Gallagher and Kring Publish Op-Ed in Global Policy on GFSN
Kevin Gallagher, Professor of Global Development Policy and Director of the Global Development Policy Center at the Frederick S. Pardee School for Global Studies at Boston University, and William Kring, Assistant Director of the Global Development Policy Center, a university-wide center in partnership with the Pardee School, wrote a, op-ed on the need for a more robust, inclusive, and equitable Global Financial Safety Net (GFSN) in Global Policy.
Co-authored with Barbara Fritz and Laurissa Mühlich of the Freie Universität Berlin. Published on May 5, 2020, the blog calls for a “a urgent upgrading of global institutions for short-term crisis finance.”
An excerpt:
Our data for 2018 figures suggest the need to level out the geographic coverage of the GFSN, increasing coverage especially for African and Latin American countries.
We see a need to expand the resources of the GFSN. The COVID-19 pandemic is likely to lead to the need for a significant increase in IMF and regional fund’s lending volumes, especially for emerging markets and developing countries. As the anchor of the GFSN, the IMF should increase its lending volume through issuing a large volume of Special Drawing Rights. Smaller regional funds will need a stepwise scaling up as well.
There is an urgent need to coordinate the different components of the GFSN. The status quo fire power of the GFSN can be used in a fruitful manner only if the diverse actors can begin to cooperate on different levels, while preserving their respective policy autonomy and comparative advantages.
Read the full piece here.
Kevin Gallagher is a professor of global development policy at Boston University’s Frederick S. Pardee School of Global Studies, where he directs the Global Development Policy Center. He is author or co-author of six books, including most recently, The China Triangle: Latin America’s China Boom and the Fate of the Washington Consensus. Read more here.
William Kring is the Assistant Director of the Global Development Policy Center, a university-wide center in partnership with the Frederick S. Pardee School for Global Studies. He previously was the Assistant Director and Research Fellow at the Global Economic Governance Initiative (GEGI). Read more here.