Statement by Aldo Caliari (Centre of Concern) in Round Table D on behalf of the CSO FfD Group and WWG on FfD

The AAAA reaffirmed the need to pursue reforms of the international financial and monetary system contained in Monterrey, Doha (and, by extension of the latter, World Crisis Conference outcomes).

At this fragile time, we are concerned at the slow pace of reforms to plug regulatory gaps that continue to pose risks to financial stability with potential for systemic spillover effects on developing countries at this fragile time. Especially the case for areas of too-big-to-fail and shadow banking.

FFD Forum should play active role in helping consensus-building and advancement of policy proposals on an area where the AAAA demanded action, namely, crucial systemic aspects that at the moment prevent the global financial system from serving people and the planet.

Recent quota and voice reforms at the International Monetary Fund are a step in the right direction but still insufficient to honor FFD outcomes call for broadening the participation of developing countries in international economic decision-making (e.g. a deep revision of the quota formula; majority regimes for passing decisions at Bank/Fund; representation of countries at the Board –at the IMF more than 40 African countries are still represented by only 2 Executive Directors).

The Forum should:

– take steps to evaluate to what extent the IMF’s institutional view on capital flows management measures have helped developing countries deal with risks from large and volatile capital flows,

-assess efforts and obstacles to enhance role of Special Drawing Rights in the international monetary system and utilization as a development financing mechanism,

-examine the impacts of financialization on the vulnerabilities of developing countries, especially commodity-dependent ones,