There are two major problems which interacted together to cause the crisis: the failure of the financial regulatory and supervisory systems and the failure of the international monetary system. These problems are outlined in written evidence submitted to trhe UK Treasury Committee.
Efforts to reform the IMF and World Bank's governance structures are coming to a head, but they may not go far enough.
The financial and economic crises have brought out a plethora of ideas for reforming the international financial architecture. Below, we highlight a few of the many different blueprints.
A conference on November 14 of international regulators, policymakers and academics was held to discuss reform of the financial system and prevention of further social crisis.
On 28 October, more than 40 representatives of NGOs, development organisations, labour unions, think tanks, academia and the media came together in London to discuss how to take forward demands for a fundamental redesign of the international financial system. The main themes for the day were about creating a system that works to improve people's live, reduce poverty, and protect the environment.
Norway, Germany, IMF, WOrld Bank and experts discuss tackling tax evasion and capital flight.
As global finance dries up and economic markets crash, criticisms mount of the IMF and its inability to convince its largest members to curb speculation or better regulate the financial sector.
The Commission on Growth and Development, a group of policy makers, business leaders and scholars, has warmed to state intervention and cooled towards unfettered market-led reforms.
The irony of the IMF giving a passing grade to Liechtenstein on money laundering in the same month that Germany launches a massive investigation into tax evasion based in the Alpine country shows that the Fund has a lot of work to do if it wants to help clamp down on illicit flows.
While the World Bank has done a lot of work on financial sector reform, the IMF is also a key actor. Since facing criticism over its lack of understanding of financial markets in the wake of the 1997 Asian financial crisis, the IMF has significantly increased its capacity for analysis of the financial sector.