THE DEBATE ON THE INTERNATIONAL FINANCIAL ARCHITECTURE: REFORMING THE REFORMERS

Abstract

This paper briefly surveys the progress made in various areas of reform of the international financial architecture since the outbreak of the East Asian crisis, and explains the principal technical and political obstacles encountered in carrying out fundamental changes capable of dealing with global and systemic instability. It ends with a brief discussion of what developing countries could do at the global, national or regional level to establish defense mechanisms against financial instability and contagion.