Globalization has had a tremendous impact on the world dynamics. As it is here concerned, it has changed the traditional understanding of financial markets and has led to the emergence of multinational banks, financial groups and new instruments that operate across jurisdictions. The problem is that globalization and liberalization of financial markets have proceeded at a much faster pace than the development of an appropriate international legal and institutional framework. So, while the financial crisis was global, the solutions to the problems were in the main national. Therefore, when it comes to modern financial markets, sovereignty is an inadequate principle to deal with financial conglomerates, complex groups and, generally, with cross-border institutions and markets. As a consequence, financial markets need to rely on different levels of governance: for example, the banking union in the EU is a recognition of this need at a regional level. Bsed upon the premise that our times need a new order, the key question at this point is: do we need a world finance organization (WFO)? Times seem ripe for some binding international rules (regulation), efficient supervision or surveillance, and an international system for the resolution of conflicts and crises.
PDFPDFStay tuned for news on sustainable development, environment and climate change, international trade and human rights, Chinese issues and much more!
.png)
