The Locus of International Financial Regulation
In November 2008, China, India, and Brazil moved from waiting in the corridor outside as world powers met to being invited inside. This broadening legitimacy of the world’s steering committee, from the G-7 to the G-20, is right and to be commended. It is not without difficulty. The shift in influence is to a group of countries that share little other than economic power. They have diverse experiences, challenges, cultural perspectives and starting points. This is particularly apparent in the field of financial regulation. Reflecting this, the developments in financial regulation across these countries since the Global Financial Crisis (GFC)—despite the triumphalist language of global regulation—is increasingly local. The prospect of the new global being quite local has dismayed “internationalists.” It need not. This chapter challenges the traditional dichotomy of more global vs. more local. It argues that financial internationalism—greater cooperation by nations for the benefit of all—is better served by institutions that help to integrate diverse systems than by those that try to enforce the one-size-fits-all approach to countries as different as Austria and Zambia.