First off, it should be democracies only. If a government is not voted in by frequent and fair elections, then it shouldn't be alowed to join.
That said, I would have it grow organically like the EU or the United States, voting to uphold some universal values and not to war with member states.
Primary concerns would be trade, environment, conflict resolution, space exploration, and other concerns of a global nature. And thats it. At every turn power must be minimized, capped, and otherwise stunted, for there is no escape from a runaway world government. No place to run.
The New United Nations (NUN) would function like a super-congress, with representatives elected at large from the regions they hail from. There should be no presidential position, for this would be way too dangerous.
I would also put it near the middle east, close conection between Africa and Europe and Asia, because that is where most of the action is.
Lurker
(eh, I'll finish this later)
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