IDS Bulletin Vol. 30 Nos. 1

Strengthening the Architecture of the Global Financial System:

Published on 1 January 1999

Summary More timely and accurate information on countries’ economic situations – in particular on foreign reserves – is required for proper risk assessment. Capital account liberalisation can bring benefits but needs to be carefully managed. Shortcomings in national prudential regulation and supervision made Asian economies vulnerable. Private entities need to participate in burden sharing to provide incentives for adequate risk evaluation. Bail?outs should only take place to avoid systemic risks and orderly workout procedures are needed in cases of bankruptcy. The IMF and other multilateral institutions played a crucial role managing the crisis. However, they need to improve transparency and should become more involved in international prudential supervision.

Cite this publication

(1999) Strengthening the Architecture of the Global Financial System:. IDS Bulletin 30(1): 50-55

Publication details

published by
Institute of Development Studies


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