The Feasibility Of FSB Mechanism To Participate In The International Monetary System Reform

Since the convening of the1944Bretton Woods Conferenceestablished the foundation of International Monetary Fund (IMF), it haspast seventy years. After the Second World War, IMF once played anindispensable role in establishing the pattern of new world economicorder, promoting the development of international trade and othereconomic activities, as well as the establishment of rules in theinternational monetary system. However, when confined to theestablishment of compromise under the Bretton Woods system, IMF hasbeen heavily criticized in the performance of the Asian financial crisisand the Mexican financial crisis. After the Subprime Crisis, theinternational community releases the signal of coordination ofinternational financial order and reform of the international monetarysystem. The global political talk platform--the Group of Twenty (G20)has made full discussion on its annual summits and drawn a blueprint ofthe future reconstruction of the international monetary system. Compared to the WB, IMF and WTO, G20has more flexibility onits organization mechanism. The Financial Stability Board provides a newway to build international financial governance. In retrospect, FSB hasformed a large number of rules in the establishment and promotion ofnew international financial standards, construction of early warningsystem and so on. From the perspective of force of law, these normswhich have not set mandatory obligations but been effective in theimplementation should be classified in the scope of international soft law.This mechanism has great practical significance for the reconstruction ofthe international monetary system.Chapter One starts from the analysis of mechanism of soft lawinstruments, which consists of three dimensions: subject of formulation,form, way of implementation. The Second Chapter discussesdevelopment and shortcomings of IMF, which is the current governancemechanism of international monetary system. Based on the operation ofG20and FSB soft law mechanism, Chapter Three focus on the feasibilityof FSB in the field of international currency. Chapter Four tries toconstruct FSB currency arrangements in the field of internationalmonetary system. In a word, the author comes to the conclusion thatinternational financial soft law will be effective to maintain theinternational financial order and be feasible to reform the internationalmonetary system in certain period of time.