The need for a new architecture arises because contemporary crises are very different from traditional balance of payments problems. Developing countries are especially vulnerable because of their special characteristics. The emphasis of this report is on crisis prevention, but crisis resolution is also covered. Dr Ahluwalia argues that public resources must be used sparingly and only with strong conditionality. There must be greater incentives to involve the private sector, and mechanisms to ensure that imprudent creditors bear part of the burden. The report also proposes a governance structure involving an overarching ministerial group, including representatives from different groups of developing countries,
which would look at global economic issues including the functioning of private markets and systemic issues. Such a group would go well beyond the newly constituted GX group announced at the Annual Meetings of the IMF and The World Bank.
|Product dimensions:||7.00(w) x 10.00(h) x 0.19(d)|