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GOVERNANCE OF GLOBAL FINANCE: TOWARDS INTERNATIONALIZATION OF POLITICAL AUTHORITY |
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Abstract:
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The recent wave of financial crises has led to the formation of an international policy agenda to reform the architecture of the global financial system. This paper discusses the official reform agenda that is being debated and implemented by the international financial institutions and international policy forums of major governments. The reform includes the two major components of the international financial architecture: first, the international institutional mechanisms that make policy decisions; and second, the framework of international rules, regulations and norms that govern global capital markets. The paper argues that the most important aspect of the reform concerning the first component is the better inclusion of major emerging market countries in the international policy-making process on the governance of global finance. This represents a significant attempt by the G-7 to extend interstate consensus formation on the objective of maintaining the liberalized global financial system, and the institutional and policy measures required to strengthen and sustain this system. The defining characteristic of the reform agenda concerning the second component is its exclusion of market-restricting regulations, and the concomitant emphasis on pro-market regulations which seek to reduce instabilities and systemic risks created by enormous cross-border financial flows, and at the same time, aim at facilitating further global integration of capital markets and mobility of capital. The other defining feature is to reinforce market discipline over national governments, and to subject government economic policies to close surveillance by global financial markets. The paper argues that while it is highly doubtful that the new international financial architecture can ensure the stability of the global financial system without instituting some degree of capital controls, its main weakness, however, is political, and lies in the fact that it does not incorporate the principle of social justice. |
Most Common Document Word Stems:
financi (255), intern (223), g (166), market (138), global (117), capit (106), 7 (106), imf (87), polici (85), bank (80), countri (71), system (68), govern (67), financ (64), also (63), reform (62), emc (58), crisi (55), 1999 (51), institut (50), major (49), |
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Keywords: Finance, Governance, International Financial Institutions, Neoliberalism |
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Association:
Name: American Political Science Association URL: http://www.apsanet.org
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Citation:
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MLA Citation:
| Onder, Nilgun. "GOVERNANCE OF GLOBAL FINANCE: TOWARDS INTERNATIONALIZATION OF POLITICAL AUTHORITY" Paper presented at the annual meeting of the American Political Science Association, Boston Marriott Copley Place, Sheraton Boston & Hynes Convention Center, Boston, Massachusetts, Aug 28, 2002 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p65500_index.html> |
APA Citation:
| Onder, N. , 2002-08-28 "GOVERNANCE OF GLOBAL FINANCE: TOWARDS INTERNATIONALIZATION OF POLITICAL AUTHORITY" Paper presented at the annual meeting of the American Political Science Association, Boston Marriott Copley Place, Sheraton Boston & Hynes Convention Center, Boston, Massachusetts Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p65500_index.html |
Publication Type: Conference Paper/Unpublished Manuscript Review Method: Peer Reviewed Abstract: The recent wave of financial crises has led to the formation of an international policy agenda to reform the architecture of the global financial system. This paper discusses the official reform agenda that is being debated and implemented by the international financial institutions and international policy forums of major governments. The reform includes the two major components of the international financial architecture: first, the international institutional mechanisms that make policy decisions; and second, the framework of international rules, regulations and norms that govern global capital markets. The paper argues that the most important aspect of the reform concerning the first component is the better inclusion of major emerging market countries in the international policy-making process on the governance of global finance. This represents a significant attempt by the G-7 to extend interstate consensus formation on the objective of maintaining the liberalized global financial system, and the institutional and policy measures required to strengthen and sustain this system. The defining characteristic of the reform agenda concerning the second component is its exclusion of market-restricting regulations, and the concomitant emphasis on pro-market regulations which seek to reduce instabilities and systemic risks created by enormous cross-border financial flows, and at the same time, aim at facilitating further global integration of capital markets and mobility of capital. The other defining feature is to reinforce market discipline over national governments, and to subject government economic policies to close surveillance by global financial markets. The paper argues that while it is highly doubtful that the new international financial architecture can ensure the stability of the global financial system without instituting some degree of capital controls, its main weakness, however, is political, and lies in the fact that it does not incorporate the principle of social justice. |
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17811 |
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| GOVERNANCE OF GLOBAL FINANCE: TOWARDS INTERNATIONALIZATION OF POLITICAL AUTHORITY Paper prepared for the 98th Annual Meeting of the American Political Science Association Boston MA August 29September 1 2002 Nilgun Onder Ph.D Email: nonder@ccs.carleton.ca Abstract The recent wave of financial crises has led to the formation of an international policy agenda to reform the architecture of the global financial system. This paper discusses the official reform agenda that is being debated and implemented by the international financial institutions and international |
| Geoffrey R. D. (1995) ``Keeping governments out of politics: transnational securieties markets regulatory cooperation and political legitimacy'' Review of International Studies 21 (3). Underhill Geoffrey R. D. (1997) ``Private Markets and Public Responsibility in a Global System: Conflict and Cooperation in Transnational Banking and Securities Regulation''in Geoffrey R. 35 D. Underhill (ed.) The New World Order in International Finance New York: St. Martin's Press. Volcker Paul (2000) ``The Sea of Global Finance'' in Will Hotton and Anthony Giddens (eds.) |
Similar Titles:
The Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets: A Transnational Public-Private Partnership in the Governance of Global Finance
Who Owns Your Debt Matters: Domestic Commercial Bank Buying of Government Debt and Emerging Market Government Policy Autonomy
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