The ongoing G-20 round, led by Japan, has among its areas of focus, global economic governance and the international financial architecture. In this context, the effectiveness of international financial institutions during the Global Financial Crisis (GFC) of the last decade can provide insights into the challenges of preventing or dealing with future crises, and point the way to needed reforms.

The IMF exhibited both strengths and weaknesses during the GFC. It is seen by many as having responded quickly and flexibly to the crisis, including by obtaining large additional resources from the global community, developing new and streamlined lending facilities, and enhancing working relationships with other international organizations, including the FSB and G-20. The sharp rise in lending activities—following a period in which IMF relevance was questioned and staff reduced—led some to conclude that the institution indeed had a “very good crisis.” Nevertheless, there were significant missteps. The likelihood, scope and virulence of a potential financial crisis was severely underestimated at the start. Moreover, several large programs, most notably for Greece, ran into serious problems.

How did these successes and failures emerge from the internal dynamics and political cross-currents faced by the institution? What should be done differently going forward? How can the IMF improve its ability to anticipate crises and deliver timely and effective assistance in the face of such crises? What can other institutions, especially those working in global policy, learn from this experience?

Mr. Jerald Schiff will draw on his experience as a senior IMF staff member, and advisor in the Office of the Managing Director during the crisis, to discuss these issues. Professor Ito has agreed to serve as a discussant and to lay out his own views on needed IMF reforms.