José Antonio Ocampo
FES International Policy Analysis, August 2014
A reform of the international monetary and financial architecture to protect against future financial crises is under way but with progress still to be made. Reforms focus on regulating financial markets, providing more room for crisis countermeasures by widening official lines of credit, intensifying the coordination of national economic policies, and establishing better structures of global economic governance. However, several shortcomings are still unresolved: these include cross-border capital flows, the absence of a process for sovereign debt restructuring, and an imbalanced global monetary system that puts one-sided obligations on struggling states that impedes their growth. Furthermore, institutional reforms like replacing the G20 with a representative Apex body for global economic coordination are critical steps in the eyes of the author.