Database: Governments call to strengthen global financial governance

The Civil Society FfD Mechanism calls for the strengthening of global financial governance through: 1. The establishment of a universal, intergovernmental ECOSOC Commission to regulate Credit Rating Agencies (CRAs), including exploring establishing an international public credit rating agency at the UN 2. A global agreement on the critical importance of capital account management to prevent capital flight, limit speculative trading and arrest declines in currency and asset prices. 3. The establishment of a UN framework to adequately regulate and supervise financial institutions, including non-banking financial institutions and hedge funds.

For more details on this civil society proposal, click here.

The below database tracks recent statements by governments calling for ambitious solutions to strengthen global financial governance.

Group/ Member State	Year	Link	Excerpt
Africa Group	2024	Link to Elements Paper Submission	African countries face high borrowing costs due to biased credit ratings and underdeveloped capital markets. We call for reforms to credit rating systems to ensure they accurately reflect economic conditions in African economies, improving access to private capital markets.
G77 and China	2024	Link to Elements Paper Submission	Enhance transparency and reform of credit ratings agencies to help increase opportunities for developing countries to access long-term private investments and credit flows for sustainable development to have fair credit ratings for all. Reform the credit rating system to ensure accuracy of risk assessment, transparency and encourage investment in the sustainable development priorities of developing countries. Establish an UN-convened technical assistance programme with the aim of providing indicative sovereign credit rating opinions for the member states among the 54 developing countries that do not currently have sovereign ratings.
Pakistan, Egypt, Nigeria	2024	Link to Elements Paper Submission	Revamp the credit rating system by establishing mechanisms under UN auspices for discussing international institutional innovations to ensure transparency in ratings, address conflict of interest, and promoting competition. Such mechanisms could include an ECOSOC intergovernmental commission on the topic, a public credit rating agency or an annual dialogue with credit rating agencies.
Colombia	2024	Link to Elements Paper Submission	We note that credit ratings play an important role in international capital markets as they provide creditors with assessments of a debtor’s relative risk of default. Inaccurate ratings can impact the cost of borrowing and the stability of the international financial system, as demonstrated during the 2008 global financial crisis. Given the wide reach of private credit rating agencies and their decisive role in either facilitating or hampering progress on debt treatment and affecting the cost of borrowing, note that member states may consider the feasibility of establishing public rating agencies.
India	2024	Link to Elements Paper Submission	Global coordination is needed to ensure that the Sovereign Rating Agencies rectify fundamental problems in their rating models, which are necessary for optimal financing for sustainable development in emerging and less developed economies.
Bangladesh	2024	Link to Elements Paper Submission	Additionally, the current credit rating system restricts access to funds for lowincome countries. A comprehensive review of global credit rating system is therefore essential.