Toward a new design for international financial regulation

University of Pennsylvania Journal of International Economic Law

Volumn 29, Issue 2, 2007, Pages 391-453

  Weber, Rolf H ^a,b   Arner, Douglas W ^c,d  

^a Department of Law ^*

^b UNIVERSITY OF ZURICH   (Switzerland)

^c Asian Institute of International Financial Law   (Hong Kong)

^d UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 40949152539     PISSN: 10867872     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review

References (213)

1. See generally John William Anderson, Jr., Regulatory and Supervisory Independence: Is There a Case for Independent Monetary Authorities in Brazil?, 10 L. & BUS. REV. AM. 253 (2004) (discussing independent regulation of the financial sector).
2. See JAN H. DALHUISEN, DALHUISEN ON INTERNATIONAL COMMERCIAL, FINANCIAL AND TRADE LAW 807 (2000) (outlining problems of capital flow in the European Union).
3. See Anderson, supra note 1, at 253 (discussing a new financial regulation system in Brazil).
4. See Official Statement on Meeting Between the President and Prime Minister Churchill (Aug. 14, 1941), in 10 THE PUBLIC PAPERS AND ADDRESSES OF FRANKLIN D. ROOSEVELT 314 (Samuel I. Rosenman ed., 1950).
5. See generally 1-2 PROCEEDINGS AND DOCUMENTS OF THE UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE (1948) (documenting the proceedings of the conference held in Bretton Woods, New Hampshire, July 1-22, 1944).
6. See JOHN H. JACKSON, THE JURISPRUDENCE OF GATT AND THE WTO 21-23 (2000) (outlining the relationship between the ITO and GATT).
7. See generally Mario Giovanoli, A New Architecture for the Global Financial Market: Legal Aspects of International Financial Standard Setting, in INTERNATIONAL MONETARY LAW: ISSUES FOR THE NEW MILLENNIUM 3 (Mario Giovanoli ed., 2000) (outlining legal standards for international financial markets);
8. Joseph J. Norton, "Qualified Self-Regulation" in the New International Financial Architecture, J. INT'L BANKING REG., Jul. 2000, at 9 (discussing an evolving partnership between banking authorities and banking institutions);
9. Rolf H. Weber, Challenges for the New Financial Architecture, 31 H.K. L.J. 241 (2001) (giving suggestions on how to use the "new financial architecture").
10. Michael D. Bordo, The Bretton Woods International Monetary System: A Historical Overview, in A RETROSPECTIVE ON THE BRETTON WOODS SYSTEM: LESSONS FOR INTERNATIONAL MONETARY REFORM 3 (Michael D. Bordo & Barry Eichengreen eds., 1993).
11. Under the Bretton Woods international monetary system, the U.S. dollar was fixed to gold at $32 per ounce. All other currencies were then fixed in value to the U.S. dollar.
12. The result gave an important economic benefit to the Unites States: the U.S. dollar became the world's reserve currency (along with gold) and the backbone of international finance and trade, rather rapidly replacing the British pound sterling, which fulfilled similar roles in the pre-war period of globalization (1870- 1914).
13. By 1944, due to economic nationalism and the needs and results of war, the system of free trade which had existed in the 1870-1914 period had been completely destroyed.
14. But see ANDREAS F. LOWENFELD, INTERNATIONAL ECONOMIC LAW 525-27 (2002) (discussing some instances in which nations did not adhere to the fixed exchange rate system).
15. This was especially true as the economic importance of Germany and Japan increased and that of the United Kingdom decreased.
16. The IMF Articles were adopted at the United Nations Monetary and Financial Conference, held in Bretton Woods, New Hampshire on Jul. 22, 1944, and entered into force Dec. 27, 1945. They have subsequently been amended three times: (1) Board of Governors Resolution No. 23-5, adopted May 31, 1968, and effective Jul. 28, 1969; (2) Board of Governors Resolution No. 31-4, adopted Apr. 30, 1976, and amended effective Nov. 11, 1992; and (3) Board of Governors Resolution No. 45-3, adopted Jun. 28,1990, and effective Nov. 11, 1992.
17. See Paul Krugman, Dutch Tulips and Emerging Markets, FOREIGN AFF., July-Aug. 1995, at 28 (discussing emerging free markets in the early 1990s). Krugman describes the so-called "Washington Consensus" regarding economic policies that developed in the early 1990s as: liberalizing trade, privatizing state enterprises, balancing the budget, and pegging the exchange rate. Having done these things, one will have laid the foundations for an economic takeoff; find a country that has done these things, and there one may confidently expect to realize high returns on investments. Id. at 29.
18. See generally LATIN AMERICAN ADJUSTMENT: HOW MUCH HAS HAPPENED? (John Williamson ed., 1990) (discussing adjustments made with respect to Latin American countries' debts); WORLD BANK, WORLD DEVELOPMENT REPORT 1991: THE CHALLENGE OF DEVELOPMENT (1991);
19. Stanley Fischer, ABCDE: Past Ten Years, Next Ten Years, in IMF ESSAYS FROM A TIME OF CRISIS: THE INTERNATIONAL FINANCIAL SYSTEM, STABILIZATION AND DEVELOPMENT 487 (Stanley Fischer ed., 2004).
20. See IDA Home Page, http://www.worldbank.org/ida (last visited Dec. 12, 2007) (giving general information on the IDA).
21. See IFC Home Page, http://www.ifc.org (last visited Dec. 12, 2007) (giving general information on the IFC); MIGA Home Page, http://www.miga.org (last visited Dec. 12, 2007) (giving general information on MIGA).
22. In addition, it also serves as a host for the International Centre for Settlement of Investment Disputes ("ICSID"), founded in 1966. Along with MIGA, ICSID supports the development of international investment.
23. See What Is The WTO?, http://www.wto.org/english/thewto_e/ whatis_e/whatis_e.htm (last visited Dec. 12, 2007) (discussing the formation and structure of the WTO).
24. See JOSEPH E. STIGLITZ, GLOBALIZATION AND ITS DISCONTENTS (2002) (discussing problems with cooperation between the IMF and the World Bank); see also Allan H. Meltzer, The Report of the International Financial Institution Advisory Commission: Comments on the Critics, in THE IMF AND ITS CRITICS: REFORM OF GLOBAL FINANCIAL ARCHITECTURE 106 (David Vines & Christopher L. Gilbert eds., 2004) (discussing the Meltzer Commission's report to Congress and the need for greater reform of the international financial institutions).
