This report distills findings and recommendations from an inclusive, multistakeholder process undertaken by the Global Economy and Development program at the Brookings Institution on reforming the international financial architecture and strengthening the multilateral system.
The first chapter proposes reforms to enhance the legitimacy and efficacy of the International Monetary Fund (IMF) and the World Bank. While reforms may take time, the chapter recommends a 10-point program for immediate action in the interim, including modernizing the boards of directors of the international financial institutions.
The second chapter proposes a market-based solution for private sector debt, emphasizes the need for debt relief to finance climate action, and suggests reforms to scale up climate and development financing, including establishing a Green Bank and a global carbon market.
The third chapter reinforces the critical role the U.N. plays in developing an inclusive tax cooperation forum and a more effective global tax regime. It also encourages the U.N. to pursue a broader tax reform agenda.
The fourth chapter calls for specific reforms to strengthen the global financial safety net at the IMF, focusing on liquidity provision for emerging market and developing economies. Proposed reforms include reforming the IMF quota formula, revamping the role of Special Drawing Rights, and delinking quotas and resource contributions from lending.