Emerging Powers and Global Financial Governance

The traditional mode of governance of national and global monetary and financial markets was obviously too weak and piecemeal to hinder the recurrent outbreak of regional and worldwide crises. The latest and gravest in this series triggered a massive institutional and operational overhaul, achieved both by the creation of new institutions and also by old and new ones being made stronger and more inclusive, foremost by introducing major emerging countries into their steering and oversight bodies. During this endeavour, national and institutional self-interests were initially subdued, but would come out forcefully later. As a consequence, the new edifices for multilateral market regulation and surveillance, as well as its financing, went only as far as the difficult compromise of an enlarged body of players would allow. Therefore, regional solutions or cooperation between like-minded countries were often seen as alternatives to a strong multilateral understanding, but are only able to complement the existing international monetary and financial system.