25. See Takashi Kiuchi, The Asian Crisis and Its Implications, in SHAPING A NEW INTERNATIONAL FINANCIAL SYSTEM 37 (Karl Kaiser et al. eds., 2000) (discussing the Asian financial crisis).
26. See Zanny Minton-Beddoes, Why the IMF Needs Reform, FOREIGN AFF., May-June 1995, at 123 (suggesting that the IMF overreached its capacity, not because of the United States' influence on IMF policies, but rather because of its desire for new relevance in a world economy now characterized by instability and private power); see also Robert Chote, Mexico 'Showed IMF Flaws,' FIN. TIMES, Apr. 25, 1995, at 4 (discussing the IMF's flaws as shown by the Mexican financial crisis).
27. See George Graham, $50bn Mexico Aid Plan 'Averted a Global Crisis,' FIN. TIMES, Feb. 3, 1995, at 16. (noting that the IMF's contribution to support Mexico has been estimated at almost one-fifth of the IMF's liquid resources and seven times Mexico's quota); see also Francois Gianviti, The IMF and the Liberalization of Capital Markets, 19 HOUS. J. INT'L. 773, 777 (1997) (presenting methods of preventing liquidity crises); Editorial, Perspective on a Panic, FIN. TIMES, Feb. 11, 1995, at 8 (cautioning against overreaction to Mexico's financial troubles).
28. See generally STEPHAN HAGGARD, THE POLITICAL ECONOMY OF THE ASIAN FINANCIAL CRISIS (2000) (giving a broad overview of the Asian financial crisis).
29. See generally G-7, Halifax Summit Communiqué, June 16, 1995, available at http://www.g7.utoronto.ca/summit/1995halifax/ communique/index.html (providing the general results and findings of the summit).
30. See GROUP OF TEN, THE RESOLUTION OF SOVEREIGN LIQUIDITY CRISES: A REPORT TO THE MINISTERS AND GOVERNORS PREPARED UNDER THE AUSPICES OF THE DEPUTIES (1996), available at http://www.bis.org/publ/gten03.pdf (discussing how to resolve foreign financial crises).
31. See id. para 2.
32. Id.
33. Id.
34. See Weber, supra note 7, at 250 (arguing that the international financial infrastructure needs to be improved to best benefit all participants).
35. See generally DOUGLAS W. ARNER, FINANCIAL STABILITY, ECONOMIC GROWTH, AND THE ROLE OF LAW (2007) (examining the reasons for financial market globalization).
36. This process has changed dramatically the risks and parties involved in both international and domestic finance.
37. See BARRY EICHENGREEN, TOWARD A NEW INTERNATIONAL FINANCIAL ARCHITECTURE: A PRACTICAL POST-ASIA AGENDA 133 (1999) (discussing how economists understand crises).
38. See ARNER, supra note 30, at 64 (discussing characteristics of today's financial markets).
39. Michel Camdessus, Managing Dir., Int'l Monetary Fund, The Role of the IMF: Past, Present, and Future, Remarks at the Annual Meeting of the Bretton Woods Committee (Feb. 13, 1998), available at https://www.imf.org/ external/np/speeches/1998/021398.htm (discussing recent and ongoing activities of the IMF).
40. In this regard, the IMF developed the Special Data Dissemination Standard and the General Data Dissemination Standard, and promoted disclosure through its programs and policy advice.
41. Crisis resolution and workout issues are beyond the scope of the present Article. For more detailed discussion, see ARNER, supra note 30, at 303-19.
42. Michel Camdessus, Managing Dir., Int'l Monetary Fund, Reflections on the Crisis in Asia, Address to the Extraordinary Ministerial Meeting of the Group of 24 (Feb. 7, 1998), available at http://www.imf.org/external/np/speeches/ 1998/020798.htm (discussing possible solutions to the Asian financial crisis).
43. Stanley Fischer, First Deputy Managing Dir., Int'l Monetary Fund, How to Avoid International Financial Crises and the Role of the International Monetary Fund, 15th Annual Cato Institute Monetary Conference (Oct. 14, 1997), available at http://www.imf.org/external/np/speeches/1997/101497.htm [hereinafter How to Avoid Crises] (discussing how the IMF works to prevent financial crises).
44. See also Stanley Fischer, The IMF and the Asian Crisis, in IMF ESSAYS FROM A TIME OF CRISIS: THE INTERNATIONAL FINANCIAL SYSTEM, STABILIZATION, AND DEVELOPMENT 93 (2004) (citing "macroeconomic balance and a strong and well-supervised financial system" as prerequisites for liberalizing capital accounts to prevent crises).
45. Multilateral regional development banks include the Inter-American Development Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, and Islamic Development Bank.
46. Sven Sandström, Managing Dir. of the World Bank Group, The East Asia Crisis and the Role of the World Bank, Statement to the Bretton Woods Committee, paras. 5-6, (Feb. 13, 1998), available at http://go.worldbank. org/QJMS1KWNI1 (discussing the World Bank's relationship to the IMF).
47. See How to Avoid Crises, supra note 38.
48. See Barry Eichengreen, Financial Instability, in GLOBAL CRISES, GLOBAL SOLUTIONS 251, 254 (Bjørn Lomborg ed., 2004) (describing potential costs of excessive volatility as decreased value of collateral, bank failures, cancelled investment projects, and an overall drop in output).
49. See Rudiger Dornbusch, A Primer on Emerging Market Crises 2 (Nat'l Bureau of Econ. Research, Working Paper No. W8236, June 2001), available at http://econ-www.mit.edu/faculty/dornbusch/download.php?ids=7 (calling balance sheet issues "fundamentally linked" to mismatches in regards to financial crises).
50. See Ross H. McLeod, Lessons from Indonesia's Crisis, in CAPITAL FLOWS WITHOUT CRISIS? RECONCILING CAPITAL MOBILITY AND ECONOMIC STABILITY 199, 209-11 (Dipak Dasgupta, Marc Uzan & Dominic Wilson, eds. 2001) (detailing the specifics of Indonesia's banking crisis and the negative impact of large capital withdrawals made by depositors who had lost confidence in the banks).
