Identifying Methods of Financing for a World at Peace

In a peaceful world that recognizes the structuring nature of interdependence, international finance should perform three essential functions: allocate resources to useful investments; redistribute wealth to reduce divides between nations; mobilize resources quickly in the face of shocks. But the current architecture fails on all three fronts, and not only because of inadequate funding. The allocation remains dominated by short-term performance logics that underfund the energy transition, health, biodiversity and all global public goods. The flows of international cooperation are now subject to massive cuts in Western budgets. As for the response to shocks, existing mechanisms are slow, fragmented and often inequitable.

How can we refound this architecture and reform the multilateral institutions? What new instruments would make progress possible? How to mobilize private actors in the pursuit of the general interest?