International Financial Architecture: General aspects 

Relevant publications

What progress on international financial reform? Why so limited? Griffith-Jones, S., Ocampo, J.A., 2002, ISS/IDS 

This paper reviews current issues in the discussions on reform of international financial markets. It also addresses the speed of the reform process, which has been slow. In the conclusion the authors give suggestions to improve the financial architecture quickly. The voice of developing countries in the discussion needs to be given more importance through increased participation in and technical knowledge on financial issues. Therefore, developing countries need to unite their efforts in achieving a more stable global financial system. Instead of large changes, the authors emphasise the possibility of making small, incremental changes to improve the international financial architecture step-by-step. Finally, they authors suggest the creation of a resource centre, which should support the participation and capacities of developing countries. This will in particular be useful for developing countries’ representatives at the IMF and World Bank.

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New Financial Architecture as a Global Public Good, Griffith-Jones, S., 2002, UNDP

This concise paper touches upon the problems in reforming the international financial architecture (IFA). It sets out the positions of various actors (e.g. industrialised countries, developing countries and the international financial institutions) in the proposals for certain changes in the IFA. The author advises developing countries to develop a coherent strategy for persuading industrial countries to support changes in the IFA.

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Capital Flows to Developing Countries – Does the Emperor Have Clothes? Griffith-Jones, S., 2002, UNU-WIDER, Helsinki

This paper focuses on capital flows to developing countries, in particular on the decision making of private investors and lenders etcetera, which supply capital to developing countries. The document identifies two major problems in these flows: low levels and reversibility. It questions whether the low levels of capital flows are structural or cyclical. The author finds signs of a structural decline of financial flows and advocates the introduction of measures which help to attract more capital and a review of measures which seem to discourage capital flows to developing countries, such as the Basel Capital Accord.

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Trade and Development Report 2001, Part II – Global trends and prospects financial architecture, UNCTAD, 2001, Geneva

The 2001 edition of UNCTAD’s Trade and Development Report is giving special attention to the international financial architecture. It was released prior to the International Conference on Financing Development in Monterrey, Mexico in 2002. The report discusses the ongoing reforms of the international financial system. Main topics include financial standards and codes, the role of private financial institutions in crisis management, and the exchange rate system. The report gives several policy recommendations and suggestions on how to continue the reform of the international financial architecture.