51. See Eduardo Levy-Yeyati, Maria Soledad Martinez Peria & Sergio L. Schmukler, Market Discipline under Systematic Risk: Evidence from Bank Runs in Emerging Economies 7-9 (World Bank Policy Research, Working Paper No. 3440, 2004), available at http://papers.ssrn.com/sol3/papers.cfm? abstract_id=625318 (citing the devaluation of the Brazilian dollar as a major factor in the Argentinean currency crisis).
52. See INT'L MONETARY FUND, EXCHANGE RATE VOLATILITY AND TRADE FLOWS: SOME NEW EVIDENCE 8 (2004) (prepared by Peter Clark, Natalia Tamirisa & Shang-Jin Wei), available at www.imf.org/external/np/res/exrate/2004/eng/051904.pdf (finding currency crises in emerging markets to be "notable cases of large exchange rate volatility"). Another differentiation is chosen by Frankel, who cites differing inflation crises, securities market crises, international crises, global recession, and illiberal economic policies. Jeffrey A. Frankel, Responding to Financial Crises (Harv. U. Kennedy Sch. of Gov't, Working Paper No. RWP07-010, Feb. 2007), available at http://ssrn.com/abstract= 963133.
53. See Douglas Arner, The Mexican Peso Crisis: Implications for the Regulation of Financial Markets, 2 NAFTA L. & BUS. REV. AM., Fall 1996, at 28, 38 (describing the international response to the Mexican peso crisis).
54. See WORKING PARTY ON FIN. STABILITY IN EMERGING MARKET ECONOMIES, FINANCIAL STABILITY IN EMERGING MARKET ECONOMIES: A STRATEGY FOR THE FORMULATION, ADOPTION AND IMPLEMENTATION OF SOUND PRINCIPLES AND PRACTICES TO STRENGTHEN FINANCIAL SYSTEMS (1997), available at http://www.bis.org/publ/gten02.pdf [hereinafter G-10 STRATEGY (1997)] (discussing how to maintain strong financial markets). This framework was developed further by the Group of 22 Systemically Significant Countries. WORKING GROUPS ON TRANSPARENCY AND ACCOUNTABILITY, STRENGTHENING FIN. INST., AND INT'L FIN. CRISES, SUMMARY OF REPORTS ON THE INTERNATIONAL FINANCIAL ARCHITECTURE 11 (1998), available at http://www.bis.org/publ/othp01a.pdf [hereinafter WORKING GROUPS] (discussing a method for strengthening financial markets).
55. See supra notes 24-28 and accompanying text.
56. See WORKING GROUPS, supra note 48, at 1 (discussing general effects of financial crises).
57. See WORKING GROUP ON STRENGTHENING FINANCIAL SYSTEMS, REPORT OF THE WORKING GROUP ON STRENGTHENING FINANCIAL SYSTEMS 3-4 (1998), available at http://www.bis.org/publ/othp01c.pdf (discussing elements of a robust financial system).
58. See Udaibir Das, Marc Quintyn & Kina Chenard, Does Regulatory Governance Matter for Financial System Stability? An Empirical Analysis 5-6 (Int'l Monetary Fund, Working Paper WP/04/89, May 2004) (discussing problems with defining financial stability). As a result "financial system soundness" is used instead of "financial stability."
59. See Garry J. Schinasi, Responsibility of Central Banks for Stability in Financial Markets (Int'l Monetary Fund, Working Paper WP/03/121, June 2003) (discussing the controversy over defining financial stability). For further discussion concerning the definition of financial stability, see Andrew Crockett, The Theory and Practice of Financial Stability, GLOBAL ECON. INST. NEWSL. 6 (Centre for Econ. Policy Research, London, Eng.), Aug. 1997;
60. David S. Bieri, The Basel Process and Financial Stability (Soc. Sci. Research Network, Working Paper, 2004), available at http://ssrn.com/abstract=616723.
61. Schinasi, supra note 53, at 4 (providing a general, working definition of financial stability).
62. Marc Quintyn & Michael W. Taylor, Regulatory and Supervisory Independence and Financial Stability 8 (Int'l Monetary Fund, Working Paper WP/02/46, Mar. 2002) (emphasis removed).
63. See G-10 STRATEGY (1997), supra note 48, at 49 (discussing the new global stability strategy and the principles on which it should be based).
64. This essential structure was affirmed by the G-7 Finance Ministers in the Communiqué from their Köln summit in 1999. See G-7 Finance Ministers, Report of the G7 Finance Ministers to the Köln Economic Summit (Jun. 18-20, 1999), available at http://www.g8.utoronto.ca/ finance/fm061999.htm.
65. See The Financial Stability Forum, http://www.fsforum.org (last visited Dec. 12, 2007) (describing the creation, purpose, and work of the Financial Stability Forum).
66. See David Zaring, International Law by Other Means: The Twilight Existence of International Financial Regulatory Organizations, 33 TEX. INT'L L.J. 281 (1998) (analyzing the regulatory cooperation of international financial organizations in order to illustrate the development of international rules).
67. The G-7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The Group of Eight ("G-8") includes Russia in addition to the G-7 members. The European Union is also a member of both the G-7 and the G-8. For the best resource on the G-7 and G-8, see G8 Information Centre, http://www.g7.utoronto.ca/ (last visited Dec. 12, 2007).
68. The G-10 includes Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States. Therefore, it actually includes thirteen countries.
69. The G-20 includes the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States. It also includes the European Union (Council President) and the European Central Bank ("ECB"), as well as (on an ex officio basis) the Managing Director of the IMF, the President of the World Bank, and the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank.
70. National authorities include the G-7, plus the ECB, plus five economies: Australia, Canada, France, Germany, Hong Kong, Italy, Japan, Netherlands, Singapore, Switzerland, the United Kingdom, the United States, and the ECB.
71. International financial institution members include the BIS, the IMF, and the World Bank.
72. International organization members include the OECD.
73. International financial organization members include the Basel Committee on Banking Supervision, the IAIS, and IOSCO.
74. Committees of central bank experts that are members include the Committee on the Global Financial System ("CGFS") and the Committee on Payment and Settlement Systems ("CPSS").
75. Some of the key standards are relevant for more than one policy area. For example, sections of the Code of Good Practices on Transparency in Monetary and Financial Policies have relevance for aspects of payment and settlement as well as for financial regulation and supervision.
