By Bodo Ellmers and Jens Martens
The international financial architecture is in urgent need of reform. In the words of UN Secretary-General António Guterres, it is "outdated, dysfunctional and unjust". The main institutions were created 80 years ago in a transatlantic agreement, at a time when many of the world's nation-states of today were still colonies. Moreover, the institutions have failed in their mission to prevent and mitigate crises and to mobilize sufficient financing for internationally agreed development goals.
The reform of the international financial architecture is currently a major topic on the United Nations agenda, at major events such as the UN Summit of the Future and the Fourth International Conference on Financing for Development. Parallel discussions are taking place in other fora, such as the G20 or the governance bodies of the World Bank and the International Monetary Fund. To inform these processes, independent researchers from academia and civil society have written this new research report. In eight chapters, the authors rethink the financial architecture and make proposals for new foundations, for fundamental reforms towards more legitimate and more effective institutions.