World can save reform of International Monetary

The world can save the reform of the International Monetary Fund

Over the past five years
"big twenty" Absolutely not
pay attention to certain issues and
general ill cope with their
Main objective – maintaining stability
the global financial system. Professor
rights at the Institute of Sao Paulo Camilla
Willard Duran believes that the union
no longer able to strengthen the financial
and monetary stability in the world.

The thing is that
G-20 is growing every year
and more topics and issues that need to be
discuss, and, of course, cover all
completely fails. At times when
financial storm is coming, a great
Twenty obliged to stop trying
to solve all the problems at once (it’s just
impossible) and to focus on their
original purpose.

See – the Fed is about to
It dares to raise, she held
almost zero since the
the last crisis. Yes, tougher
monetary policy is necessary,
but it can cause a serious crisis
liquidity in developing countries,
and this is not just the most talked
different experts. And these problems are, in my
all undoubtedly affect the growth
and development of the world economy. That’s why,
According to Kamilly Dyuran, G-20 members
just have to concentrate and
establish a secure base, which would
helped the country survive the coming
hard times. And individually need
strengthen the role of the International Monetary
Fund, making it increasingly perform
its functions and may even hold
Facility within reform. By the way, about this
also recently said Raghuram Rajan,
the head of Central Bank of India – he
I asked to create a sustainable global
financial support network, which
can assist countries in
liquidity crisis.

By the way, the necessary
institutional mechanism is already there –
is the department of special rules
Drawing (SDR) IMF.
Formal structures can exchange
in this department own
IMF international reserve asset to
other currencies. Moreover, even the IMF
may designate some country with
strong balance of payments become
liquidity provider to another
countries. This appointment mechanism
(Designation mechanism), which never
used, is capable of providing
guaranteed access to world currencies
in times of crisis.

And to
turn this department
IMF in full, “the global center
liquidity “, which will soften
future crises, it is necessary just to hold
reform. And ideally – also strengthen the role of
IMF in the global arena. But the problem is,
that the large countries (in particular – the United States)
unwilling to do so, and their policies
actively block appropriate
reform.

However, the countries
it is not necessary to abandon the idea of ​​reform,
that will strengthen the role of the IMF, but it must also
hedge their bets. For example, with
from "coalition of the willing"consisting
from developed and developing countries,
It should work to create
institutional mechanism
It helps to effectively and quickly respond
for the next crisis. The most obvious
option – duplicate structure
SDR Department and to create
a separate agreement between the two countries
this coalition. But there is a great
limitations. The most basic advantage of the Department of the IMF is that the system
It is almost universal and is supported
Governments of the world (thus
Currency exchange on reliable
software – SDR), and it will
lost.

While the crisis threat
Liquidity remains very serious,
fit and not a perfect option – it will confirm the economists. Noted that the international financial
system has become some kind of fragmented? A proof of that –
popular in recent years, bilateral and multilateral
agreements on currency swaps. For example,
Chiang May initiative to unite the country
ASEAN with China, Japan and South Korea.
And the BRICS countries in general have created your own pool
exchange reserves (CRA). such association
to specify in advance the resources (usually –
foreign exchange reserves), which can be
used at the time of the swap.
But there is no guarantee that at the time
crisis, the central bank of any country
really open, as promised, a currency
line without additional political
conditions. For example, the same countries pool
CRA shall have the right to refuse to provide
support and may even require
accelerated return of their funds,
if they have balance of payments problems.

That’s why it is necessary and
IMF to finalize the mechanism to
developing countries were willing to
crisis. It is necessary to approve the management reform
Fund set up this "coalition
volunteers" and begin to develop
effective response mechanism
a crisis.

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