The debates on Global Governance came into focus again with the Global Financial Crisis. The initial trigger of Global Financial Crisis has occurred in the housing mortgage market of United States. The closely integrated financial markets led to transmission of crisis across the continents. The crisis has witnessed close coordination among national governments, multilateral institutions, and central banks that has averted the collapse of global financial system. The central banks released abundant liquidity through swap lines, national governments initiated fiscal stimulus measures and multilateral institutions like IMF came with huge rescue packages. The crisis also led to the revival of G20 from a forum of finance ministers and central bankers to that of Country heads and State leaders. G20 became the most important platform where globally coordinated actions, decisions and reform initiatives were undertaken. The global financial crisis has witnessed the rise of emerging economies in to the global economic and political sphere. Emerging economies led by BRICS have managed to establish a strategic bargaining position in the emerging global governance sphere. The paper examines the background of Global Financial crisis that has warranted close coordination and revival of multilateralism. The paper also tries to examine changing paradigm of global governance and the role of emerging economies in the new global governance architecture.
Governance, Emerging Economies, Global Financial Crisis