76. THE FINANCIAL STABILITY FORUM, 12 KEY STANDARDS FOR SOUND FINANCIAL SYSTEMS (2006), http://www.fsforum.org/compendium/ key_standards_for_sound_financial_system.html (listing the twelve key standards areas that are essential to developing and maintaining a sound financial system).
77. The international financial institutions include the IMF, the World Bank, and the BIS.
78. At present, this includes the OECD. At present, the WTO is not officially represented.
79. Regulators include the Basel Committee, IAIS, and IOSCO. The Financial Action Task Force can also be included in this category.
80. Central banks operating in this arena include CPSS and CGFS.
81. These include the International Accounting Standards Board ("IASB") and the International Federation of Accountants.
82. Market associations include the International Swaps and Derivatives Association, the International Capital Markets Association, and the Loan Market Association.
83. Expert groups include the Institute of International Finance, the Group of Thirty, the Institute for International Economics, and a plethora of domestic and academic research and policy institutes.
84. Legal groups include the International Law Association, the International Bar Association, the U.N. Commission on International Trade Law ("UNCITRAL"), the International Institute for the Unification of Private Law ("UNIDROIT"), the Hague Conference on Private International Law, and the Council of Europe.
85. See FINANCIAL STABILITY FORUM, supra note 69 (designating twelve key standards for sound financial systems which are "broadly accepted as representing minimum requirements for good practice").
86. See supra Section 3.3.2.
87. Chiefly, the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, and Inter-American Development Bank are playing this role.
88. This primarily pertains to the European Union, the Association of Southeast Asian Nations ("ASEAN"), Mercosur, the North American Free Trade Agreement ("NAFTA"), and the Southern African Development Community.
89. INT'L MONETARY FUND, IMF EXECUTIVE BOARD REVIEWS INTERNATIONAL STANDARDS: STRENGTHENING SURVEILLANCE, DOMESTIC INSTITUTIONS, AND INTERNATIONAL MARKETS, IMF PUBLIC INFORMATION NOTICE NO. 03/43 (Apr. 3, 2003), http://www.imf.org/external/np/sec/pn/2003/pn0343.htm.
90. INT'L MONETARY FUND & WORLD BANK, INTERNATIONAL STANDARDS: STRENGTHENING SURVEILLANCE, DOMESTIC INSTITUTIONS, AND INTERNATIONAL MARKETS 6 (2003), available at http://www.imf.org/external/np/pdr/sac/2003/030503.pdf.
91. Id.
92. Int'l Monetary Fund, General Data Dissemination System, http://dsbb.imf.org/Applications/web/getpage/?pagename=gddshome; Int'l Monetary Fund, Special Data Dissemination Standard, http://dsbb.imf.org/Applications/web/ sddshome.
93. INT'L MONETARY FUND, CODE OF GOOD PRACTICES ON FISCAL TRANSPARENCY (2007), available at http://www.imf.org/external/ np/pp/2007/eng/051507c.pdf.
94. INT'L MONETARY FUND, CODE OF GOOD PRACTICES ON TRANSPARENCY IN MONETARY AND FINANCIAL POLICIES: DECLARATION OF PRINCIPLES (1999), available at http://www.imf.org/external/np/mae/mft/code/eng/code2e.pdf.
95. BASEL COMM. ON BANKING SUPERVISION, BANK FOR INT'L SETTLEMENTS, CORE PRINCIPLES OF EFFECTIVE BANKING SUPERVISION (2006), available at http://www.bis.org/publ/bcbs129.pdf.
96. INT'L ORG. OF SEC. COMM'NS, OBJECTIVES AND PRINCIPLES OF SECURITIES REGULATION (2003), available at http://www.iosco.org/library/pubdocs/pdf/IOSCOPD154.pdf.
97. INT'L ASS'N. OF INS. SUPERVISORS, INSURANCE CORE PRINCIPLES AND METHODOLOGY (2003), available at http://www.iaisweb.org/view/element_href.cfm?src=1/94.pdf.
98. COMM. ON PAYMENT AND SETTLEMENT SYS., BANK FOR INT'L SETTLEMENTS, CORE PRINCIPLES FOR SYSTEMICALLY IMPORTANT PAYMENT SYSTEMS (2001), available at www.bis.org/publ/cpss43.pdf; TECHNICAL COMM. OF THE INT'L ORG. OF SEC. COMM'NS, BANK FOR INT'L SETTLEMENTS, RECOMMENDATIONS FOR SECURITIES SETTLEMENT SYSTEMS (2001), available at http://www.bis.org/publ/ cpss46.pdf.
99. FIN. ACTION TASK FORCE ON MONEY LAUNDERING, THE FORTY RECOMMENDATIONS (2003), available at http://www.fatf-gafi.org/ dataoecd/7/40/34849567.pdf; FIN. ACTION TASK FORCE ON MONEY LAUNDERING, SPECIAL RECOMMENDATIONS ON TERRORIST FINANCING (2001), available at http://www.fatf-gafi.org/dataoecd/55/16/34266142. pdf.
100. ORG. FOR ECON. COOP. & DEV., OECD PRINCIPLES OF CORPORATE GOVERNANCE (2004), available at http://www.oecd.org/dataoecd/32/ 18/31557724.pdf.
101. INT'L ACCOUNTING STANDARDS BD., INTERNATIONAL FINANCIAL REPORTING STANDARDS (2007).
102. INT'L FED. OF ACCOUNTANTS, HANDBOOK OF INTERNATIONAL AUDITING, ASSURANCE, AND ETHICS PRONOUNCEMENTS (2007), available at http://www.ifac.org/Members/Downloads/2007_IAASB_Handbook. pdf.
103. U.N. COMM'N ON INT'L TRADE LAW, LEGISLATIVE GUIDE ON INSOLVENCY LAW (2005), available at http://www.uncitral.org/pdf/english/texts/insolven/05-80722_Ebook.pdf; WORLD BANK, PRINCIPLES AND GUIDELINES FOR EFFECTIVE INSOLVENCY AND CREDITOR RIGHTS SYSTEMS (2001), available at http://www.worldbank.org/ifa/ipg_eng.pdf. At present, the IMF, the World Bank, and UNCITRAL are cooperating to produce a single standard, but no agreement has yet been reached.
104. INT'L MONETARY FUND & WORLD BANK, supra note 83, at 9-11.
105. INT'L MONETARY FUND, supra note 82.
106. See FIRST Initiative, Strengthening Financial Sectors, http://www.firstinitiative.org (last visited Dec. 12, 2007) ("providing technical assistance (TA) to promote financial sector strengthening").
