PM Nguyen Tan Dung on January 28 delivered a speech at the World Economic Forum’s Plenary Session on Reshaping the Global Governance in Davos, Switzerlands. Below is the speech in full.

PM Nguyen Tan Dung speaks at the WEF on January 28 (photo: government’s website).

I would like to share with you my thoughts on reshaping the global governance by underlining the following points:

1. The global economic and financial crisis has unveiled a series of shortcomings in the global governance system. Along with fast changes in the global politics and economy in the midst of deepening globalisation, we have seen continued developments in the world powers’ balance leading to increasing risks of the world economy, thus requesting us to reform and enhance the governance around the world.

It is no doubt that one of the urgent demands is to generate bigger democratisation in our global governance to make it better reflect the role and interests of countries’ groups, notably the developing nations.

2. The developing and emerging economies, over the past decades, have made strides on their development path with an increased proportion in the world GDP and income. These countries on one hand are requesting a more deserved position in the global governance map, and on the other hand possessing various sources to take up greater missions in maintaining, operating and building the governance system. This means the global community should give the developing economies a bigger role, living up to their gained powers and also has the right to demand the emerging economies to make larger financial and human resources contributions.

3. The reform requires efforts and activeness from each and every member of the international community no matter whether they are big or small. Viet Nam, after two decades of renovation, has stood up from a weak economy to showcase one of the success stories in Asia and the world. Viet Nam is by now ready and confident to make its contributions to creating a more equal and better life for the international community. Viet Nam has played a positive and responsible role in the international cooperation forums like ASEAN.

APEC, ASEM, and the United Nations. It is noted that after successfully completing the non-permanent member of the UN Security Council this year, Viet Nam has assumed the ASEAN Chairmanship.

Such achievements are partly attributed to an appropriate governance system. We have wisely developed the relationships between the State and market in the context when our economy is profoundly integrating in the world economy.

4. The reform of the United Nations, the most important organisation in global governance is facing a lot of challenges as countries have not yet reached the consensus on critical issues including the membership enlargement of the UN Security Council.

Nonetheless, the UNs’ recent efforts to increase its transparency, effectiveness and operational efficiency including the One UN Initiative piloted successfully by Viet Nam among other countries is commendable.

5. G20 is a right step forward. In the current global economic and financial crisis, G20 has succeeded in coordinating the global macroeconomic policy, helping the world economy get out of crisis and recover. G20 also boasts a broader representation, reflecting the new world situation compared with G8.

Yet it takes more time and concerted efforts for G20 to turn into a newly effective mechanism for global governance. To increase the representation of G20, I think that it is important to institutionalise the participation of regional organisations like ASEAN and other international financial and monetary institutions in G20. This is a necessary step to move forward.

Apart from that, G20 should early handle a raft of major issues such as the relevance and execution of agreed decisions and recommendations, relations between G20 and Bretton Woods institutions, policy-making mechanisms within the UN system including the General Assembly and the Security Council as well as the reforms of those institutions. This is actually a complex process full of interactions. I wonder whether it is now time for us on the platform of G20 to establish the UN Economic Security Council embracing a structure and mandates similar to the Security Council.

6. Good regional governance mechansims constitute important foundations for an effective global governance.

ASEAN is a good example in this connection. In fact, this very successful regional association has played a key role to the building of regional and inter-regional institutions in Asia Pacific with increased participation of other partners like the Asian Regional Forum (ARF); ASEAN+3, East Asia Summit (EAS), APEC, ASEM, etc. ASEAN has also effectively contributed to the global governance institutions as a regional coure organisation for cooperation meachanisms in Asia Pacific. Moreover, ASEAN represents the good will and desire of developing countries to develop an effective global governance.

It is special that ASEAN’s participation in the recent G20 Summits is not a symbol. In contrast, it is very significant to raise the voice of an important regional organisation in G20 and create conditions for ASEAN and regional mechanisms in which ASEAN keeps a central role to make better contributions to initiatives on G20’s policy coordination across the globe.

Thank you.