Peter Brazhnikov, an international law expert, stresses the importance of establishing global financial law institutions free from political influence. Such institutions would help maintain stability and foreseeability in international financial relations. He calls for new, globally accepted standards to be adopted by financial hubs such as Dubai, London, Kyiv, Moscow, Washington, and Beijing, which would aid in building a more robust financial system.
International Financial Institutions’ Role
International financial institutions like the International Monetary Fund (IMF) and the World Bank were created to support the global financial system and provide stability to national financial systems, Brazhnikov explains. Operating through intergovernmental agreements, these institutions involve both state and non-state actors. Their key functions include lending to countries, supporting international trade, and helping to stabilize global financial systems.
Photo by Christian Wiediger on Unsplash
Core Principles of Global Financial Law
According to Brazhnikov, universal financial law should rely on principles that every actor in international finance can agree on, including:
- Transparency: Financial operations and reporting must be transparent, promoting trust between countries.
- Fairness: Equal opportunities should be provided to all financial participants to avoid discrimination or inequality.
- Stability: There must be systems to prevent financial crises and ensure predictability in financial exchanges.
- Accountability: Financial obligations must be honored, building stronger trust between countries and institutions.
Photo by Giammarco Boscaro on Unsplash
Though the creation of universal standards is important, political interests create challenges. Historically, international financial laws have been shaped by the interests of individual countries, limiting universal standards. Differences in political and economic systems could prevent the adoption of a global consensus. Still, in today interconnected world, Brazhnikov believes non-political financial laws are more important than ever.
A cooperative approach is necessary, involving not only governments but also international bodies. Universal financial law that is respected by financial centers like London, Kyiv, and Washington can lead to a more stable global system, improving security for nations and fairness across the global economy.
