The role of the international financial institutions in the aftermath of the global financial crisis
Against the background of new developments on international and national financial markets particularly in Emerging Markets as well as the global shocks such as the global financial crisis or climate change this project deals with the future role of the International Financial Institutions (IFIs). The main objective of the project is to assess the work of the IFIs and to provide recommendations for the future design of their instruments and their division of labour regarding long-term development financing, crisis prevention and crisis resolution as well as the financing of global public goods.
Project Lead:
Kathrin Berensmann
Project Team:
Kathrin Berensmann
Ulrich Volz
Peter Wolff
Time frame:
2011 - 2015
/
completed
Project description
Against the background of new developments on international and national financial markets particularly in Emerging Markets as well as the global shocks such as the global financial crisis or climate change this project assesses the future role of the International Financial Institutions (IFIs) and recommendations for the future design of their instruments and their division of labour are made. In general, IFIs take on three tasks:
(1) Long-term term development financing: The IFIs should support national development policies with a strategic long-term vision (agricultural policy, industrial policy, etc.).
(2) Crisis prevention and resolution: For mitigating shocks IFIs should take on a countercyclical role. These roles are complementary and require an adequate division of labour and/or coordination between the IFIs.
(3) Financing of global public goods: The IFIs should provide financial resources in case of market failure; i.e. when public gods are not financed by the market (infrastructure, climate change, etc.).
Events
Managing International Capital Flows for Sustainable Development