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

The document examines how Switzerland, as a 'small state', employs economic diplomacy and inter-ministerial coordination to influence global economic governance. It focuses on Switzerland's relationship with the G-20, the UN, and various international organisations (IOs) to protect its financial centre. The paper details the use of Regulatory Impact Analysis (RIA) and the Inter-Departmental Working Group G-20 (IDAG20) to align domestic policy with international standards while maintaining competitiveness in banking and taxation.

• Switzerland utilizes a specific inter-ministerial coordination structure called the Inter-Departmental Working Group G-20 (IDAG20) to manage its relations with the G-20. This group consists of the State Secretariat for Economic Affairs (SECO), the State Secretariat for International Financial Matters (SIF), the Directorate of Political Affairs of the Federal Department of Foreign Affairs (FDFA), and the Swiss National Bank (SNB).
• To improve the quality of its regulations, Switzerland institutionalised Regulatory Impact Analysis (RIA) in 1999. The process evaluates draft regulations based on the need for state intervention, consequences for different actors, implications for the overall economy, alternatives to regulation, and practical implementation aspects.
• Switzerland views the G-20 as the primary centre for global economic policymaking but expresses concern over the informal nature of its governance. The Swiss government argues that there is a risk that the G-20 is shaping the priorities and mandates of International Organisations (IOs) in an unprecedented and non-transparent way.
• As a non-member of the G-20, Switzerland employs a dual strategy: a proactive approach to influence G-20 agenda items and a preventive strategy to strengthen its positions within the IOs that the G-20 mandates to produce studies and policy recommendations.
• The Swiss financial sector is a critical economic pillar, contributing over 12% of GDP and 12–15% of tax revenues, while providing 195,000 skilled jobs. Its core business is concentrated in domestic retail and corporate banking and international asset management.
• Switzerland has faced significant defensive challenges regarding its financial centre, including being placed on an OECD 'blacklist' of unco-operative tax jurisdictions in 2009. In response, it has negotiated double taxation agreements with 25 states to incorporate the OECD standard on administrative assistance for tax evasion.
• Switzerland uses the Global Governance Group (3G), a coalition of small and medium-sized states, as an institutional vehicle for networking and alliance building, specifically to advocate for greater G-20 transparency.
• The document identifies that small states at the UN often struggle due to limited manpower for data gathering and exclusion from 'real discussions', which are often reserved for larger states or specific rotating memberships.

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} }