Private Authority and Legitimacy in the International System

Abstract

This article confronts the problem of private authorities engaging in rule-making activities for public purposes. This form of rule-making raises questions about the justice, authority and, most importantly, legitimacy of these institutional arrangements. The private authority that creates rules in the international financial system relies on claims of efficiency and expertise. These claims focus on the rules created rather than the institutions that create them, institutions that are private and thus self-interested in a different way from public authorities. The article explores these issues through a review of the role of banks that engage in rule-making at the global level.