The role of International Financial Institution (IFIs) in current macroeconomic trends: A Case Study of the Global Tax System.
IFIs remain influential actors in the global economy. Despite holding relatively lower shares of sovereign debt than private creditors, they still set the rules, keep themselves as lenders of last resort and contribute strongly to support mainstream narratives on what countries should and should not do on economic policies. Countries try to retain a connection with the International Monetary Fund (IMF) because it is the main multilateral institution engaging in debt restructuring and negotiation processes. IMF action legitimises private equity mechanisms and, in a certain sense, acts as a kind of debt collector. At the same time, as extensive research has shown, its role has been counterproductive for national economies, and, in many ways, very harmful to global South countries.
The need for rebuilding the global financial architecture has been argued for long. A feminist approach to restructuring the global financial system advocates for systemic changes that address the gendered impacts of debt, tax and trade; and for democratising international financial institutions, promoting fair trade practices, supporting local economies and promoting gender economic equity. Overall, feminists advocate for a transformed global financial architecture to make it more responsive to global South needs.
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