IFI Reform - Score: 0

"UNCTAD IX was a major milestone in the renewal of UNCTAD. In a close partnership with the other member states, we succeeded in reforming UNCTAD's intergovernmental machinery and in refocusing its work on a small number of priorities to promote development through trade and investment with the aid of facilitating the integration of developing countries in the international trade system. We are committed to the implementation of these reforms."

The UK has several initiatives for IFI reform. However, it is difficult to give a positive grading on the Lyon commitment as there has been no concrete progress made on any of these initiatives.

Consider the following:

The UK has, in the last year, proposed to change the Articles of the IMF to give it an ability to deal with the issue of capital flows.

The UK has also been encouraging the World Bank to find new ways of attracting private sector investment to developing countries.

The UK has encouraged international financial groups to designate a "leading regulator" to coordinate a group response in the event of a global financial crisis.

The UK has also urged the IMF, the World Bank and other international financial institutions to not only offer advice and technical assistance, but to take fully into account progress in introducing anti-money laundering controls, in line with the FATF standards, in their regular surveillance of their members' economies.

Two and one half years ago, the UK launched the Heavily Indebted Poor Country Initiative and has been pressing for the swift and flexible implementation of the initiative.