This document is part of the multimedia Global Governance Monitor from the International Institutions and Global Governance (IIGG) program. To view the monitor, visit www.cfr.org/ggmonitor. To learn more about the IIGG program, visit www.cfr.org/iigg.

Implementation, Membership- Framework In Effect? Mandate-Scope Gaps-Weaknesses Compliance, and U.S. Policy Stance Coverage Enforcement

Core Agreements and Arrangements Bretton Woods Yes. World Bank and Promotes global economic System of fixed but Review economic policies of Primary sponsor and Agreement IMF member growth and financial stability, adjustable exchange member countries, including designer of the (including IMF countries. initially through a global fixed but rates ended in 1971. assessment of exchange-rate system, continues to Articles of adjustable system. regimes, as well as financing be largest Agreement) Surveillance has only to support balance-of- contributor to IMF (1944) Created IMF to monitor the rarely produced payment adjustments. and World Bank. exchange-rate regime and the changes in policies. World Bank to provide long-term Countries running The 1971 decision development financing. balance-of-payments to delink the U.S. surpluses and deficits dollar from gold, have resisted rather than tighten changing policies to macroeconomic facilitate global policies, was the adjustment. proximate cause for the end of the system of fixed (but adjustable) exchange rates.

Last Updated: May 27, 2016

IMF – General Yes. Eleven industrial A stand-by borrowing agreement Resources failed to Requests to activate GAB Continues to Arrangements to countries or their that provides back-up credit lines keep pace with credit lines may now only be contribute the Borrow (GAB) central banks to help the IMF respond to growth in financial submitted if a proposal to largest share based (1962) (, , financial crises. The arrangement markets, prompting activate the NAB is rejected on the IMF quota Deutsche enables access to 17 billion (about the 2011 New by NAB members. system. Bundesbank, $27 billion) in Special Drawing Arrangements to , , , Rights. Borrow (NAB). Was activated ten times , before the NAB came into Sveriges Riksbank, Superseded by the 2011 New force. Swiss National Arrangements to Borrow, though Bank, the UK, and GAB remains in force and can be the ). employed in special circumstances.

OECD Yes. 46 countries, Set standards for corporate The guidelines do not Guidelines advisory. Supports voluntary Guidelines for including all 34 governance. offer detailed Participation voluntary. guidelines as an Multinational Organization for prescriptions for instrument that Enterprises Economic Part of OECD Declaration on national legislation. National Contact Points promotes socially (est. 1976) Cooperation and International Investment and (NCP) established by responsible (rev. 2011) Development Multinational Enterprises. governments are charged practices for U.S. (OECD) member with promoting the businesses operating countries and guidelines and handling in foreign countries twelve nonmember enquiries. The OECD countries— publishes annual reports on Argentina, , NCP action globally. Colombia, Costa Rica, Egypt, An Investment Committee Jordan, Latvia, has oversight responsibility. Lithuania, Morocco, Peru, The updated guidelines, Romania, Tunisia. ratified May 2011, included measures to protect human rights and social development.

Plaza Accord No. Group of Five (G5) Encouraged an orderly Sharp depreciation of Not all countries lived up to Reagan (1985) (France, West depreciation of U.S. dollar in U.S. dollar led to fear commitments—for example, administration, led , Japan, relation to and of an uncontrolled the United States did not cut by Treasury United States, UK). German to reduce plunge and the strong its budget deficit. The U.S. Secretary James U.S. current account deficit. rise of the yen became dollar nonetheless fell by 54 Baker, proposed and a challenge for percent against both the supported. Signed on September 22, 1985, at Japanese exporters. Deutsche mark and the yen the Plaza Hotel in New York by from its peak in February five nations—France, West 1985. Germany, Japan, the United States, and the .

Louvre Accord No. Group of Six (G6) Signaled G6 belief the dollar Effectiveness of U.S. dollar appreciated after Chief architect. (1987) (France, West depreciation had gone far enough, intervention in the the agreement. Keen to see an end Germany, Japan, and sought to limit further foreign-exchange to the dollar decline. Canada, United depreciation by intervening in market questioned, States, UK). markets. given the size of the markets.

Then-secretary- general of the OECD Jean-Claude Paye expressed disappointment in countries not following through with commitments to coordinate policies with sufficient vigor and speed.

