Discounted by many observers only a year ago, the International Financial Instiutions (IFIs) have been bolstered by support of the G20 process. The IMF and World Bank recieved considerable political capital and resources particularly coming out of the London Summit in April 2009.
In this video, Andrew F. Cooper interviews Dr. Domenico Lombardi, president of OXONIA (Oxford Institute for Economic Policy) and a non-resident senior fellow of the Brookings Institution, on the state of the global financial system.
Dr. Lombardi discusses the importance of the G20 as a forum to discuss issues of broad macro-economic relevance in a time of global crisis, and its transformative capabilities. One of the unanticipated aspects of the global economic crisis has been how the IMF has come back as a main player, in terms of its exposure, its projection and most significantly its resources. But, as Dr. Lombardi notes, it’s not simply a question of resources rather the willingness of the G20 leaders to offer their support back to the IMF and the multilateral system.
In his view, the G20 process will not be easily reversed past Pittsburgh. There will likely be another summit announced, and G20 leaders will want to be engaged over the long-term in monitoring progress of reform in the IFIs and their ability to manage stated economic reforms.
Disclaimer: This blog is solely intended to spur discussion, while the opinions expressed are those of the author(s) and do not necessarily reflect the views of CIGI, Chatham House or their respective Boards of Directors.