Global Financial Reform.pdf

The G20 Eminent Persons Group on Global Financial Governance was tasked with recommending reforms to the global financial architecture and governance of International Financial Institutions (IFIs) to promote economic stability and sustainable growth. The group's central challenge is to create a cooperative international order for a world that has changed irreversibly, with a more multipolar and decentralized decision-making process, yet more interconnected.

The current system lacks coherence, joint capacity, and effectiveness to support its fundamental goals in global development and financial stability. The group proposes reforms to strengthen and add resilience to global financial governance, including:

Implementing decisive reforms to make the system work as a system
Building trust and transparency among institutions
Leveraging combined strengths to deliver greater development impact and reduce crises
Taking bold and defined steps to ensure institutions work together

The proposed reforms do not require new international bodies but rather bold steps to ensure that existing institutions work together. The group's proposals build on ongoing reforms among IFIs and seek to take them further, with a greater sense of urgency and recognition of the need for consistency and joined-up efforts.

The group's mandate excluded issues related to capital and shareholding structures of IFIs, which are covered by other ongoing reviews. The proposals are guided by the request that they can be acted upon by the G20 and IFIs in coordination with other bodies integral to the international monetary and financial system.

The reforms aim to enable the growth, job opportunities, and sustainability needed in the next decade, and to avert major systemic crises. The group urges that the proposals be considered with an open mind and developed further or adapted if necessary to enable implementation.