Basel Accord Yes (Regulates Group of Ten Defined consistent safety and Methods of Standards incorporated in Implemented () banks not (G10) (Belgium, soundness standards for banks calculating risk- national legislation of all framework noting

(1992) following Basel Canada, France, regulated by different countries, weighted capital are members. that terms were II framework). Germany, Italy, primarily through a common rudimentary and consistent with Japan, standard requiring that banks hold subject to gaming. Created expressly for ’s , the a minimum amount of capital. internationally active banks position that Netherlands, Interests in protecting in member countries, but minimum capital Spain, , financial sectors adopted globally as a standards enhance , UK, could conflict with standard for banking overall safety and United States). goals of setting high supervision. soundness of the and consistent banking system. international standards.

Treaty of the Yes. Belgium, Germany, Called for a common European Not all existing EU New applicants must join Historically has Ireland, Greece, currency and a European central members opted to EU currency union. Old supported European (Maastricht Spain, France, Italy, bank by January 1999. Specified a join the currency members had the option of integration, though Treaty) Cyprus, macroeconomic convergence union. joining EU but keeping many were initially (1993) Luxembourg, criterion that countries must national currency. skeptical about Malta, satisfy to access the euro area. The common feasibility of a Netherlands, currency and common European Austria, Portugal, New EU member must join the European Central currency. Slovenia, Slovakia, currency union. Bank were created in Finland, Bulgaria, the absence of a Czech Republic, political union or a Denmark, Estonia, common fiscal policy, Latvia, Lithuania, which contributed to Hungary, , eurozone fiscal crisis Romania, Sweden, while also obstructing UK. progress to resolve the crisis.

Criticized as procyclical and has proven hard to enforce.

OECD No. Open. Promoted liberalization of Civil society groups Negotiations collapsed after Supported MAI. Multilateral investment regimes, with effective argued the initiative France opted out under Agreement on dispute settlement procedures. granted corporations pressure from civil society Investment (MAI) greater leverage and groups. (Proposed 1995, ignored social and never entered into environmental force) concerns.

Stability and Yes. EU countries Intended to ensure that member Relies on public The Growth Pact states maintain budgetary shaming of countries. decides whether a country is (est. 1997) discipline after introduction of Countries have not in breach of the pact, and, (rev. 2005) single currency. been willing to after persistent violations, (rev. 2011) impose fines on can recommend fines to the countries that have Council of European not complied with the Finance Ministers. pact. The financial crisis in Some critics argue the Greece greatly diminished pact is procyclical. confidence in the Stability and Growth Pact, and This has been the increased the perception subject of two that the pact was excessively separate reform lenient toward larger periods (2003–2005 countries at the expense of and 2010–2011). overall eurozone financial and economic stability. Critics are calling for dissolution of the Pact in favor of the Euro Plus Pact and the more strict European Fiscal Compact.

IMF – New Yes. Thirty-eight A stand-by borrowing Emerging economies Credit lines may be activated Helped establish and Arrangements to member states : arrangement that increases credit have criticized use of by the IMF managing supports. Borrow (NAB) Australia, Austria, lines established under the NAB to supplement director after approval by (1998) Banco Central de General Arrangements to Borrow IMF finances, arguing NAB participants and the In 2009, the Obama (rev. 2011) Chile, Bank of (GAB). In times of financial that ordinary (quota) IMF Executive Board. administration Israel, Belgium, contraction when the IMF needs resources should be endorsed Brazil, Canada, to supplement its resources to increased in a way Activated four times. Once, commitment to , Cyprus, provide more capital to nations, that gives emerging to finance a stand-by expand NAB and Denmark’s NAB activation can dispense up to economies more say arrangement for Brazil in proposed increasing National bank, 370.0 billion in special drawing over the IMF. 1998 and in April 2011, to U.S. participation to Deutsche rights (about $565 billion). increase the IMF’s available up to $100 billion. Bundesbank, financing. This was renewed However, these Finland, France, Expanded the 1962 GAB by for a six-month period in increases have not Greece, Hong incorporating funds from October 2011 and again in gone into full effect, Kong Monetary emerging economies. Initiated by April 2012. with current U.S. Authority, Italy, the April 25, 2009, communiqué. contribution at just , Ireland, Commitments from over $28 billion. Japan, Korea individual participants based Kuwait, on relative economic Luxembourg, strength,measured by IMF Malaysia, , quotas. Netherlands, New Zealand, Norway, Activation periods of six Philippines, months replaced the system Portugal, Poland, of activation for specific Russian loans under the GAB. Federation, , Singapore, Spain, , Sveriges Riksbank, Swiss National Bank, Thailand, United Kingdom, United States.

