Toward A Coherent Global Economic Governance Strategy Globalization is at the center of public debate throughout the world. It reflects the growing interdependence of economies, which goes far beyond the expansion of international trade and capital flows, to the diffusion of technology, culture, even democracy. It has also become entwined with the policy agenda of deregulation and liberalization in which governments have retracted from their legitimate and necessary roles to regulate markets at the national and international levels to ensure that economic development does in fact lead to social progress. The strategy of sustainable development allows these issues to be discussed coherently from a public management perspective. Unfortunately, efforts to make free trade and sustainable development policies more compatible have faced significant obstacles over the years: the two communities have distinct goals, traditions, operating procedures, and languages; the ultimate goods for advocates of sustainable development (equity, environmental protection) have often been the consummate bad for advocates of free trade. A divergence in the value systems between proponents of free trade and sustainable development would occur in the absence of world trade and investment; however, ethical questions have become more difficult and urgent in an international context as economic decisions in one country impinge on environmental, health, and labor conditions in other countries. Ethical questions also arise in allocating the costs of development in an intergenerational context. Who is to bear the cost of employee health and safety? Will market regimes shift more significant costs of environmental protection to future generations? Are such regimes more effective than government regulation? Are they more equitable? The need to collapse efficiency, equity and the related issue of stewardship may be most acute in discussions revolving around the issues of climate change, species decline, population growth, immigration and other problems in which the international and intergenerational distribution of costs and benefits is central. Economics and politics cannot answer purely ethical questions associated with these and the growing number of issues with global implications, but a public management perspective can greatly help in sorting out the issues, identifying more or less efficient and effective trade measures, and tracing through the equity implications of development, trade, environmental and labor policies. The central theme of this study is that the current economic paradigm supporting free trade and multilateralism needs to be viewed in the broader context of trade-economic growth-environment and sustainable development. In the absence of such integration trade is unlikely to be sustainable. Moreover, the greater awareness of the tradeoffs in this regard, the greater will be the potential for a sustainable world trade system. The paper proceeds as follows: First, a discussion of the role of trade liberalization in promoting current global development patterns is presented. This is followed by a discussion of the general approach of trade law to environmental and labor issues, noting the most important shortcomings in this regime. Based on the above, what are the implications of this for the public sector? The paper suggests that the erosion of effective public regulation or “governance” results in high social costs that pose the most serious threat from globalization. Moreover, the erosion of public authority reflects the shortcomings of the present paradigm of international economic governance (i.e. a growing “governance-gap”). Finally, an alternative model for reconciling trade, labor, environmental, and other developmental concerns is presented which is more sensitive to unique economic, social, political, and administrative conditions in developing regions. Its deployment suggests that supranational organizations, not free trade agreements, are the most viable structures for reconciling global trade, development and environmental needs. [ABSTRACT FROM AUTHOR]