107. INT'L MONETARY FUND, INTERNATIONAL STANDARDS: BACKGROUND PAPER ON STRENGTHENING SURVEILLANCE, DOMESTIC INSTITUTIONS, AND INTERNATIONAL MARKETS 19 (2003), available at http://www.imf.org/external/np/pdr/sac/2003/ 030503s1.pdf.
108. These economies include: Albania, Algeria, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Cameroon, Canada, Chad, Chile, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Estonia, Euro Area, Fiji, Finland, France, FYROM, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Honduras, Hong Kong SAR, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Madagascar, Malawi, Mali, Malta, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Morocco, Mozambique, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Norway, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Russia, Rwanda, Samoa, Saudi Arabia, Senegal, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, St. Kitts and Nevis, St. Vincent and the Grenadines, Sweden, Switzerland, Tajikistan, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, the United Kingdom, the United States, Uruguay, and Zambia. See Int'l Monetary Fund, Reports on the Observance of Standards and Codes (ROSCs), http://www.imf.org/external/np/rosc/ rosc.asp (last visited Dec. 12, 2007) (summarizing "the extent to which countries observe certain internationally recognized standards and codes"). Some ROSCs were also published as part of FSSAs.
109. INT'L MONETARY FUND, supra note 100, at 6.
110. INT'L MONETARY FUND & WORLD BANK, FINANCIAL SECTOR ASSESSMENT PROGRAM: REVIEW, LESSONS, AND ISSUES GOING FORWARD 5 (2003), available at http://www.imf.org/external/np/fsap/2003/review.pdf.
111. Id. at 4.
112. INT'L MONETARY FUND, IMF REVIEWS EXPERIENCE WITH THE FINANCIAL SECTOR ASSESSMENT PROGRAM AND REACHES CONCLUSIONS ON ISSUES GOING FORWARD, IMF PUBLIC INFORMATION NOTICE NO. 03/46 (Apr. 4, 2003), http://www.imf.org/external/np/sec/pn/2003/ pn0346.htm.
113. Id.
114. See INT'L MONETARY FUND, IMF REVIEWS EXPERIENCE WITH THE FINANCIAL SECTOR ASSESSMENT PROGRAM (FSAP) AND REACHES CONCLUSIONS ON ISSUES GOING FORWARD, IMF PUBLIC INFORMATION NOTICE NO. 01/11 (Feb. 5, 2001), http://www.imf.org/external/ np/sec/pn/2001/pn0111.htm (noting the Board's observances); INT'L MONETARY FUND & WORLD BANK, supra note 103 (utilizing the past FSAP reviews to suggest strategies and tools for moving forward with FSAP more thoroughly and effectively).
115. INT'L MONETARY FUND & WORLD BANK, supra note 103, at 8.
116. Id. at 11-12.
117. INT'L MONETARY FUND, supra note 105.
118. INT'L MONETARY FUND & WORLD BANK, supra note 103, at 18.
119. See INT'L MONETARY FUND & WORLD BANK, ANALYTICAL TOOLS OF THE FSAP (2003), available at http://www.imf.org/external/np/fsap/2003/022403a. pdf, for a discussion on the tools used in assessing the effectiveness of the FSAP.
120. See OWEN EVANS ET AL., INT'L MONETARY FUND, MACROPRUDENTIAL INDICATORS OF FINANCIAL SYSTEM SOUNDNESS, OCCASIONAL PAPER NO. 192 (April 2000), available at http://www.imf.org/external/pubs/ft/op/192/OP192.pdf (surveying current knowledge in the area of macroprudential indicators and suggesting their use for the effective monitoring of financial systems); MONETARY & EXCH. AFFAIRS DEP'T & STATISTICS DEP'T, INT'L MONETARY FUND, FINANCIAL SOUNDNESS INDICATORS: POLICY PAPER (2001), available at http://www.imf.org/ external/np/mae/fsi/2001/eng/pp.pdf (discussing the need for a means to monitor risks and vulnerabilities in financial systems and the utilization of financial soundness indicators as a solution to that need).
121. INT'L MONETARY FUND & WORLD BANK, supra note 103, at 25.
122. These are not published. Prior to March 2003, FSAP teams prepared more lengthy FSAP reports.
123. INT'L MONETARY FUND & WORLD BANK, supra note 111, at 23-25.
124. See Int'l Monetary Fund, Financial Sector Assessment Program (FSAP), http://www.imf.org/external/np/fsap/fsap.asp (last visited Dec. 12, 2007) for a collection of the Financial System Stability Assessment country reports pertaining to the following economies: Albania, Algeria, Australia, Austria, Bahrain, Barbados, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Chile, Colombia, Costa Rica, Croatia, Czech Republic, Denmark, Finland, France, FYROM, Gabon, Georgia, Germany, Ghana, Greece, Hong Kong SAR, Hungary, Iceland, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Madagascar, Malta, Mauritius, Mexico, Moldova, Montenegro, Morocco, Mozambique, Namibia, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russia, Rwanda, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Tanzania, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, the United Kingdom, and Uruguay, plus the Central African Economic and Monetary Community and the Eastern Caribbean Currency Union.
125. INT'L MONETARY FUND, supra note 100, at 17.
126. INT'L MONETARY FUND & WORLD BANK, ASSESSING THE IMPLEMENTATION OF STANDARDS: A REVIEW OF EXPERIENCE AND NEXT STEPS 26 (2001), available at http://www.imf.org/external/np/pdr/sac/2001/eng/review.pdf.
127. Id. at 26.
128. Id.
129. Id.
130. According to the Results of the Uruguay Round of Multilateral Trade Negotiation, the GATS is composed of four parts: (1) the main text of the Agreement (the General Agreement on Trade in Services), (2) eight Annexes, (3) Schedules of specific commitments, (4) List of Article II Exemptions. The GATS Text refers to only the first part. General Agreement on Trade in Services, Apr. 15, 1994, Marrakesh Agreement Establishing the World Trade Organization, Annex 1B, THE LEGAL TEXTS: THE RESULTS OF THE URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS 283, 33 I.L.M. 1125, 1168 (1994) [hereinafter GATS].
