Impact of Global Governance on Regional Cooperation The G20 Summit and East Asian Financial Cooperation

This study analyzes the effects of the global-level governance mechanism on regional financial cooperation in East Asia since the G20 Summit was launched in 2008. First, the G20 has not had much impact on East Asian financial cooperation There has been slow but continuous progress in existing regional financial cooperation based on the IMF-linked Chiang Mai Initiative Multilateralization. Second, Chinese-led regional financial initiatives have burgeoned as a result of China s dual-track policies on global financial governance. This study contributes to understanding the global governance–regional cooperation relationship. First, the relationship varies by the legitimacy and effectiveness of global governance. Second, the leading country s role is crucial in shaping the direction of regional financial cooperation, and hence, the global governance–regional cooperation relationship. Finally, the relationship is complementary in the case of East Asia. However, with China s new regional initiatives, the global financial architecture will be more fragmented.