The international financial architecture - plans for reform

The nature of international financial crises has changed with the considerable increase in the movement of capital. However, the financial crises of the last decade, following the debt crisis of the 1980s, have stimulated the debate on the reforms that ought to be introduced into the international financial architecture and have led to a number of decisions. After a brief review of the institutions responsible for international financial management and an analysis of the recent crises, it becomes apparent that although the efforts to improve supervision, monitoring and transparency serve a purpose, financial innovation will render them inadequate. Likewise, the facilities set up to forestall and manage crises are no doubt unequal to the task and hampered by too many conditions -- incidentally not always justified -- to be effective. Two elements are lacking in the current reflection: an in-depth debate on conditionality, and recognition of the regional dimension. Besides, the debate leaves out of account the fundamental objective which should be that of any international financial system, namely, the funding of development, and that of the poorest countries in particular.