Chiang Mai Yes. Association of Evolved from the Chiang Mai Critics contend that In a May 2012 meeting, the In 2010, U.S. Initiative Southeast Asian Initiative (CMI).Combined the swaps can do little ASEAN+3 country leaders, Department of Multilaterlisation Nations, and complex arrangement of bilateral to alleviate future in order to insulate the Treasury (CMIM) China, Japan, swap arrangements into a “single, crises because the region from global financial Undersecretary for (2010) South Korea uniform facility” to address arrangements are shocks, agreed to double the International Affairs (formerly the (ASEAN+3). shortfalls in liquidity. small, include an opt- CMIM pool to $240 billion Lael Brainard stated Chiang Mai Promotes regional cooperation in out measure, and in bilateral swap [PDF] that "we are Initiative (CMI) four principal areas: monitoring have ambiguous arrangements. supportive of the (2000)) capital flows, regional activation features. way in which the surveillance, swap networks, and Chiang Mai training personnel. Initiative Multilateralization Created an independent regional has evolved—with research office designed to explicit links to the monitor the regional economies. International Monetary Fund."

The U.S. government remains uneasy regarding regional integration that excludes U.S. presence in Asia.

Basel II Capital Yes Countries that Created common capital The Accord weighs Forum for discussing Mandatory only for Accords (Europe and regulate all standards for internationally risk as a function of countries’ application of major, (2008) United States). internationally active banks while avoiding some banks’ internal Basel II provided by the internationally active banks. of the obvious distortions models against those Accord Implementation operating U.S. banks introduced by the initial ofcredit rating Group (AIG), but no (banks with at least More than one framework. Has three pillars: agencies, neither of mandate for uniform or $250 billion in hundred countries minimum capital standards, which predicted the legally-binding application. assets or at least $10 have or will supervisory review, and market 2008 financial crisis. billion in foreign implement Basel II. discipline through public exposure). Smaller

disclosure. banks still covered by Basel I framework.

Basel III banking No, not until Banks of the Increases the tier-one capital Some fear higher Countries have been slow to Endorsed and regulations January 2015, twenty-seven requirement to 7 percent from the capital requirements incorporate Basel III into approved at the (2010) with transition members countries previous 2 percent, and requires will hinder lending national legislation. The EU November 2010 periods for of the Basel banks to hold a 2.5 percent and growth that has taken passive steps and Group of Twenty implementation Committee. "counter-cyclical" buffer during weaker banks may adopted steps that do not (G20) summit in lasting until periods of economic prosperity to not be able to abide meet the Basel III minimum Seoul. 2019. guard against sharp and by the standard, and requirements. The United unexpected downward trends. that it will pave the States has taken steps that way to increasingly meet Basel III, but is moving tougher regulation. slowly toward the 2019 Others see the new deadline that has already rules as too lenient, suffered from two delays. the capital requirements as insufficient to handle future shocks to the banking sector.

European Yes. Seventeen euro Preserved financial stability in Continuous debate Regularly holds three- and Supports EFSF and Financial Stability area member Europe by providing financial aid surrounds the six-month auctions; funds also was in favor of Facility (EFSF) states. to euro area member states by expansion and are initially pooled together increasing EFSF’s (2010) means of loans, bonds, and other capacity of EFSF, before being distributed to lending capacity. forms of debt assistance. The beyond its existing countries upon request. However, the United EFSF is permitted to lend up to three year term. The States refused to bail €440 billion. EFSF’s The EFSF has loaned over out European commitments—and €192 billion, which includes economies in favour lending capacity— disbursements of €18 billion of using the have already been to Ireland, €26 billion to International increased once. Portugal, and €145 billion to Monetary Fund. Greece.

Euro-Plus Pact Yes. Twenty-three Supports the creation of policies Instead of creating The participating countries The United States (2011) countries in the aimed at increasing interregional policies, are taking action at the supports European (initially called European Union. competitiveness, the Pact relies on domestic level meant to action for recovery the fostering employment, member states to take stimulate the European and growth. Competitiveness contributing further to the concrete action aimed economy, including Pact and later sustainability of public finances, at improving their encouraging life-long called A Pact for reinforcing financial stability, and domestic position. learning programs, Europe) reforming tax code. increasing labor force participation, and reworking the pension programs.

