Reforming Global Economic and Financial Governance
November 6, 2008
By Raghuram Rajan
The central problem in fostering global economic dialogue is that it is currently a dialogue between the deaf. Industrial countries stopped requiring financing long ago, believe they are responsible global citizens, and guard their policy independence carefully. It seems they view the primary role of multilateral institutions as correcting the policy mistakes and the naked mercantilism of emerging markets, and of course providing aid to the very poor. Emerging markets feel multilateral institutions follow an agenda set by the industrial countries, and don’t see why their own policies should be under scrutiny when industrial countries show scant regard for the multilateral institutions (other than to enforce their bidding). And poor developing countries, beset with their own problems, have little time or interest in a global agenda.