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Policy Brief on the Financial Crisis - Africa's Voice, Representation and Effectiveness Participation

12-Oct-2009

There is a growing concern that the spill over from the financial crisis in developed markets and the resulting economic slowdown will threaten Africa’s potential “Growth Take-off”. A key challenge for the international community is to design and implement an appropriate regulatory framework which would manage risks, guard against excessive risk taking, while allowing financial institutions to innovate and support the real sector. An equally daunting challenge is to ensure that the regulation and governance of the international financial system and key global institutions are responsive to the needs and specific circumstances of developing countries. This will require more effective participation of developing countries in key decision-making processes in global institutional and governance bodies.

African countries have felt particularly disadvantaged, often excluded from international negotiations and decision-making on issues which have a significant impact on Africa’s development prospects. The current financial and economic crisis provides an important opportunity to advance the objectives embedded in the Monterrey Consensus(1), to re-engage and revitalize Africa’s voice and representation in the regulation of the international financial system, and to ensure that Africa’s interests are taken into account when decisions are made.

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