Treaty on Yes, entered Twenty-five euro The treaty, also known as the Policy changes with When a new EU country Supports broad Stability, into force in area member European Fiscal Compact, regard to defecit adopts the euro, they will be action with Coordination and March, 2013. states. requires ratifying member states ratios are unlikely to bound by this agreement. President Obama Governance in to enact laws requiring national change in the saying during the the Economic and budgets to be balanced, or has a foreseeable future Unlike other treaties, the ratification process Monetary Union deficit less than 0.5 percent of following the Fiscal Compact is under the that "the United (2012) GDP and debt can not be more financial crisis. purview of the European States stands ready than 60 percent of GDP. A state Court of Justice. to do our part to in violation of the debt or deficit help them resolve limits can be fined by up to 1 this issue." percent of GDP.

European Yes. Nineteen euro area Designed to be a permanent Limited punishment ESM was established and Supports Europe Stability member states. successor to the European or penalty for failure codified by a treaty that was taking necessary Mechanism Financial Stability Facility. to repay. signed by all eurozone steps to preserve the (ESM) (2012) members. euro. Will be used to preserve financial stability in Europe and a However, its very existence guarantor of the euro by providing was challenged, facing legal emergency aid to Eurozone disputes in Estonia, Ireland, members who are in need. and most notably, Germany.

The ESM will have a lending In Germany, the capacity of €700 billion. Constitutional Court granted the Bundestag to withdraw if certain conditions were not met and also limited how much Germany could contribute to the ESM.

The G20 Mutual Yes. All G20 members. Ensures that collective policy Former IMF The IMF provides “technical Former U.S. Assessment efforts are made to benefit all Managing-Director analysis and support” for the Treasury Secretary Process (MAP) members of the G20. Identifies Strauss-Kahn stated MAP. Primarily, the IMF Timothy Geithner in (2009) objectives for the global economy, that as the global analyzes how individual G20 finance creates policies needed to reach economy improves, countries and their minister/central these objectives, and assesses countries will have macroeconomic policies fit bankers meeting in progress made towards these less of an incentive to together, and how these in February goals. aggregate their policies must change in 2011 stated that the macroeconomic order to achieve the G20’s G20 is slowly policies into a global economic goals. making progress common framework. through consensus The IMF seeks assistance and assessing the The IMF explained from the World Bank, the causes of market that “fiscal OECD, ILO, and WTO. A imbalance. He was consolidation” alone G20 Working Group was optimistic that the would not solve created to assist in the G20’s efforts to sustainability issues in development of each stage of achieve its global countries with the MAP. economic goals. advanced economies. “Rebalancing global Updated frameworks have demand” is not been published at every sufficient to address Summit since 2010. G20 the issue of high leaders “commit to adopt all and to necessary policy measures,” sustain global but no formal enforcement economic growth. In mechanism is in place. order for the MAP to be more effective, “stronger efforts” are needed and the ‘base case’ or goals for G20 outcomes, need to be more explicit.

Organizations Bank for Yes. Fifty-eight central Venue for regular consultations Initially started as a Can influence central banks, Supports and grants International banks. among central banks. private organization, but has no authority to status of an Settlements Researches and reports on but is now an enforce recommendations. international (BIS) Some 140 central economic and monetary policy, international organization with (1930) banks and global banking, securities, foreign organization that Meetings of legal immunity. international exchange, and derivatives includes governors and senior financial markets; also collects data on representatives from officials held every two institutions use the cross-border banking. across the globe. months. Other meetings BIS to manage focus on monetary policies, their foreign Houses the Basel Committee on surveillance of international exchange reserves. Banking Supervision, but both are financial markets, and independent of one another. central bank governance issues. Experts’ meetings also held.

World Bank Yes. 188 member states. Promotes economic development Difficult to ensure The World Bank committed Largest shareholder. (1944) in the world’s poorer countries that its loans have $60 billion in loans, grants, through advice, long-term been spent on the guarantees, and other By convention, the lending, and concessional grants. intended project and investments during the 2015 standing U.S. to monitor their Fiscal Year. administration Three main branches: the effectiveness. handpicks the International Bank for Recent governance reforms president of the Reconstruction and Development Debate over whether have increased the voting World Bank, a (IBRD), the International lending rather than power of developing practice now under Development Agency (IDA), and grant aid is the best economies to 47 percent, (a debate. the International Finance way to promote 4.59 percent shift from Corporation (IFC). development. The previous standards) and increase in private- established a twenty-fifth capital flows has led seat on the Board of some to question the Executive Directors for sub- need for World Bank Saharan Africa. lending.

