Key Principles for Financial Reforms that G-20 Leaders Should Implement

The authors argue that no fundamental–or global–reforms can be enacted if they do not arise from a process that is inclusive of both industrial and developing countries, and in which both large and small countries have a meaningful voice. In short, representative global institutions–not ad hoc groupings–must be at the center of reform efforts. Why? Any global solutions, whether short-term measures to stabilize the current situation or long-term measures that attempt to prevent future financial meltdowns, must be designed to protect not only the G7 or G20 economies but also emerging markets and, especially, the poor populations of developing nations. Otherwise, global economic stability cannot be restored, and both economic growth and poverty reduction efforts will be derailed.