The current global financial and economic crisis resulted from the failure of major economies and global institutions to recognize and address, in a meaningful way, emerging fault lines in global financial markets and global institutions. The crisis brought to light long-standing weaknesses in the global system for economic and financial cooperation, providing opportunities for reform. No single country has the ability or resources to fix things on its own — a near-unprecedented degree of collective action is required. The agenda for reform to promote greater economic cooperation, including reform of the international financial institutions, has been laid out many times, but the commitment of G20 leaders appears to have faltered, leading this author to suggest that in the event of another crisis, G20 countries would have only themselves to blame.
Strengthening International Financial Institutions to Promote Effective International Cooperation
CIGI Papers No. 13