Financial reform does not go far enough to represent emerging economies.

International Yes. 188 member Increased lending capacity within Limited ability to fight Twenty-four-member Largest voting share Monetary Fund states. New Arrangement to Borrow. crises: resources failed executive board oversees (16.68 percent) and (1944) to keep pace with daily functions. Eight are largest contributor to Promotes international monetary growth in private appointed by individual IMF resources. cooperation, exchange rate markets; IMF entered states, and sixteen are Enough votes to stability, and temporary financial current crisis without elected by regional single-handedly assistance facing balance-of- enough funds. constituencies. Board has a block major changes payments problems. weighted voting system: A in IMF policy. Many countries prefer series of 2011 voting share Provides emergency loans—both regional alternatives, reforms increased the voice Has traditionally conditional and unconditional— especially in advance of proportionally sought to maintain

to governments facing financial of crises. underrepresented emerging its predominant crises. economies. position in the IMF. Moral hazard: Has supported Monitors members’ expectations of Members commit to avoid increases in macroeconomic and financial emergency support exchange rate emerging-markets sector policies as well world risk spurring manipulations and to voice, in part because economic and market irresponsible provide economic data. it is currently developments. behavior by underrepresented governments and relative to its share of investors alike. the world economy and thus doesn’t Anachronistic power stand to lose structure: members’ influence in most voting power no reforms. Recently longer reflects their approved reforms to relative economic IMF voting structure, weight. March 2011 which provides reforms attempted to China with third redress these, shifting largest voting share. more than six percent of voting quotas to Has sought, underrepresented according to former countries and over six IMF chief economist percent of quota Michael Mussa, to shares to emerging limit changes that markets and would reduce U.S. developing influence, such as economies. blocking IMF attemptsto issue bonds and raise funds publicly.

United Nations Yes. Fifty-four members Forum for discussing No leverage. Calls for No enforcement Supports ECOSOC Economic and elected for three- international economic and social strengthening mechanism. as a principal organ Social Council year terms by UN issues, and for providing policy ECOSOC have been of the UN, but has

(ECOSOC) General Assembly. recommendations. consistent. Meets each year with generally focused on (1945) finance ministers heading economic key committees of Bretton development. Woods institutions.

Paris Club Yes. Twenty permanent Provides an informal forum at Budgetary Recommendations not Participates actively, (1956) members: which creditor governments meet consequences of debt legally binding. represented by the Australia, Austria, to reschedule payment schedules reduction can delay Department of Belgium, Canada, and in some cases reduce the debt the provision of Members generally Treasury. Denmark, Finland, of debtor countries. An needed debt relief. implement their France, Germany, International Monetary Fund commitments. Ireland, Israel, Italy, program is a prerequisite for Creates bias toward Japan, Netherlands, rescheduling. stretching out Norway, Russian payments even if Federation, Spain, debts are Sweden, unsustainable. Switzerland, UK, and United States.

Chaired by a senior official of the French treasury.

Inter-American Yes. Twenty-six Latin To foster development and Lending questioned In 2015, IDB approved Largest IDB Development American and economic growth in Latin by civil society groups $11.3 billion in loans and shareholder, with 30 Bank Caribbean America. concerned about the guarantees. percent of its voting (IDB) countries and ramifications of weight. Obama (1959) twenty-two The first regional development projects on administration has nonregional organization, founded in response indigenous groups encouraged countries. to Latin American complaints that and the environment. expanding IDB the World Bank was overlooking efforts to help lending in the social and Private financial countries vulnerable agricultural sectors. institutions have to the fallout from argued that IDB the financial crisis. lending competes with private lending.

