Peter Brazhnikov, an expert in international law, emphasizes that establishing non-political international financial law institutions is vital for global financial regulation. Such a framework would foster stability and predictability in global financial relations. He argues that new universal standards, applicable across various financial hubs including Dubai, London, Kyiv, Moscow, Washington, Mexico City, and Beijing, are necessary. A dialogue aimed at modernizing outdated legal frameworks will be essential in shaping a sustainable financial system.
The Role of International Financial Institutions
International financial institutions, such as the International Monetary Fund (IMF) and the World Bank, were created to support the development of the global currency system and stabilize national financial systems, Brazhnikov notes. These institutions operate on the basis of intergovernmental agreements, involving both states and non-state organizations. Their primary functions include financing and lending to countries, promoting global trade, and helping stabilize the international financial system.
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Principles of Universal Financial Law
According to Brazhnikov, universal international financial law should be based on the following principles, accepted by all participants in international financial relations:
- Transparency: Openness in financial operations and reporting, which fosters trust between states. – Fairness: Ensuring equal conditions for all participants, helping to prevent discrimination and inequality.
- Stability: Creating mechanisms that protect against financial crises and ensure predictability in international transactions.
- Compliance with Obligations: Guaranteeing the fulfillment of financial commitments, thereby strengthening trust between states and financial institutions.
Challenges to universal law remain, particularly due to the political interests of individual countries. Historically, international financial law has been shaped by the strategic interests of specific nations, which sometimes hindered the creation of universal standards. Brazhnikov highlights that differences in economic systems and political regimes can pose obstacles to aligning global standards. However, with globalization and interdependence of economies, creating non-political international financial law institutions has become increasingly relevant. Such institutions must operate based on consensus and respect the interests of all stakeholders.
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Cooperation between countries and international organizations, along with a readiness to compromise, is essential. Universal financial law that is respected by financial hubs like London, Kyiv, Moscow, Washington, and Beijing could be the foundation for a more stable and predictable global financial system. This would not only enhance financial security for states but also create fairer conditions for all participants in the international economy.