Assessment of systemic risks of financial sector

Our demands

  • Agree on adequate regulation and supervision of financial institutions, credit rating agencies and hedge funds through a UN framework;
  • A global ban on short selling among all markets and increase regulation/surveillance of high-frequency trading;
  • A global agreement on the importance of capital account management to prevent capital flight, limit speculative trading and arrest declines in currency and asset prices;
  • A new allocation of Special Drawing Rights (SDRs) needs to be agreed, commensurate with the level of need among developing countries;
  • A Global Fund for Universal Social Protection to support the most vulnerable countries in responding to the pandemic.
The dimension of gender equality:

The current economic recession is the result of a hyper-financialization of development and the global economy, of which financial institutions have been active promoters, including by adding conditionalities attached to austerity measures, blocking the possibility of any real development. This dynamic has augmented inequalities, including women’s and poor people’s structural limitations in gaining access to finance. They also magnify speculative flows, triggering increased financial risks, financial market volatility and liquidity shortages – for which central banks needed to intervene with billions of dollars during the current pandemic.

By the end of October, a coalition of economic justice and human rights organizations put together an event with UN Special Rapporteurs from several mandates speaking about their concerns regarding privatization of public services (including through PPPs) being pushed by the World Bank’s ‘private-first’ approach, highlighting its connection to debt issues, and pointing to alternative ways for financing these essential services.