Emerging Regulation for Digital Economy: Challenges and Opportunities for Multilateral Global Governance

The role of information and communications technology (ICT), high-speed communication infrastructure, digital content and the digital economy as a whole is rapidly growing in the post-pandemic society. Simultaneously, competition for digital technologies and solutions and the contest to influence norms, standards and regulatory mechanisms is escalating. The new regulatory mechanisms and approaches are concurrently being shaped in the key international institutions, including the United Nations (UN), the International Telecommunication Union (ITU), the World Trade Organization (WTO), the Organisation for Economic Co-operation and Development (OECD), the European Union (EU), the Group of 20 (G20) and the BRICS group of Brazil, Russia, India, China and South Africa. This article presents analysis of the current cooperation on issues of digital economy regulation within the main international institutions. The study aims to assess the influence of the existing and emerging regulatory mechanisms on the balance of power between the key international actors. This assessment of the emerging mechanisms' impact on the balance of power among international actors indicates that advantages and leverage capabilities accruing from them are distributed unevenly. The advanced members of the OECD and the G20 gain significant advantages, and there is a risk that the new mechanisms will consolidate the balance of power embodied by the Bretton Woods system, which has successfully resisted decadeslong endeavours for its reform. However, regulation of the digital economy is not yet built as an established order. A window of opportunity was opened in 2020, not only to implement the G20's 2008 pledge to reform the international financial and economic architecture, but also to build a new digital economy governance system, ensuring that emerging markets and developing countries have a voice in decision-making commensurate with their weight in the global economy. The article is structured in three parts. The introduction presents the research questions and objectives and describes the parameters of comparative analysis and influence assessment criteria. The second section reviews the emerging mechanisms and instruments and reflects on their influence on the balance of power. The third section puts forward conclusions and recommendations for enhancing the influence of emerging markets and developing countries on the shaping and functioning of the emerging digital economy's regulatory mechanisms.