131. GATS Article II (most favored nation treatment) is composed of three paragraphs, applicable to all services sectors. Paragraph 1 is the core rule identifying the MFN obligation with respect to trade in services. It requires that each member accord to services and service suppliers of any other member treatment no less favorable than that it accords to like services and service suppliers of any other country. GATS art. II.
132. The obligation of transparency provided by GATS Article III can be divided into three categories. The first is the obligation of publication of all relevant measures or international agreements pertaining to or affecting trade in services. The second is the obligation of notification to the WTO (the Council for Trade in Services) of any new laws (or any changes to existing laws) significantly affecting trade in services. The third is the obligation of responsiveness to requests by other WTO Members for information through the establishment of enquiry points. GATS art. III.
133. See GATS art. I(3)(b) ("'[Services' includes any service in any sector except services supplied in the exercise of governmental authority.").
134. See generally WENDY DOBSON & PIERRE JACQUET, FINANCIAL SERVICES LIBERALIZATION IN THE WTO 76-77 (1998).
135. This is an area which merits further attention but which is beyond the scope of this Article.
136. INT'L MONETARY FUND & WORLD BANK, THE STANDARDS AND CODES INITIATIVE - IS IT EFFECTIVE? AND HOW CAN IT BE IMPROVED? (2005), available at http://www.imf.org/external/np/pp/eng/2005/070105a.pdf (approved by Mark Allen & Danny M. Leipziger) (discussing the role of the standards and codes initiative launched in 1999 in strengthening the international financial architecture). See also INT'L MONETARY FUND, POLICY DEV. & REVIEW DEP'T, THE STANDARDS AND CODES INITIATIVE - IS IT EFFECTIVE? AND HOW CAN IT BE IMPROVED?: BACKGROUND PAPER (2005) (approved by Mark Allen), available at http://www.imf.org/external/np/pp/eng/ 2005/070105b.pdf (providing back ground on the standards and codes initiative and reviewing its results).
137. See INT'L MONETARY FUND & WORLD BANK, supra note 128.
138. See id. at 30 (discussing how to develop a detailed follow-up plan in selected countries to integrate the initiative into other Bank and Fund work).
139. INT'L MONETARY FUND, INDEP. EVALUATION OFFICE, REPORT ON THE EVALUATION OF THE FINANCIAL SECTOR ASSESSMENT PROGRAM (2006), available at http://www.imf.org/external/np/ieo/2006/fsap/eng/pdf/report.pdf.
140. WORLD BANK, INDEP. EVALUATION GROUP, FINANCIAL SECTOR ASSESSMENT PROGRAM: IEG REVIEW OF THE JOINT WORLD BANK AND IMF INITIATIVE (2006), available at http://siteresources.worldbank.org/EXTFINSEC/Resources/ fsap_evaluation.pdf.
141. INT'L MONETARY FUND, supra note 134, at 13.
142. Id. at 13-14.
143. See INT'L MONETARY FUND, POLICY DEV. & REVIEW DEP'T, STANDARDS AND CODES-IMPLEMENTING THE FUND'S MEDIUM-TERM STRATEGY AND THE RECOMMENDATIONS OF THE 2005 REVIEW OF THE INITIATIVE 2 (2006) (approved by Mark Allen), available at http://www.imf.org/ external/np/pp/eng/2006/062906.pdf (discussing "the operational changes that are being made to the Fund's work on Standards and Codes, to implement the Fund's Medium-Term Strategy (MTS) and the recommendations of the 2005 IMF-World Bank review of the Standards and Codes Initiative").
144. WORLD BANK, supra note 132, at xii.
145. See INT'L MONETARY FUND, DEVELOPMENT ISSUES IN THE FSAP (2003), http://www.imf.org/external/np/fsap/2003/022403b.htm (discussing the infrastructure needed to support healthy financial sector development and the stability assessments that apply).
146. See The World Bank Group, Millennium Development Goals, http://www.developmentgoals.org (last visited Dec. 12, 2007) (providing comprehensive information on the Millennium Development Goals, commonly accepted as a framework for measuring development progress and creating a global partnership for development). See generally United Nations Millennium Declaration, G.A. Res. 55/2, U.N. Doc. A/RES/55/2 (Sept. 18, 2000) (reaffirming the United Nations' commitment to supporting world peace and justice, upholding fundamental values, and facilitating globalization in a positive way); The Secretary-General, Road Map Towards the Implementation of the United Nations Millennium Declaration: Report of the Secretary General, U.N. Doc A/56/326 (Sept. 6, 2001) (assessing the goals and commitments made under the Millennium Declaration and offering suggestions and best practices for meeting them).
147. For a highly readable treatment on the benefits of financial globalization, see FREDERIC MISHKIN, THE NEXT GREAT GLOBALIZATION: HOW DISADVANTAGED NATIONS CAN HARNESS THEIR FINANCIAL SYSTEMS TO GET RICH (2006).
148. See MORRIS GOLDSTEIN & PHILIP TURNER, BANKING CRISES IN EMERGING ECONOMIES: ORIGINS AND POLICY OPTIONS (Bank for Int'l Settlements, Economic Paper No. 46, 1996), available at http://www.bis.org/publ/econ46.pdf (exploring the factors responsible for banking problems in developing countries and some crisis prevention or reduction options available); see also William R. White, What Have We Learned from Recent Financial Crises and Policy Responses? (Bank for Int'l Settlements, Working Paper No. 84, 2000), available at http://www.bis.org/publ/work84.pdf (advocating for a focus on crisis prevention, crisis management, and crisis resolution in approaching recurring financial crises, noting that incrementalist solutions seem to be the more appropriate treatment for such crises than an overhaul of the international financial system).
149. See Graciela Laura Kaminsky & Sergio L. Schmukler, Short-Run Pain, Long-Run Gain: The Effects of Financial Liberalization (Int'l Monetary Fund, Working Paper No. WP/03/34, 2003), available at http://www.imf.org/external/pubs/ft/wp/2003/wp0334.pdf (analyzing the short-term and long-term effects of financial liberalization on capital markets).
150. See Hali J. Edison et al., Capital Account Liberalization and Economic Performance: Survey and Synthesis (Nat'l Bureau of Econ. Research, Working Paper No. 9100, 2002), available at http://www.nber.org/papers/ w9100.pdf (exploring the effects of capital account liberalization and stock market liberalization on economic growth).
151. See id. at 24 (citing a study that found that "capital account openness detracts from growth for countries at lower levels of income").
