Reform of the International Financial System

Policy Brief 47, June 2018

Renewed crises in emerging economies and the IMF ‒ Muddling through again?

As recognised by the International Monetary Fund (IMF), the global financial safety net including international reserves, Fund resources, bilateral swap arrangements, regional financing arrangements is “fragmented with uneven coverage” and “too costly, unreliable and conducive to moral hazard”.  Given the aversion of emerging economies to the IMF and unilateral debt standstills and exchange controls, the next crisis is likely to be even messier than the previous ones.  Some countries may seek and succeed in getting bilateral support from China or some reserve-currency countries according to their political stance and affiliation.  In such cases, crisis intervention would become even more politicised than in the past and a lot less reliant on multilateral arrangements.  By failing to establish an orderly and equitable system of crisis resolution, the IMF may very well find its role significantly diminished in the management of the next bout of crises in emerging economies.  In other words, multilateralism, however imperfect, could face another blow in the sphere of finance after trade.

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SC Debate, 13 April 2018

Title:              Revolution Required: G7 Policies and Their Implications for Global Stability and Growth

Date:              Friday, 13 April 2018, 15H-18H

Venue:           Room XXII, United Nations, Geneva

Organizer:     The South Centre

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Research Paper 84, February 2018

Playing with Financial Fire: A South Perspective on the International Financial System

Playing with Fire (PWF) is a continuation of the analysis of the integration of Emerging and Developing Economies (EDEs) into the international financial system which Yılmaz Akyüz has carried out in his roles as senior economist for many years responsible for UNCTAD’s Trade and Development Report and Chief Economist at the South Centre. The treatment covers cross-border financial flows, increased commercial presence of foreign financial institutions in EDEs and their increased participation in their local financial markets as well as policy and regulatory issues. PWF deploys data on major cross-border financial flows on a gross as well as a net basis. This innovative approach facilitates identification of financial stability issues posed by the increased participation of EDEs in international financial markets.

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SC Book Launch, 10 November 2017

Title:               “Another Crisis in the Making?” Book Launch of Dr. Yilmaz Akyuz’s Playing with Fire,

                          Deepened Financial Integration and Changing Vulnerabilities of the Global South

Date:                Friday, 10  November 2017, 13h00-15h00

Venue:             Room XXII, Palais des Nations, the United Nations Office in Geneva

Organizers:   The South Centre

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Statement, October 2017

South Centre Statement to the Ministerial Meeting of the Group of 24

Below is the statement by the South Centre’s Executive Director Mr. Martin Khor which was distributed during the Ministerial Meeting of the Group of Twenty-four held in Washington DC on 12 October 2017.

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Policy Brief 43, August 2017

The Financial Crisis and the Global South: Impact and Prospects

The world economy has not still recovered from the effects of the financial crisis that began almost a decade ago first in the US and then in Europe.  Policy response to the crisis, the combination of fiscal restraint and ultra-easy monetary policy, has not only failed to bring about a robust recovery but has also aggravated systemic problems in the global economy, notably inequality and chronic demand gap, on the one hand, and financial fragility, on the other. It has generated strong destabilizing spillovers to the Global South.  (more…)

Research Paper 76, May 2017

The Financial Crisis and the Global South: Impact and Prospects

The world economy has not still recovered from the effects of the financial crisis that began almost a decade ago first in the US and then in Europe.  Policy response to the crisis, the combination of fiscal restraint and ultra-easy monetary policy, has not only failed to bring about a robust recovery but has also aggravated systemic problems in the global economy, notably inequality and chronic demand gap, on the one hand, and financial fragility, on the other. (more…)

Statement, April 2017

South Centre Statement to the Ministerial Meeting of the Group of 24

Below is the Statement by the South Centre’s Executive Director Mr. Martin Khor which was distributed during the Ministerial Meeting of the Group of Twenty-four held in Washington DC on 20 April 2017.

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Policy Brief 35, January 2017

On the Existence of Systemic Issues and their Policy Implications

Systemic issues are issues that arise from the built-in features of the global system and the impact of the interaction of its parts; as implied in the chapter title in the Monterrey Consensus, it pertains to the coherence and consistency of the monetary, finance and trade systems.  Systemic issues point at the weak points in the whole global financial “architecture,” the international structures and mechanisms that are beyond the control of individual countries.  Systemic issues are a particular concern to developing countries, which have experienced their greatest development reversals during international payments crises. (more…)

Presentation, October 2016

South Centre Presentation to the Special Event of the Second Committee of the UN General Assembly

UNCTAD organized a special event of the Second Committee of the United Nations General Assembly on 26 October 2016 in New York on “SOVEREIGN DEBT RESTRUCTURINGS: Lessons learned from legislative steps taken by certain countries and other appropriate action to reduce the vulnerability of sovereigns to holdout creditors”. Ms. Yuefen Li, Special Advisor on Economics and Development Finance of the South Centre, spoke as a panelist and alerted the UN Member States of the current legislative challenges facing the sovereigns when it comes to the need for sovereign debt restructuring including the impact of the plurilateral and bilateral trade and investment agreements.

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Book by the South Centre, 2014

Liberalization, Financial Instability and Economic Development

 

Bk_2014_Liberalization, Financial Instability and Economic Development_EN_001About the book: Weighing up the costs and benefits of economic interdependence in a finance-driven world, this book argues that globalization, understood and promoted as absolute freedom for all forms of capital, has been oversold to the Global South, and that the South should be as selective about globalization as the North. The book challenges the orthodoxy on the link between financial deepening and economic growth, as well as that between the efficiency of financial markets and the benefits of liberalization. Ultimately, the author urges developing countries to control capital flows and asset bubbles, preventing financial fragility and crises, and recommends regional policy options for managing capital flows and exchange rates.

Author: Yılmaz Akyüz

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Book by the South Centre, 2012

Financial Crisis and Global Imbalances: A Development Perspective

 

eg2 Akyuz book1

About the book: This book examines – from a standpoint of promoting stability and growth in developing countries – key policy lessons to be drawn from the devastating global economic crisis of 2008-09. In this collection of papers on the 2008-09 Great Recession and its implications, leading economist Yılmaz Akyüz underlines the need for economic restructuring along the above lines with a view to more effective crisis prevention and intervention. Given their vulnerability to shocks and limited capacity to respond, he says, this reform process is an endeavor in which developing economies have a crucial interest.

Author: Yılmaz Akyüz

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