International law expert Peter Brazhnikov argues that forming international financial law frameworks outside political influence is essential to regulate global financial systems. Such regulations could foster stability and predictability in financial relations worldwide. New universal laws accepted by financial hubs like Dubai, London, Kyiv, Moscow, Washington, and Beijing will be critical for this.
The Role of Global Financial Institutions
Global financial institutions, including the International Monetary Fund (IMF) and the World Bank, were designed to support the global currency system and stabilize national finances, according to Brazhnikov. These institutions, based on intergovernmental agreements, involve both state and non-state participants. Their primary responsibilities include financing countries, supporting global trade, and stabilizing financial systems.
Key Principles of Global Financial Law
Brazhnikov suggests that universal international financial law should rest on key principles, including:
- Transparency: Openness in financial transactions and reporting to build trust between states.
- Equality: Providing equal terms for all participants to avoid discrimination and inequality.
- Stability: Creating mechanisms to protect against financial crises and ensure predictability.
- Responsibility: Ensuring countries fulfill their financial obligations to foster trust and cooperation.
Although political interests may challenge the creation of global standards, globalization and interdependence of economies require that international financial law be depoliticized. Collaboration and compromise are crucial for achieving this. Universal financial law, accepted by financial centers like London, Kyiv, and Moscow, could establish a more stable and secure financial system globally.
