The International Financial Architecture Working Group (IFAWG) was established following the 2008−09 global financial crisis. Over the years, it has discussed policies to promote a more stable, resilient and balanced international financial architecture. During the Korean Presidency, the group played a key role in approving the 2010 International Monetary Fund (IMF) quota and governance reform. It also played an essential role in addressing the euro area crisis in 2011 during the French Presidency.
In its early years, the group focused on issues related to crises in developed countries, enhancing the representation and voice of emerging countries in global financial governance. Over the past three years it has been focused on addressing the challenges triggered by the succession of negative shocks (e.g. the COVID-19 pandemic and monetary constraints in central economies) that have impacted low- and middle-income countries. For example, during the COVID-19 pandemic in 2020/21, the IFAWG coordinated discussions that eased low-income countries’ debt-service burdens considerably. Recently, the group has been discussing issues such as optimising the balance sheets of multilateral development banks and their role as a system in an effort to improve the analysis and monitoring of capital flows, manage risks arising from their volatility and strengthen the global financial safety net.
