In "What is wrong with the international financial architecture and some elements for its reform," Alfredo Calcagno, of UNCTAD's Division on Globalization and Development Strategies, looks at the technical and political elements necessary for a stable, predictable financial system.
Financial system safeguards, such as stable exchange rates and capital controls, which existed under the Bretton Woods system, no longer apply, Calcagno said. "Since the early '70s, we have turned to a floating system, with each country doing what is best for them," he said. "This is a diversity in which no rules are followed."
"The problems are very deep," he said. "But a working financial system is not only, or mainly, a technical issue," Calcagno added. "It is a political issue, as much, or even more, than a technical issue."