A Declaration of American Business Values: Ethics, Equity, and Efficiency in the New Millennium

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In Stage 1, a national ballot is held in each country. In contrast, in the RDP, a single regional ballot is held in each region in Stage 1.


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For every year t , the assignment process induces a probability p ijkt that country a ij is assigned to the UNSC in membership category k. Unlike for countries, when considering region equity, the assignment probabilities play no role as each region is always represented on the UNSC, and the identities of the countries that form the regional bloc are immaterial. Thus, as seems realistic, abstention is chosen less often than either of the remaining voting possibilities.

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Under the RDP, regional blocs vote according to these same probabilities. Following Felsenthal and Machover , , we take the efficiency of a voting body to refer to the efficiency with which its decision rule responds to the preferences of world citizens. The more difficult, a priori, it is for a resolution to pass, the lower the efficiency of the decision rule. Coleman defined his PTA measure only for voting games with two voting alternatives, i.

That is, we weigh each winning tripartition by its probability of occurrence, instead of simply counting the number of such tripartitions and dividing by 3 N. Since the s many different proposals for a second reform of the UNSC have been made. A more informative approach—one that allows us to disentangle the effects of the structural reforms separately from the effects of expansion—is to take individual structural reforms as the unit of analysis.

Accordingly, we analyze eight structural reforms Appendix 1 contained within 11 reform proposals put forward by various actors within the UN Appendix 2. Nearly all governments wish to abolish or limit the right of veto, which is viewed as an unfair and anachronistic legacy of the Second World War Fassbender ; Schwartzberg It is widely believed, however, that the five PMs would resist any such change Weiss and Young The position of the African Union AU is, therefore, that although it opposes the right of veto, if some countries are to have the right of veto, then this right must be extended.

As a fallback position, the AU has joined with several other states Italy, Mongolia, Singapore and Tunisia , to advocate particular structural reforms aimed at weakening the right of veto. In particular, we analyze the Weak Veto reform proposal WV , which contains as its structural reform that at least two PMs must vote against a resolution for it to necessarily fail Veto —. A further structural reform we consider is the redefining of the existing regional groups Regional Redefinition — RR.

Allowing renewable membership is also the principal structural reform in the reform proposal of the Uniting for Consensus UfC group headed by Italy, denoted UfC UfC In , Panama put forward a reform proposal Panama that also allows for renewable membership, but with the twist that any member elected to the UNSC for four consecutive terms would acquire PNVM status Panama We consider two further structural reforms, each associated with Italy which plays an especially active role in the UNSC reform debate.

In Italy , it published a reform proposal Italy that, as its structural reform, creates a new category of seat that rotates among the members of each regional group Rotate. A more radical structural reform—regional members RM —is to create a category of seat held by a region, rather than by any individual country.

The reform proposal associated with Present we refer to as Status quo. HLP B , Panama. We obtain these estimates through computer simulation of the UNSC assignment process under each structural reform, and at each degree of expansion over , simulated years. In this section, we detail our implementation of this simulation exercise. We would like to identify the effects of each structural reform, s , in isolation of the effects of expansion.

We therefore create the CVG C s associated with each structural reform s.

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As the response of our measures varies greatly depending upon this factor, if additional seats are assigned to regions according to a deterministic pattern, this introduces a cyclical form of noise into our results that obscures almost entirely the underlying trend. To uncover the trend, therefore, we assign each new seat to a region in a probabilistic manner in a manner we explain precisely in Appendix 3. Accordingly, we split the , simulated elections performed across different partitions of seats to regions.

Our reported results are the average values given by this process.

At present, the UNSC decision rule requires, as a necessary condition, that nine of 15 members, i. We shall, however, comment on the implications of allowing this threshold to change. This, however, again introduces noise into the results that obscures the underlying trend. Instead we adopt a probabilistic approach that sets the threshold to the closest integer values either side of 0.

