Bretton Woods 2.0 Project Research

This report outlines how the Bretton Woods Institutions can mitigate the effects of growing geoeconomic fragmentation on global net-zero targets.

This policy brief examines the impact of climate change on education, health, and other development priorities for low-income and developing countries.

To improve its global analysis, the IMF should consolidate its conjunctural analysis into a single, shorter, and more pointed report.

Given China’s current resource advantage, Western countries need to make better use of the IMF and World Bank where doing so is in their interest. If applied more broadly, this approach could provide incentives for other governments to return to multilateral institutions, instead of China, for support.

The African continent potential to revitalize the world economy and reverse the downward trend in global growth. However, for this to materialize, it needs substantial investments in its physical and social infrastructure.

Fragmentation resulting from geopolitical competition between large economies is posing a serious challenge to the fulfillment of IMF’s core missions. Here’s how it can respond.

Bretton Woods Institutions will face enormous challenges going forward. While ambitious reforms are needed, its unlikely they will be seriously considered due to high geopolitical tension and mistrust among major countries. Nevertheless, the need for reform is pressing. Therefore, it is important to look at more feasible reform, narrower in scope and technocratic in nature, to improve the these institutions.

Despite its size, China has an inadequate voice in traditional Bretton Woods Institutions. This paper examines aspects of the dissatisfaction China has with existing global governance institutions such as the World Trade Organization (WTO) and the International Monetary Fund (IMF). It also discusses the proposed changes to these institutions according to discussions with Chinese experts.

This new report examines the increasingly influential role of non-state and quasi-public actors in global development and sustainable finance, specifically through the rising level of sustainable investments in emerging and development markets.

Is the emerging architecture appropriate, effective, and sufficient to manage the global transition to digital money? This report focuses on three domains: financial stability, development and financial inclusion, and global payment systems.

The paper emphasizes the need for a governance reform roadmap at the IMF and World Bank focusing on quota reallocation, diplomatic efforts, and a commitment to diversity and democratic principles.

The legitimacy of the World Trade Organization is in question. The United States and its allies, and leaders in the organization, can better wield its potential to address global issues, specifically to reduce inefficiencies from fragmentation caused by subsidies.

Despite President Javier Milei’s popularity with a large part of the Argentinian public, failure to array Congress behind his movement could again leave the country with a half-completed reform agenda.

Industrial policy is making a comeback around the world. There’s no better sign of this than the new attention paid to subsidies by bastions of the Washington consensus like the International Monetary Fund (IMF), which has historically been very skeptical of them.

“Making the right policy choices will define the future of the world economy,” International Monetary Fund Managing Director Kristalina Georgieva said at the Atlantic Council.

The politics and mathematics of reform are tougher than they appear. A simple reform matching quotas to global economic weight will not be welcomed by many countries.

With deeper engagement of Bretton Woods institutions, African economies can seize the moment and become the engine of global growth.

Tobias Adrian outlines the IMF’s view on CBDCs’ potential for payment systems, financial inclusion, and cross-border payments, emphasizing innovation and collaboration for effective implementation.

Digitalization offers a novel opportunity to build climate resilience if properly supported by the Bretton Woods Institutions.

US trade policy can advance labor rights globally through stronger enforcement mechanisms and deeper multilateral collaboration with international organizations.

In light global debt crisis, the IMF plays crucial role in navigating complexities exacerbated by COVID-19, emphasizing transparency, incentives, and innovative financial tools for effective debt management.

The BWIs must address the evolving attitudes of countries like Brazil to maintain their relevance in an ever-changing global order.

The G20’s recent meeting failed to make progress on sovereign debt restructuring, disappointing low and middle-income countries. Zambia’s deal favored China’s preferences, revealing the challenges in establishing an equitable framework for debt relief.

As government and private-sector creditors finally take steps to restructure debt, questions remain over their readiness to meaningfully reduce debt burdens.

2022 revealed several roadblocks preventing ESG from contributing to sustainable development. To change course, more clarity and agreement from both private data providers and from regulators is necessary.

The president of the World Bank, speaking at the Atlantic Council as he prepares to hand over the reins to his successor, has one big worry about the global economy: a “reversal in development.” 

What to know about the former Mastercard chief executive officer’s surprise nomination to lead the World Bank.

The international community must apply pressure so that China and private-sector lenders join in facilitating a collective haircut that includes all lenders.

The IMF should stick to what it does best in aiding Ukraine: Using its macroeconomic expertise to corral broader support while sticking to its guidelines for its own loan.

Achieving the target to limit global warming to below 2, preferably 1.5 degrees Celsius, by the end of the century seems more unfeasible than ever. The reason is simple. The most critical of greenhouse gases have continuously risen in the past decade and CO2 emissions are only expected to grow more in 2022 and for the foreseeable future. COP27 needs to pave the path for a renewed international cooperative and enforceable framework to reduce global greenhouse gas emissions by the world’s top emitters both in absolute terms and in per capita terms.

Having more than $65 trillion in assets, institutional investors such as SWFs and pension funds are uniquely positioned to bridge low-income economies’ infrastructure financing gap in the coming decades. The Bretton Woods Institutions (BWI) can encourage investment in developing countries’ infrastructure through providing various guarantee and insurance mechanisms, thereby reducing risk for private investors.

The global community, with the leadership of the IMF and the World Bank, needs to focus on Sub-Saharan Africa. While the population in countries that have moved into the high-income and upper middle-income categories are now aging rapidly, Sub-Saharan Africa is home to one of the world’s youngest population structure. In addition to lifting hundreds of millions of people out of poverty in this region, sustained and inclusive growth over the next two decades in Sub-Saharan Africa could contribute to the growth in the global economy.

With a voting majority at the Bretton Woods Institutions, the G7 and EU can collectively ask the institutions to comply with their sanctions. This is complicating the IMF and World Bank’s functions.

The growing divide is under the scanner as US Treasury Secretary Yellen and Colombian Finance Minister Restrepo both voiced a need to modernize the institutions.

The emergence of new regional entities in global finance means the Bretton Woods Institutions are no longer the sole flag-bearers of economic development and financial stability.

Multilateral development banks and multilateral financial institutions have grown in number. This could be a blessing and a curse.

Full democratization of BWIs is not realistic. A more pragmatic approach would work towards a “double majority” system.

Voting quotas at Bretton Woods Institutions continue reflecting the 1944 power structure, despite significant changes to the global economy.