Scholars of global governance tend to agree that international organizations (IOs) enjoy expert authority because they provide applicable specialist knowledge for policymaking. This view implies th...

Exclusive expertise: the boundary work of international organizations

This chapter describes the joint International Monetary Fund/World Bank Financial Sector Assessment Program. It provides the context for the launch of the program and its objectives, including the direction in which the program is heading. It summarizes the general areas assessed, with a note on the role international financial standards and codes have played in the assessment process, and outlines how a typical assessment is conducted.

The Financial Sector Assessment Program

The current financial crisis has sparked an active debate about the adequacy of the global financial architecture (GFA) or the collective governance arrangements for promoting the stability of the international financial system which are mainly centred in the operations of the Financial Stability Forum (now Board) and IMF. There are three areas in particular in which the governance arrangements for the GFA did not work effectively in the lead-up to the current crisis: the oversight of global financial system stability, the coordination of international financial regulation, and the provision of a lender of last resort mechanism. In the light of recent G20 decisions, proposals for reform in each of these areas need to be discussed.

The Current Financial Crisis and Reform of the Global Financial Architecture

The Financial Sector Assessment Program (FSAP) is a major initiative, undertaken jointly by the World Bank and the IMF, in response to the financial crises of the late 1990s. The ultimate objectives of the program are (i) the identification and resolution of financial sector vulnerabilities and their macroeconomic stability implications; and (ii) fostering financial sector development and its contribution to economic growth. In addition, the FSAP was expected to help the Bank, Fund, and other institutions design appropriate assistance to address issues identified by the FSAP.

Khalid Siraj

Papers

Financial Sector Assessment Program: IEG Review of the Joint World Bank and IMF Initiative