152. See Geert Bekaert et al., Does Financial Liberalization Spur Growth? (Nat'l Bureau of Econ. Research, Working Paper No. 8245, 2001), available at http://www.nber.org/papers/w8245.pdf (examining ways in which the liberalization process may contribute to economic growth).
153. See Udaibir S. Das et al., Insurance and Issues in Financial Soundness, 17-20 (Int'l Monetary Fund, Working Paper No. WP/03/138, 2003), available at http://www.imf.org/external/pubs/ft/wp/2003/wp03138.pdf (discussing several recent insurance failures and the important factors that played a role in causing them).
154. See Kaminsky & Schmukler, supra note 141.
155. See Bekaert et al., supra note 144; Frederic S. Mishkin, Financial Policies and the Prevention of Financial Crises in Emerging Market Countries (Nat'l Bureau of Econ. Research, Working Paper No. 8087, 2001), available at http://www.nber.org/papers/w8087.pdf (explaining that financial liberalization produces investment opportunities and therefore spurs economic growth).
156. Kaminsky & Schmukler, supra note 141, at 8-9 (explaining the criteria used to determine the status of the country's financial system and the meaning of each classification).
157. Id. at 37.
158. DAVID O. BEIM & CHARLES W. CALOMIRIS, EMERGING FINANCIAL MARKETS (2001).
159. Id. at 47.
160. Id. at 119.
161. See Joseph J. Norton, "International Financial Law," An Increasingly Important Component of "International Economic Law": A Tribute to Professor John H. Jackson, 20 MICH. J. INT'L L. 133, 147 (1999) (stating that study is needed on the effects of WTO liberalization of financial services and safety and soundness concerns).
162. See Nico Valckx, WTO Financial Services Commitments: Determinants and Impact on Financial Stability (Int'l Monetary Fund, Working Paper No. WP/02/214, 2002), available at http://www.imf.org/external/ pubs/ft/wp/2002/wp02214.pdf (providing an analysis of the relationship between WTO financial services, liberalization, and financial crises).
163. See Alexei Kireyev, Liberalization of Trade in Financial Services and Financial Sector Stability (Analytical Approach) (Int'l Monetary Fund, Working Paper No. WP/02/138, 2002), available at http://www.imf.org/external/pubs/ft/wp/2002/wp02138.pdf (stating that the coordination of WTO-driven liberalization of financial sectors with preexisting international agreements will best facilitate financial stability); see also Alexei Kireyev, Liberalization of Trade in Financial Services and Financial Sector Stability (Empirical Approach) (Int'l Monetary Fund, Working Paper No. WP/02/139, 2002), available at http://www.imf.org/ external/pubs/ft/wp/2002/wp02139.pdf (exploring the economic links between WTO liberalization efforts and financial sector stability, specifically as they relate to exchange rate and banking sector stability).
164. BEIM & CALOMIRIS, supra note 150, at 105-06.
165. See World Trade Organization, Ministerial Declaration of 14 November 2001, WT/MIN(01)/DEC/1, 41 I.L.M. 746, para. 36 (2002). We agree to an examination, in a Working Group under the auspices of the General Council, of the relationship between trade, debt and finance, and of any possible recommendations on steps that might be taken within the mandate and competence of the WTO to enhance the capacity of the multilateral trading system to contribute to a durable solution to the problem of external indebtedness of developing and least-developed countries, and to strengthen the coherence of international trade and financial policies, with a view to safeguarding the multilateral trading system from the effects of financial and monetary instability.
166. See World Trade Organization, Working Group on Trade, Debt and Finance, Report to the General Council, WT/WGTDF/2 (Jul. 11, 2003) (stating that the group would focus on these issues as part of its three-part Work Plan).
167. World Trade Organization, Working Group on Trade, Debt and Finance, Improving the Availability of Trade Financing: Report of Preliminary Work, WT/WGTDF/W/23 (Mar. 25, 2004).
168. In relation to trade finance, see INT'L MONETARY FUND, POLICY DEV. & REVIEW DEP'T, TRADE FINANCE IN FINANCIAL CRISES: ASSESSMENT OF KEY ISSUES (2003) (approved by Mark Allen), available at https://www. international monetaryfund.com/external/np/pdr/cr/2003/eng/120903.pdf (showing a relationship between financial crises and loss of trade via loss of trade finance).
169. See EUR. ECON. CMTY. COMM'N, THE DEVELOPMENT OF A EUROPEAN CAPITAL MARKET 79-80 (1966) (providing potential explanations for the trends seen in the movement of capital between Member States and non-member countries); see also CHARLES P. KINDLEBERGER, A FINANCIAL HISTORY OF WESTERN EUROPE 450 (2d ed. 1993) (stating that "national markets in Europe discriminated in favor of domestic borrowers, especially national governments").
170. See Manning Gilbert Warren III, Global Harmonization of Securities Laws: The Achievements of the European Communities, 31 HARV. INT'L L. J. 185 (1990) (discussing the effects of harmonization, deregulation, and re-regulation on the development of national financial regulation in Europe).
171. The purpose of this section is not to evaluate the specific provisions of the EU framework; however, a general appreciation of the key elements of the EU framework is necessary to understand the development of European financial market regulation and the way in which it integrates liberalization and regulation.
172. See generally DAMIAN CHALMERS, CHRISTOS HADJIEMMANUIL, GIORGIO MONTI & ADAM TOMKINS, EUROPEAN UNION LAW: TEXT AND MATERIALS (2006).
173. See Commission White Paper on Completing the Internal Market, COM (1985) 310 final (Jun. 14, 1985) (detailing the movement toward a unified European internal market).
174. See generally Single European Act, Feb. 17, 1986, 1987 O.J. (L169) 1.
175. See id.
176. See Warren, supra note 162, at 186-87 (analyzing the efforts of the European Communities to overcome the obstacles created by regulatory disharmony among states).
177. The passport directives in the financial services area include: (1) the First, Second and Third Banking Coordination Directives ("1BCD," "2BCD," and "3 BCD") (banking); (2) the Investment Services Directive ("ISD") (investment firms and securities markets), which has been repealed by the Directive on Markets in Financial Instruments ("MiFID"); (3) the UCITS Directive (collective investment schemes); (4) the First, Second and Third Life Assurance Directives (life assurance); (5) the First, Second and Third Non-Life Insurance Directives (non-life insurance); and (6) the proposed First Pension Funds Directive (pension funds).
