Reforming International Financial Architecture:

The crisis has  also prompted for a comprehensive review  of the  present architecture  of  the  international monetary system. With a view to developing,  a framework to prevent, manage and resolve  future crisis, within  the context  of a global environment of liberalised capital flows it is necessary to institute an international  financial architecture responsive to developing countries' needs.

In this regard, some reforms of  the IMF may be necessary  to reduce contagion effects of similar crises  in the future. There  is a need to develop a mechanism to provide for an orderly resolution of any financial crisis  in the future, as what is lacking  is  an effective rule-based and adequately  funded  international  lender of  last resort. The IMF  needs to  seriously consider assuming this role, and make changes in the terms and conditions of its financial support facilities,  to better assist countries  affected  by  the crisis  and effectively stabilise the economy and financial markets.