Global Economic Governance from the Perspective of a ‘Small State’: The Case of Switzerland

This research paper examines Switzerland's economic diplomacy as a 'small state', detailing its strategies to influence global economic governance and protect its financial centre. It highlights Switzerland's use of inter-ministerial coordination (IDAG20), its participation in the Global Governance Group (3G), and its dual-axis strategy (proactive and preventive) to engage with the G-20 and international organisations. The paper also discusses the challenges small states face at the UN and Switzerland's specific policies on tax information exchange and financial market stability.

• Switzerland employs a dual-axis strategy to manage its relationship with the G-20: a proactive strategy to influence the G-20's central agenda and a preventive strategy to strengthen its position within the international organisations (IOs) that the G-20 often mandates to produce policy recommendations.
• Switzerland expresses concern that the G-20's informal nature allows it to shape the priorities and mandates of international organisations in an unprecedented way, which may challenge legitimate governance arrangements.
• To maintain the competitiveness of its financial centre, Switzerland's financial market policy focuses on improving bank crisis resistance through increased equity capital, higher liquidity, and better risk diversification.
• Switzerland rejects the automatic exchange of information regarding tax matters, instead supporting a system where information is granted to foreign tax authorities only upon request in specific individual cases, provided that 'fishing expeditions' are ruled out.
• The Swiss government uses a Regulatory Impact Analysis (RIA) system, institutionalised in 1999, to provide federal authorities with transparent information for decision-making by evaluating draft regulations based on economic justification, actor consequences, and overall economic implications.
• Switzerland coordinates its relations with the G-20 through the Inter-Departmental Working Group G-20 (IDAG20), which consists of the Swiss National Bank (SNB), the State Secretariat for International Financial Matters (SIF), the State Secretariat for Economic Affairs (SECO), and the Directorate of Political Affairs of the Federal Department of Foreign Affairs (FDFA).
• As a small state, Switzerland utilizes the Global Governance Group (3G)—a coalition of small and medium-sized states—as an institutional vehicle for networking and alliance building, particularly on topics such as commerce, anti-bribery, and the environment.
• Switzerland's financial sector is a major economic driver, contributing over 12% of GDP and 12–15% of tax revenues, while providing 195,000 skilled jobs.
• Small states face systemic challenges at the UN, including a lack of manpower to cover all committees and exclusion from 'real discussions', which necessitates the formation of alliances to avoid being 'peeled off individually' by larger countries or blocs like the BRICS.

APA

Saner, R. (2012). Global Economic Governance from the Perspective of a ‘Small State’: The Case of Switzerland. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2012/12/Occasional-Paper-124.pdf

Chicago

Saner, Raymond. Global Economic Governance from the Perspective of a ‘Small State’: The Case of Switzerland. South African Institute of International Affairs, 2012. https://saiia.org.za/wp-content/uploads/2012/12/Occasional-Paper-124.pdf.

Wikipedia

{{cite report |last1=Saner |first1=Raymond |title=Global Economic Governance from the Perspective of a ‘Small State’: The Case of Switzerland |publisher=South African Institute of International Affairs |date=November 2012 |url=https://saiia.org.za/wp-content/uploads/2012/12/Occasional-Paper-124.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{saner2012global, author = {Saner, Raymond}, title = {{Global Economic Governance from the Perspective of a ‘Small State’: The Case of Switzerland}}, institution = {South African Institute of International Affairs}, year = {2012}, month = nov, url = {https://saiia.org.za/wp-content/uploads/2012/12/Occasional-Paper-124.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }