The Crooked Path of Financial Reform

Fiscal repair is also essential.

Financial Reform s Breakthrough Year

One is that financial reform is inherently complicated.

The second issue is reform, with the financial sector a high priority.

But financial reform is too technical for non specialists.

As with the financial sector, however, crisis can be the mother of reform.

The stakes in the debate over international financial reform are huge.

This in turn threatens the functioning of the financial system and the effectiveness of the reform programs.

Medium term fiscal reform, for its part, will be pushed by bond market vigilantes.

Financial reform could still go belly up. But it is premature to write it off as a failure.

As long as our financial system demands endless growth, reform is unlikely to succeed.

WASHINGTON, DC Financial reform in the United States and worldwide hangs in the balance.

Fiscal reform should enhance government legitimacy by paying greater attention to equity.

It is time to broaden the agenda of global financial reform, which so far has focused on an essential but still limited set of issues, particularly financial regulation.

They are wary of rocking the financial boat, so they go easy on financial reform and refuse to insist on more equity capital for banks.

Likewise, they cannot fix debt overhangs, repair broken home financing, or address medium term fiscal reform challenges on their own.

What the two narratives about financial reform have in common is that neither has a happy ending.

The need for the Palestinian Authority to adhere to the reform agenda and to re establish fiscal discipline was a central theme of the meeting.

Climate change is mine, but it might be financial reform or a simpler tax system or inequality.

Surprisingly, however, this issue has been entirely absent from current global debates on financial reform.

So the entire fiscal system is a crucial item on China s reform agenda, especially management of public capital.

ZANZIBAR Here s an odd prediction for the coming year 2013 will be a watershed for financial reform.

Europe is backtracking on financial reform issues its policymakers are too preoccupied with holding the eurozone together.

Almost two years on, financial reform remains incomplete, as the agenda itself is still evolving.

That leaves the final explanation those in charge of financial reform really did not want to make rapid progress.

With today's high degree of economic volatility, developing countries had to put aside substantial resources.

But, in the long run, China s fiscal and financial stability will be ensured only by systematic institutional reform of central local government relationships.

The financial reform law passed by the United States Congress last month requires improved transparency from banks and other financial services firms.

But, regardless of the eventual outcome, the case has far reaching implications for the financial reform legislation that the US Congress is now considering.

Nevertheless, while no one is proclaiming, mission accomplished, it is not true that nothing has been done to reform finance.

Any chance to make this work would have required overhauling the financial system early in 2009, but that opportunity was largely wasted.

Long term growth considerations, while recognized as crucial, seem distant from the here and now of financial repair and restoration of confidence.

Algeria was particularly encouraged by the positive results of the reform process, as confirmed in the report of the Office of the Comptroller General.

Management reform

Law reform

Educational reform

Block reform.

Reform Club.

Agrarian reform?

Implementing these improvements will be difficult, to be sure. As with the financial sector, however, crisis can be the mother of reform.

At the same time, the focus on financial reform in developed economies, while warranted, has contributed to complacency in developing economies.

The group of core senators pushing for financial reform is already strong, including Sherrod Brown, Jeff Merkley, Carl Levin, and Jack Reed.

They should also focus on the need for improved income distribution and creation of new assets, adjustment of the education system to labour market needs and on financial reforms.

We are aware of the need to reorient our work and our priorities in those countries and of the importance of reinforcing issues such as governance, the proper functioning of institutions and the necessity of fiscal reform and redistribution of wealth.