Bank for Yes. Group of Ten Monitors global financial Absence of emerging Policy recommendations are Supports. International (G10) central bank conditions, analyzes functioning economies raises advisory. Settlements governors, lower- of financial markets over the questions about the Committee on level central bank longer term, makes policy G10’s future the Global officials from other recommendations to improve relevance and doubts Financial System countries invited to market functioning and stability. about its (1960) participate. recommendations. (rev. 1971, 1999)

Organization for Yes. Thirty-two A forum for discussing economic Rarely very critical of No formal enforcement A founding member Economic member states. policy and a think-tank that policies member mechanism. and the largest Cooperation and OECD is monitors, analyzes, and forecasts governments contributor. Development considering global economic trends. Publishes implement. In 2015, major economies (OECD) membership for reports on the economic gave $131.6 billion in aid to (1961) Brazil, China, performance of individual Reports overlap with developing countries. India, Indonesia, countries. those of International and South Africa. Monetary Fund and Promotes best practices for Bank for

economic (and, increasingly, International social and environmental) Settlements. governance, including anti– money laundering, corporate governance, fiscal policy, and so on.

Group of Ten Yes. Eleven industrial Provides a forum for consultation No longer gathers No formal enforcement Active participant. (G10) countries: Belgium, and cooperation among members. world’s major mechanism. (1962) Canada, France, economies. Germany, Italy, The ministers of finance and Japan, Netherlands, central bank governors usually The smaller European Sweden, meet only briefly in connection members tend to be Switzerland, UK, with International Monetary Fund more committed to United States. and World Bank annual meetings. the G10 than the major economies. The central bank governors often meet separately from the finance More of a forum for ministers. central bank governors (and their deputies) than for finance ministries.

African Yes. Fifty-four African Reduce poverty by mobilizing Loans and grant In 2014, the AfDB approved Criticized by GAO Development and twenty-seven resources for Africa’s economic disbursements are $5.05 billion in operations, as solvent but Bank nonregional and social development. lower than those of of which $3.89 billion were vulnerable, the (AfDB) countries. the Inter-American loans and $613.9 million AfDB implemented (1964) Development Bank were grants. modifications, based and Asian on which the United Development Bank. States resumed contributions in A new framework for 1998. improving the AfDB’s aid effectiveness and overall performance was introduced in April 2011. Since then, AfDB has been focused on increasing transparency and encouraging more civil society investment.

Asian Yes Forty-eight Asian Reduce poverty and raise Members of civil In 2011, the ADB provided One of the two Development and nineteen standards of living for developing- society have [PDF] and wholly financed largest shareholders. Bank nonregional country members. questioned the $14.02 billion in operations, (ADB) countries. development bank’s which included (1964) lending policies and $12.61billion in loans and its accountability. $614 million in grants.

Other critics wonder why China and India need to borrow from a development bank (In 2014, India [PDF] and China received the first and second most, respectively, from the ADB.)

International Yes. Fifteen experts of An independent standard-setting The World Bank No legal force. Mandatory two-year Accounting standard-setting board that works to develop a [PDF] cautioned on dual GAAP-IFRS Standards Board and accounting are single set of international financial the need for “full” Releases yearly International reporting period (IASB) members of the reporting standards. compliance with Financial Reporting began for most (1973) board. IASB’s International Standards (IFRSs), companies in 2012, Financial Reporting developed through an with full IFRS Standards (IFRSs), international consultation reporting required given the diverging process and with the by 2014. needs of users, such support of the Standards as small- and Advisory Committee. medium-sized enterprises.

Basel Committee Yes. Central bank Forum for regular information- Emerging markets are No formal supranational Cofounder and on Banking representatives sharing and cooperation on severely supervisory authority. No active participant. Supervision from Argentina, banking supervision. Since the underrepresented. legal force. Relies on (1974) Australia, Belgium, 1980s, has set guidelines and Struggled early on— national implementation. Brazil, Canada, regulatory standards for the and arguably still— Has issued nonbinding

China, France, banking sector. Outreach to with serving in a standards on capital Germany, Hong regulators of non-bank financial banking supervisory adequacy (the Core Kong SAR, India, institutions through the Joint role. Principles for Effective Indonesia, Italy, Forum and the Coordination Banking Supervision) and Japan, Korea, Group (Basel Committee, cross-border banking Luxembourg, ISOCO, IAS, and Joint Forum supervision. Mexico, the officials), which meets on Netherlands, supervisory standards. Has , Saudi produced the Basel Accords. Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States, and observers from the European Banking Authority, the European Central Bank, the European Commission, the Financial Stability Institute and the International Monetary Fund

International Yes. 175 professional Through independent boards, Neither created nor No legal force. U.S. accounting Federation of accountancy works to create international sponsored by national bodies supportive. Accountants organizations in standards on auditing practices, governments. Six areas of activity: auditing (IFAC) 130 countries and ethics, public sector accounting, and related services, (1977) jurisdictions. and accounting education. education, ethics, financial and management Developed IFACnet, a one-stop accounting, information

multilingual tool wth information technology, public sector and resources for accountants. accounting.

