Forum on Emerging Issues
Global Financial Governance: Whose Ownership?
Over the past two decades, many
changes that have taken place in
international financial markets have
had an important impact on developing
countries. Because of increased
global integration, what happens to
developing countries is increasingly
important to business in all countries.
This paper discusses the role of
the International Monetary Fund
and the World Bank in dealing with
the consequences of these changes
and attempting to make new rules
for the governance of the international
financial system. It also discusses
the current role of developing countries
in the governance structure of
the international financial system
and the need for their stronger participation.
In the end, the IMF and
the World Bank will not be credible if
they preach good governance and
transparency to developing country
members while shunning the same
advice for themselves. Industrial
countries’ private sector financial
institutions in particular, and their
internationally focused firms in general,
have an important stake in
good governance of the IMF and the
World Bank. Their own rapidly growing international activities will
prosper only if the governance of
these two international institutions is
sound, equitable, and thus engages
all member countries, including
those from the developing world.