The Project | Call for Proposals | The Global Governance Dimension | Country Case Studies

The aim of the project “Asymmetric Demography and Global Financial Governance: In Search of Growth and Common Interests in the Post-Crisis World” is to investigate strategies to reform the International Financial Architecture (IFA) and design the corresponding changes in the Domestic Financial Architecture (DFA) so as to promote demographic-driven flows and weaken the factors that favor free-riding and defensive strategies. Although the problems to be analyzed have to do with the governance of global financial flows, the research work will focus on the emerging-country side of such global problems.

In line with this, the research work is organized in two basic dimensions. The first has to do with the global side of the problem and focuses on the role of demographic-driven financial flows between rich and developing countries undergoing different demographic stages; the purpose is to assess the ability of the current IFA to provide governance for such flows. The second dimension comprises the study of the linkages between demographic trends, the current account, financial flows, and the quality of the DFA in the case of a set of systemically important emerging countries (i.e. members of the G-20), which are experiencing different stages in their demographic transition.

The main specific results of the research work are expected to be the following:

(a) The identification of the flaws in the global governance structures that are the most relevant obstacles to potentially beneficial demographic-driven financial transactions between developed and developing countries;

(b) The characterization of the incentives for adopting non-cooperative strategies that emerging countries are facing in the post-crisis period and reform alternatives to change the “payoff matrix” so as to promote cooperation to exploit the growth potential of demographic asymmetries;

(c) The identification of the characteristics of financial underdevelopment and of the weaknesses of the DFA that are deemed the most relevant obstacles to financial transactions associated with demographic opportunities;

Based on the research findings corresponding to these two points, the project will draw policy implications to:

(d) Explore options to design an agenda for discussion within the framework of the G-20 or other relevant fora to promote international flows induced by demographic asymmetries between emerging and advanced economies.

(e) Characterize the necessary parallel national reforms for the DFA of emerging countries to be consistent with a demography-friendly IFA.   
The project is coordinated by Centro de Estudios de Estado y Sociedad (CEDES) with funding provided by the International Development Research Centre (IDRC).

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