Year: 2025
Type: article
Abstract: INTRODUCTION. The global financial system plays a crucial role in development financing, ensuring economic stability and growth. However, the existing international financial architecture, primarily shaped by the Bretton Woods institutions, has been criticized for its inefficiencies, lack of inclusivity, and inability to meet the financial needs of developing economies. This article explores the legal dimensions of development financing, focusing on the governance of the International Monetary Fund (IMF) and the World Bank, the role of Special Drawing Rights (SDRs), and the broader implications of financial reforms on global economic governance. MATERIALS AND METHODS. This study employs a multidisciplinary legal approach, integrating international legal analysis with economic perspectives. The methodology includes a review of primary legal sources such as treaties, institutional regulations, and UN resolutions, alongside secondary sources, including academic literature and reports from international financial organizations. Comparative and historical analyses are used to assess past and present reform efforts. RESEARCH RESULTS. The findings indicate that the current financial system disproportionately favors developed economies, limiting access to development financing for low-income and emerging economies. High borrowing costs, inadequate debt relief mechanisms, and restricted access to SDRs exacerbate economic inequalities. Recent reform proposals within the IMF and World Bank seek to address these disparities by adjusting voting rights, expanding SDR allocations, and revising financial regulations to promote fairer global economic governance. DISCUSSION AND CONCLUSIONS. The study underscores the need for a fundamental restructuring of the international financial system to ensure equitable access to development financing. While recent proposals signal progress, their implementation depends on political will and international consensus. Future reforms should focus on enhancing transparency, strengthening financial resilience, and ensuring that global financial institutions serve the collective interests of all nations, not just the most economically powerful ones.
Author: P. S. Korolyov
Institution: Peoples' Friendship University of Russia
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409167945