Complementarity Between Regional and Global Financial Governance Institutions: The Case of ASEAN+3 and the Global Financial Safety Net

Pardo, Ramon Pacheco; Rana, Pradumna B.

doi:10.1163/19426720-02103005

Cited by 9 publications

(1 citation statement)

References 35 publications

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“…Other functions, such as surveillance and contingency planning, operate in parallel or in cooperation with the IMF. Still, there has been significant debate in the literature as to whether the current nested relationship might change to one that is parallel or even competing (see Chey, ; Grimes, ; Kawai, ; Lee, ; Pardo and Rana, ; Siregar and Chabchitrchaidol, ).…”

Section: Empirical Casesmentioning

confidence: 99%

Leaving the Nest: The Rise of Regional Financial Arrangements and the Future of Global Governance

Kring¹,

Grimes²

2019

Development and Change

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This article examines the impact of regional financial arrangements (RFAs) on the global liquidity regime. It argues that the design of RFAs could potentially alter the global regime, whether by strengthening it and making it more coherent or by decentring the International Monetary Fund (IMF) and destabilizing it. To determine possible outcomes, this analysis deploys a ‘middle‐up’ approach that focuses on the institutional design of these RFAs. It first draws on the rational design of institutions framework to identify the internal characteristics of RFAs that are most relevant to their capabilities and capacities. It then applies these insights to the interactions of RFAs with the IMF, building on Aggarwal's (1998) concept of ‘nested’ versus ‘parallel’ institutions, to create an analytical lens through which to assess the nature and sustainability of nested linkages. Through an analysis of the Chiang Mai Initiative Multilateralization (CMIM) and the Latin American Reserve Fund (FLAR), the article demonstrates the usefulness of this lens. It concludes by considering three circumstances in which fault lines created by these RFAs’ institutional design could be activated, permitting an institution to ‘leave the nest’, including changing intentions of principals, creation of parallel capabilities and facilities, and failure of the global regime to address regional needs in a crisis.

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