Building a Fairer World Order: Three Essential Reforms

There is a growing understanding that the current world order is deeply unfair. People around the globe are demanding changes to a system that often ignores the needs of the majority. To build a fairer multilateral system, we must redesign the international financial structure. This involves two major areas: how countries handle their debts and how the world taxes large corporations.

Brazilian President Luiz Inácio Lula da Silva spoke about this at the first Global Progressive Mobilisation meeting in April. He pointed out that democracy and material dignity are linked. If citizens do not believe their lives will improve, democracy becomes weak. Populists and other authoritarian leaders often exploit this fear. They falsely promise that only they can fix the problems of ordinary people. Without hope for better lives, many citizens lose faith in democratic institutions.

This same awareness is growing regarding the international order. When people bear the heavy costs of decisions made by powerful others, they feel left out. If those affected cannot influence the multilateral system or hold powerful actors accountable, the system will be seen as unjust. Legitimacy depends on inclusion. Without it, the global order loses its moral authority.

Fortunately, momentum is building for a global reordering. In May, United Nations Secretary-General António Guterres launched the Counting What Counts report. This report addresses a long-standing blind spot in how we measure progress. While Gross Domestic Product (GDP) remains an important metric, Guterres argued for a more sophisticated accounting system. He stated that we must "consciously align metrics with our actual goals—not proxy measures that obscure or hide the challenges our world is facing." GDP is often a proxy measure. It counts economic activity but ignores well-being, inequality, and environmental damage.

However, some worry that efforts to design a system around the global majority might fail. They fear the existing architecture will remain intact, simply with new leaders on top. To prevent this, the international community must focus on building enforceable mechanisms. These mechanisms must provide countries with greater fiscal autonomy. Fiscal autonomy means a country can manage its own money and resources without being controlled by external creditors or powerful nations.