“There seems to be no international architecture capable of coping with and preventing global [financial] crises from erupting,” a newly updated report (pdf) from the Congressional Research Service observes.
“The financial space above nations basically is anarchic with no supranational authority with firm oversight, regulatory, and enforcement powers. There are international norms and guidelines, but most are voluntary, and countries are slow to incorporate them into domestic law. As such, the system operates largely on trust and confidence and by hedging financial bets.”
The 109-page CRS report reviews the origins of the current crisis and summarizes its impact in different regions and countries. The report has not been made readily available to the public, but a copy was obtained by Secrecy News. See “The Global Financial Crisis: Analysis and Policy Implications,” April 3, 2009.