The formal participation of major emerging economies in the rule-making process related to international financial standards is one of the most significant changes in global financial governance since the 2008-2009 crisis. There are two disparate perspectives in the literature on the impact of this change on international financial regulation: the weakening cooperation view, which sees an attenuation of international cooperation due to this change, and the enduring status quo view, which sees the domination of global financial governance by advanced economies persisting even despite it. This paper provides an alternative — and more positive — view of the increased representation of emerging economies in global financial governance related to international financial regulation, by offering a direct and systematic analysis of its effects on the role of emerging economies in the international standard-setting process and on their compliance with these standards, arguing that emerging economies are now meaningful, but still constrained, rule makers.

Part of Series

These papers are an output of a project that aims to promote policy and institutional innovation in global economic governance in two key areas: governance of international monetary and financial relations and international collaboration in financial regulation. With authors from eight countries, the 11 papers in this series add to existing knowledge and offer original recommendations for international policy cooperation and institutional innovation.
  • Hyoung-kyu Chey is associate professor of international political economy at the National Graduate Institute for Policy Studies (GRIPS) in Tokyo.