178. See Innes Fraser & Paul Mortimer-Lee, The EC Single Market in Financial Services, 33 BANK OF ENG. Q. BULL. 92 (Feb. 1993).
179. See Statistical Annex, 33 BANK OF ENG. Q. BULL. 169, stat. annex (Feb. 1993) [hereinafter Statistical Annex].
180. As a general rule, the home state will have responsibility for the prudential supervision of a firm and all its branches as well as the "fitness and properness" of its managers and major shareholders, while the host state will be responsible for the conduct of a firm's business with its customers in the host state. Fraser & Mortimer-Lee, supra note 170, at 93.
181. See Statistical Annex, supra note 171.
182. See Press Release, European Union Commission, Financial Services: Commission Proposes Framework for Action (Oct. 28, 1998), available at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/98/941&format= HTML&aged=1&language=EN&guiLanguage=en (exploring some aspects in achieving and maintaining the Single Market in financial services).
183. See Communication of the Commission on Financial Services: Implementing the Framework for Financial Markets: Action Plan, COM (1999) 232 final (May 11, 1999) (outlining objectives which would guide financial policies in coming years, setting priorities and time-frames for achieving these objectives, and recognizing factors that may contribute to their achievement).
184. See Howard Davies, FMG Lecture, Creating a Single Financial Market in Europe: What do We Mean? (Feb. 3, 2004) (transcript available at http://www.lse.ac.uk/collections/LSEPublicLecturesAndEvents/pdf/20040203 Davies.pdf) (evaluating the progress of the Commission towards creating a single financial market under the FSAP).
185. Commission White Paper on Financial Services Policy 2005-2010, at 4, COM (2005) 629 final (May 12, 2005).
186. See Comm. Of Wise Men, Final Report of the Committee of Wise Men on the Regulation of European Securities Markets (Feb. 15, 2001), available at http://ec.europa.eu/internal_market/securities/docs/lamfalussy/wisemen/ final-report-wise-men_en.pdf (providing the conclusions from the studies of Lamfalussy's expert group).
187. See Press Release, European Union, Commission Welcomes Parliament's Agreement on Lamfalussy Proposals for Reform (Feb. 5, 2002), available at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/ 02/195&format =HTML&aged=1&language=EN&guiLanguage=en (describing the four-level approach and its reception by the European Parliament).
188. These countries are Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, and Slovenia.
189. For details, see Christos D. Hadjiemmanuil, Central Bankers' "Club" Law and Transitional Economies: Banking Reform and the Reception of the Basle Standards of Prudential Supervision in Eastern Europe and the Former Soviet Union, in EMERGING FINANCIAL MARKETS AND THE ROLE OF INTERNATIONAL FINANCIAL ORGANIZATIONS 179 (Joseph J. Norton & Mads Andenas eds., 1996).
190. Cally Jordan & Giovanni Majnoni, Financial Regulatory Harmonization and the Globalization of Finance 9 (World Bank, Policy Research Working Paper No. 2919, 2002), available at http://papers.ssrn/ com/sol3/papers.cfm?abstract_id=636281.
191. See id. at 9-10 (summarizing the two lessons).
192. See Giovanoli, supra note 7; Norton, supra note 7; Weber, supra note 7 (all discussing aspects of the "new international financial architecture").
193. See generally Jordan & Majnoni, supra note 182.
194. See id. at 15-16 (expounding upon the three issues).
195. See id. at 15-17 (describing the difficulty of transforming ideas into international laws).
196. See id. at 20 ("[T]he proliferation of international standards and codes may exemplify the lack of coordination that often precludes 'first best' approaches to market regulation.").
197. See id. at 22-24 (identifying the two aspects of fair representation).
198. Id. at 23-24.
199. See generally INT'L MONETARY FUND, THE MANAGING DIRECTOR'S REPORT ON IMPLEMENTING THE FUND'S MEDIUM-TERM STRATEGY (2006), available at http://wwwimf.org/external/np/pp/ eng/2006/040506.pdf (synthesizing discussions about the "strategic direction of the Fund").
200. Id. at 4.
201. See generally id.
202. See generally id.
203. See id. at 12, 15 (noting, as one of its strategies, a "division of labor with World Bank").
204. WORLD BANK INDEP. EVALUATION GROUP, WORLD BANK ASSISTANCE TO THE FINANCIAL SECTOR: A SYNTHESIS OF IEG EVALUATIONS (2006), available at http://siteresonrces.worldbank.org/EXTFINSEC/Resources/ financial_sector_synthesis.pdf.
205. See generally WORLD BANK INDEP. EVALUATION GROUP, WORLD BANK LENDING FOR LINES OF CREDIT: AN IEG EVALUATION (2006), available at http://siteresources.worldbank.org/EXTFINSEC/Resources/lines_of_credit.pdf (evaluating lines of credit financed by the World Bank).
206. See generally WORLD BANK INDEP. EVALUATION GROUP, IEG REVIEW OF WORLD BANK ASSISTANCE FOR FINANCIAL SECTOR REFORM (2006), available at http://www.worldbank.org/ieg/financial_sector (tracking the effects of technical assistance loans).
207. WORLD BANK INDEP. EVALUATION GROUP, supra note 132 (assessing the effectiveness of the Financial Sector Assessment Program).
208. See generally WORLD BANK INDEP. EVALUATION GROUP, PENSION REFORM AND THE DEVELOPMENT OF PENSION SYSTEMS: AN EVALUATION OF WORLD BANK ASSISTANCE (2006), available at http://www.worldbank.org/ieg/pensions/documents/pensions_evaluation.pdf (analyzing the World Bank's assistance to support pension reform).
209. See generally WORLD BANK INDEP. EVALUATION GROUP, supra note 196 (highlighting common themes found in three evaluations that "reviewed major components of the Bank's assistance during more than a decade to the financial sectors of client countries").
210. Id. at viii (discussing the joint Bank-IMF Financial Sector Assessment Program).
211. See id. (pointing out inadequacies in past crisis support tactics).
212. See id. at ix (emphasizing the importance of the Financial Sector Network).
213. See generally Aaditya Mattoo, Developing Countries in the New Round of GATS Negotiations: Towards a Pro-Active Role, in DEVELOPING COUNTRIES AND THE WTO: A PRO-ACTIVE AGENDA 75, 75-93 (Bernard Hoeckman & Will Martin eds., 2001).