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
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:
Our research includes two other work areas: