WATERLOO, Ontario — The financial crisis roiling the world is the result of serious shortcomings in domestic financial governance that have also highlighted gaps in the global governance of international finance and capital.
On any given day, mail is delivered across borders; people travel from one country to another via a variety of transport modes; goods and services are freighted across land, air, sea and cyberspace; and a whole range of other cross-border activities take place in reasonable expectation of safety and security for the people, groups, firms and governments involved.
Disruptions and threats are rare — indeed, in many instances rarer in the international domain than in some sovereign countries that should have effective and functioning governments. That is to say, international transactions are typically characterized by order, stability and predictability.