International Yes. 207 members. Brings together regulators of An IMF study [PDF] Decisions not legally U.S. Securities and Organization of world’s principal stock exchanges of regulations for binding. Exchange Securities Members, all and promotes common global security Commission has not Commissions government accounting standards for markets found that Recommendations can be adopted the IOSCO (IOSCO) regulators of securities. “full implementation incorporated in national standards, (1983) securities markets, of the IOSCO legislation, like the market apparently are classified into (p)rinciples still reforms found [PDF] in concerned that to do three groups: remains a challenge” Dodd-Frank legislation. so would weaken ordinary, associate, with significant Four task areas: standards of U.S. regulations. and affiliate. weaknesses in many financial market regulation, Twelve additional regulatory systems. information sharing, securities standards for international regulators in a An internal review security transactions, and given jurisdiction [PDF] in 2009 found standards implementation are granted that only 33 percent associate of credit rating membership. Stock agencies have exchanges and implemented the other financial most recent revisions organizations to the IOSCO code. count another seventy affiliate On a state-level, many members. countries—like Indonesia [PDF], Israel [PDF], and Spain [PDF]— are implementing IOSCO principles, but are proceeding slowly.

Financial Action Yes. Thirty-five Promotes legislative and Can only sanction Recommendations advisory. Supports FATF Task Force on member states and regulatory reforms to counter [PDF] member states Implementation voluntary. standards, uses Money two regional money laundering and terrorism and its territories in Requires national legislation recommendations Laundering organizations, the financing. case of weak anti- to implement legally- on money (FATF) Gulf Cooperation money-laundering binding recommendations. laundering and on (1989) Council and Activities led to establishment in and combating- terrorist financing as European several countries of financial financial-terrorism a comprehensive Commission. intelligence units (FIUs) to protect regulations. package to detect financial institutions from and counteract criminal abuse. terrorism.

Bank for Yes. Twenty-five central Monitors and analyzes Does not provide a Recommendations advisory. Federal Reserve has International banks. developments in domestic methodology for Implementation voluntary. supported standards Settlements payment, settlement, and clearing assessment similar to proposed for Committee on systems as well as in cross-border other international Securities Payments and and multicurrency systems. standard-setting Settlements Settlements systems. Systems. Systems Has developed relationships with (CPSS) many non-CPSS central banks to (1990) help strengthen payment systems globally.

European Bank Yes. Sixty-one Fosters development and Concerns include lack In 2012, the EBRD Largest capital for countries, the EU economic growth in eastern of transparency, expanded its operation into subscription of any Reconstruction and European Europe. issues with non-European regions. single country (over and Development Investment Bank. environmental and €3 billion). (EBRD) Has been more involved in social policies as well (1991) private-sector lending than other as concerns about regional multilateral banks and insufficient recipient has regularly sought partners in input into the project financial activity. planning process.

International Yes. More than 200 Encourages supervision and An IMF report [PDF] Decisions not binding. To be Supported by U.S. Association of jurisdictions regulation of insurance suggests that binding, recommendations National Insurance including the companies, sets global insurance observance of IAIS need to be incorporated Association of Supervisors International supervisory standards, helps assessment criteria into national legislation. Insurance (IAIS) Monetary Fund improve cross-sector financial may be officially Commissioners. (1994) and World Bank. supervision, and assists in reported as observed implementing and monitoring “merely because it is Insurance insurance supervisory standards. provided in law. professionals Also provides training and However, in reality it participate as technical support for insurance may not be a general observers. supervision. practice of that jurisdiction.”

European Central Yes. Nineteen euro area Defines euro area’s monetary Critics say it is overly A governing council Supports and has Bank (ECB) member states. policy, prints the euro, and preoccupied with includes the six members of served in an advisory (1998) conducts foreign exchange keeping inflation the ECB executive board role. operations. down, and therefore (appointed by European unwilling to provide Council) and the governors liquidity to eurozone of national central banks of countries and banks, the seventeen eurozone to the detriment of members. the eurozone.

