Emerging Countries in Global Financial Regulatory Standard Setting: What Is to Be Done?

CIGI Paper No. 228

October 15, 2019

This paper explores the role of emerging-country members in the Basel process, a key aspect of the global financial standard-setting process. It argues that this process has been significantly more politically resilient than adjacent aspects of global economic governance, in part because major emerging countries obtain continuing “intra-club” benefits from participation within it. The most important of these are learning benefits, but status and sometimes influence over standard-setting outcomes can also be valuable. The paper outlines how these benefits could be enhanced to secure the ongoing resilience of global financial regulatory governance. It recommends some modest reforms to further improve the position of emerging countries in the process and to bolster its perceived legitimacy among members and non-member countries.

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About the Author

Andrew Walter is professor of international relations in the School of Social and Political Sciences at the University of Melbourne and a senior fellow in the Melbourne School of Government.