Specifically, if 0. Again, our reported results are averages over , iterations of this probabilistic process at each degree of expansion. With the threshold thus specified, we compute the absolute voting power of each category of UNSC membership using the method of generating functions see, e. The left-most point of each line in Fig.

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As we then incrementally expand the membership of the UNSC, one member at a time, we form the locus of points given by each line in Fig. Thus, the right-most point of each line corresponds to the maximally expanded UNSC with 15 additional members 30 members in total. Comparison of the left-most points of each expansion line therefore reveals the pure effect of each structural reform separately from the effects of expansion.

Comparison of the lines away from the left-most point reveals the separate effect of expansion of the UNSC under each structural reform. We begin with an appraisal of each structural reform with no membership expansion. In Fig. We see in Fig. Each of these five structural reforms affect only the probabilities of assignment to the UNSC, leaving voting rights unchanged. It follows that each of these structural reforms leave the efficiency of the UNSC unchanged. With the exception of RM , which modifies the existing regional structure by making the EU a single actor, the remaining four structural reforms also leave regional equity unchanged, thereby only altering country equity.


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The worst of these five structural reforms i. The reform is associated with a marked worsening of CE as it concentrates when it would ideally dilute the distribution of expected voting power across countries. The second-worst of the five structural reforms that are weakly dominated by Present is Rotate , under which NPM seats are replaced with seats that rotate within regions. Rotate worsens CE as it as does not shift expected voting power away from the PMs to the remainder of the UN membership as would be desirable , but instead reallocates equalizes expected voting power within those remaining members.

This equalization of expected voting power is counterproductive, however, for under CE more populous countries warrant greater expected voting power than less populous countries. Again, Renew alters only proximity to the CE concept. The worsening against this concept arises as permitting reelection benefits disproportionately those countries that gain election more often, but Gould and Rablen show that such countries already receive at least their equitable level of expected voting power.

Accordingly, those countries with higher assignment probabilities become overrepresented, thereby exacerbating the underrepresentation of the remaining countries. Our modelling of this structural reform utilizes the anticipated membership of the EU as of April onwards, by which time the United Kingdom will no longer be an EU member state. This arises as the membership of the EE group is reduced when the EU members are removed, causing the remaining members to become highly overrepresented.

This effect could be mitigated, however, if implementation of RM were bundled with an appropriate rebalancing of the allocation of seats to regions.

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As may be seen in Figs. One structural reform does succeed in weakly dominating Present : RR. Under RR , the five existing regional groupings would reduce to four. This structural reform leaves voting rights, and therefore efficiency, unchanged, but leads to substantial improvements in equity. The bulk of the equity effect is seen in Fig.

Only one structural reform dominates Present : Veto —. Under Veto —, two PMs would need to vote against a resolution for this to constitute an automatic veto. By reducing the blocking power of each PM, Veto — increases the a priori probability of a resolution being approved to 2. The improvement in equity is attributable to discernible improvements in both CE and RE.

The former effect arises as Veto — succeeds in diluting the share of expected voting power held by the PMs through reducing their voting power ; the latter arises as the overrepresentation of EE and the WEOG is eased. In summary, Veto — aside, the types of structural reform under consideration yield modest, and often negative, effects on equity and efficiency. There are, thus, diminishing equity returns to expansion. Efficiency, however, is decreasing, and at an increasing rate, in the size of the UNSC.

Thus, incremental expansions of the UNSC generate increasingly large efficiency losses, and increasingly small equity gains. In spite of these qualitative similarities, however, we do see some important quantitative differences in the way expansion interacts with each structural reform, as we shall discuss below.

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One structural reform expansion-dominates all others: Veto —. In this sense, this structural reform wins out among those we consider. Alongside Veto —, one other structural reform, RR , weakly dominates Present at each expansion. Note in Fig.

1. Introduction

In particular, if expansion is by six or more new members, RM —under which the EU votes as a single actor—achieves greater equity than does Present. The other remarkable feature of the expansion lines in Fig. Last, we consider our results for the reform proposals.

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