Faced with pandemics, security crises, threats of global terrorism and crime, climate change and many other looming threats, new approaches to global governance are required. This does not mean that nation-state governance will become less relevant, but rather that effective governance is required at both the national and global level. The stakes for getting global governance right have never been so high.
The omens, however, are not good. If past decades are any guide, new problems will be thrown at old and outdated institutions. Finance is the best equipped and most institutionally developed of the global governance regimes, yet the Bretton Woods, Central Banks and many other financial institutions failed to predict, prevent, or understand the endemic systemic risks in the system. Moreover, these institutions have yet to elicit the structural changes needed to proactively manage future systemic risks. Systemic risks ultimately require systemic responses. However, the pace of technological innovation may be expected to continue to outpace regulation, and even the best-equipped institutions will struggle to adapt to the rapidly evolving complexity of systemic risks.