The International Monetary Fund and the governance of international surveillance

This chapter raises the question of what – and if any – change has taken place in the governance framework for surveillance in the aftermath of the global financial crisis of 2007-2011. In doing so, particular attention will be devoted to analyzing the role of the International Monetary Fund (IMF). Three main trends are identified. First is the progressive fragmentation of surveillance functions across several international actors. The second is the preference for a governance framework based on dialogue and persuasion as exemplified in the selection of soft surveillance instruments. In contrast, market discipline has somehow lost the pride of place that had been accorded to it in the recent past. Finally, there is a reorientation towards systemic, holistic approach to surveillance. This emerging approach challenges the view according to which markets are self-stabilizing and treats advanced economies – and not solely emerging market economies – as potential sources of risk.