that the WTO system of common rules and disciplines is a good example for other international organisations.