New Global Rulers

List of Illustrations and Tables ix List of Acronyms xiii Acknowledgments xv Chapter One: The Rise of Private Regulation in the World Economy 1 Chapter Two: Private Nonmarket Rule-Making in Context A Typology of Global Regulation 18 Chapter Three: Institutional Complementarity Theory 42 Chapter Four: Private Regulators in Global Financial Markets Institutional Structure and Complementarity in Accounting Regulation 60 Chapter Five: The Politics of Setting Standards for Financial Reporting 99 Chapter Six: Private Regulators in Global Product Markets Institutional Structure and Complementarity in Product Regulation 126 Chapter Seven: The Politics of Nuts and Bolts- and Nanotechnology ISO and IEC Standard-Setting for Global Product Markets 162 Chapter Eight: Contributions to the Theoretical Debates in Political Science, Sociology, Law, and Economics 192 Chapter Nine: Conclusions and Implications for Global Governance 214 Appendix 1: Financial Reporting Standards Survey Additional Survey Results 227 Appendix 2: Product Standards Survey Additional Survey Results 234 Appendix 3: Survey Methods 238 References 249 Index 289

Tim Büthe is associate professor of political science and a senior fellow of the Rethinking Regulation Center at Duke University. Walter Mattli is professor of international political economy and a fellow of St. John's College, University of Oxford. His books include The Politics of Global Regulation (Princeton).

[The New Global Rulers] is an example of first-rate research that offers thick descriptions, compelling theory, and convincing empirical results. The authors have done a masterful job in expanding our knowledge and understanding of globalization, and the book deserves to be widely read. -- John Doces Comparative Political Studies Their comprehensive survey provides compelling evidence of their theory and invaluably enhances our understanding of international standard setting... The authors can ... take credit for having developed a convincing theory on the main drivers of power within this specific and widespread phenomenon of global ruling. The book is, without a doubt, highly recommended. While it is primarily intended for scholars, it provides very interesting insights for anyone interested in how global standard setting works, in its historical, political, and socio economic background, and in its significance for global governance in general. -- Matthias Schmidt Accounting Review This interesting book about an overlooked subject has a misleading title. The global rulers in question are relatively anonymous nongovernmental groups that set international standards. Business exerts its power, both directly and through government, in selecting and influencing the rule makers. The rules help to determine winners and losers in the marketplace, as well as the public welfare. These rules also provide advantages to specific countries and regions. At a time when government regulation has fallen out of favor, the power of these unaccountable nongovernmental authorities deserves the closer scrutiny that this book provides. Choice Opening the 'black box' of private rule-making, [Buthe and Mattli] seek to analyze 'who writes the rules in international private organizations, as well as who wins, who loses--and why.' They dispute claims that international standardization is an apolitical scientific process, bringing to the fore the often under-appreciated political nature of