Reforming the international financial system

07 November 2011

We advocate for a fundamentally new approach to finance, which also works for the poor.

Long before the outbreak of the financial crisis in 2008, CIDSE was alerting the international community about the flaws and unjust power structures of the financial system. The last 30 years have seen an unjust shift of resource investment from labor to the financial sector, contributing to an overestimation of the value of finance above all other productive resources. The financial crisis has finally exposed the failure of an outdated and unbalanced international financial architecture that serves the interests of a few.

We ask for a fundamentally new approach to finance.

A decent income for workers; the creation of stabilization mechanisms for food prices which greatly impact on the incomes of farmers who make up the majority of the work force in developing countries; and mechanisms for a fairer distribution of income and wealth should be central to this approach.

In order to reach a financial system that also works for the poor, CIDSE advocates for a reform of the International Financial Institutions which have to become more inclusive, democratic, accountable and transparent.