Group of Seven Yes. United States, UK, Provides a forum for consultation Does not gather all of No formal enforcement Active participant (2014), formerly France, Canada, and cooperation among the G8 the world’s major mechanism. but, like others, has Italy, Germany, countries. The heads of state or economies. not delivered on (1998) Japan. Russia was a government meet annually. Countries sometimes have several member of the Was superseded by difficulties living up to their recommendations of Group of Eight. the Group of Twenty commitments. past summits. as the premier economic forum in 2009.

Financial Stability Yes. Group of Twenty Originally the Financial Stability Before In July 2011, the FSB Obama Board (FSB) (G20), Spain, Forum. Created to improve the transformation into developed a set of principles administration (rev. 2009) European flow of information among FSB, FSF did not on compensation in the endorses the FSB’s Commission, and finance ministries, central banks, include many large banking sector and worked enhanced Financial Stability and supervisors from the Group emerging economies. with the Basel Committee responsibilities in Forum members. of Seven (G7) countries and on instituting new banking monitoring and major financial centers in the Recommendations capital requirements and assessing global Since 2001, the emerging world. not legally binding. with the International financial former FSF also Organization of Securities vulnerabilities. held regional Membership recently expanded to Commission on meetings with all G20 members and five standardizing central nonmember nonmembers. clearing for over-the- financial counter derivatives. authorities in Latin Expanded mandate to include America, Asia- collaborating with International Despite internal reports that Pacific, and central Monetary Fund (IMF) for early- indicate [PDF] positive and eastern warning assessment and progress, external reports Europe. identifying action needed to are largely critical of the address vulnerabilities. implementation of global the financial standard.

Because of the weak governance and accountability frameworks, the FSB has struggled with its mission.

Group of Twenty Yes. Finance ministers Provides a forum for consultation Achieving consensus No formal enforcement The Obama (G20) and central bank and cooperation among of the among a wider mechanism. administration has (1999) governors from large industrialized countries and membership can shown a strong twenty economies: major emerging economies. create stalemates in Framework for Strong, commitment to the Argentina, decision-making and Sustainable and Balanced G20 forum and, at Australia, Brazil, Since 1999, central bank implementation. Growth, introduced at the the Pittsburgh

Canada, China, governors and finance ministers 2009 Pittsburgh summit and Summit, called on European Union, have typically met once a year. In Has no standing aimed at rebalancing the leaders to endorse France, Germany, the fall of 2008 and again in the secretariat, leading to global economy, relies upon the G20 as the India, Indonesia, spring of 2009, leaders held a a lack of continuity in a mutual assessment process "premier global Italy, Japan, South summit on the financial crisis. decision-making. by which national economic economic forum," Korea, Mexico, plans of member states are replacing the Group Russia, Saudi evaluated and synchronized of Eight (G8) on Arabia, South for developing a coherent international Africa, Turkey, UK, approach. economic issues. United States.

New Yes. BRICS countries: The bank was created [PDF] to Concerns over the The bank has an initial Concern over Development Brazil, Russia, mobilize and provide resources to bank’s ability to authorized capital of $100 standards of Bank (NDB) India, China, and support development projets in effectively monitor billion. BRICS states paid transparency, (2015) South Africa. BRICS countries, as well as other projects, ensure the first tranche of $750 organization, and developing states. Though the compliance with million to the NDB in procedure. Some NDB is open to membership from loans, and promote January, 2016. analysts view the other states, BRICS countries will transparent lending bank as a challenge retain at least 55% of voting processes. to Western shares. development Potential that instiutions. It will provide loans, equity disagremeents within investments, and assistance to the BRICS countries foster public-private projects. could hamstring the effectiveness of the NDB, especially given the unequal distribution of power within the institution, which is largely dominated by China.

Contingent Yes. BRICS countries: The CRA provides support to Distribution of power Initial committed reserves Reserve Brazil, Russia, member states to respond to and contribution of for the CRA total $100 Arrangement India, China, and shocks in the balance of payments. resources is unequal, billion, with China

(CRA) (2015) South Africa. with China contributing $41 billion, dominating both. $18 billion each from Brazil, Could create tensions Russia, and India, and South in the division of Africa providing $5 billion. resources for projects.

The CRA’s borrowing limit indicates that it may function largely symbolically, rather than replacing the IMF or other arrangements.