Policy Innovations / Financial system reform

Financial system reform

Developing countries are currently losing US$1 trillion dollars annually – 10 times the amount they receive in foreign aid

G20 Transparency, Global Financial Integrity

Tax evasion, fraudulent accounting and illicit money flows all challenge the transparency of a country’s financial system.

Transparency and accountability in the financial sector are vital to prevent corruption and ensure a country’s finances are used for the broader public interest.

While there are a number of initiatives in some areas of financial reform – such as the Jubilee 2000 global campaign to increase transparency in international debt relief – there is little evidence of similar efforts in others. For example, there is scant attention given to the regulation of the credit rating agencies that were at the core of the recent global financial crisis.

Clarity in financial systems and processes

The Transparency and Accountability Initiative (T/A Initiative) examines current work and emerging innovations aimed at improving the transparency of markets and other aspects of the financial sector.

Our research examines the reform and regulation of:

  • The flaws and abuses of the banking system
  • global financial flows, including money laundering, tax havens and payments to governments by extractive industries
  • financing of international development, including debt relief, World Bank funds and International Monetary Fund debt conditions

Expand to read further ↓

By using case studies of reform campaigns from across the world, the research proposes innovative policy initiatives that promise to promote greater transparency and accountability in financial systems. Our research also examines new ideas to help bolster the ability of civil society to work on these issues.

This research is from the T/A Initiative’s Policy Innovations working group which identifies and implements innovative recommendations to improve transparency and accountability in programmes and policies. Their work includes five other areas:

  1. Budget processes
  2. Climate change
  3. Donor aid
  4. Natural resource governance
  5. Open government partnership

Our research includes two other work areas:

  • Read about the Impact and Learning working group and how it reviews the impact of transparency and accountability initiatives worldwide.
  • Read about the New Technologies working group and how it stimulates and advances the wider use of new technologies in the transparency and accountability field