The problem with existing institutions is that they developed in a very different kind of world. They are subject to all kinds of path dependencies, and are quite capability of generating feedback that reinforces their own necessity. So the institutions of global finance have successfully positioned themselves as ‘too big to fail’. The institutions of global environmental governance have failed to produce a comprehensive global treaty on anything since the Montreal Protocol for the protection of the ozone layer in 1987 – but that aspiration remains the focus of the efforts of most concerned actors, be they governments or environmental NGOs.
Excellent article by John Dryzek on LSE blog on the failure of current institutions to address the challenges of the social-ecological transition.