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Global Power Project: The Group of Thirty and Its Methods of Financial Governance

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  • In the first part of this exposé, I examined the origins and recent history of the Group of Thirty as a highly influential institution in the arena of global financial governance, bringing together top central bankers, financiers, policymakers and academics in the world of economic and monetary affairs.

OCCUPY.com
By Andrew Gavin Marshall
4 December 2013

More than three decades since it was founded in 1978, the Group of Thirty has maintained its reputation as a prominent institution in the financial world, continuing to produce influential reports and advocate for policies which are largely accepted and implemented across the globe.

The G30, as it is often referred to, describes itself as “a private, nonprofit, international body composed of very senior representatives of the private and public sectors and academia” which “aims to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to market practitioners and policymakers.”

In her dissertation on global financial governance, Eleni Tsingou, Assistant Professor at the Department of Business and Politics at the Copenhagen Business School, focused on the role of the Group of Thirty in shaping the global financial system, noting that the G-30 “has had an important impact on financial regulatory and supervisory practices both at the national and global levels...in a way that was consistent with private sector interests.”

She noted, “the G-30 has contributed to the emergence of a mix of public and private authority in global finance and has considerably strengthened the role of private interests in the functions of regulation and supervision.”

By the late 1990s, the G30 had played a central role in the governance of the global financial system – with a very direct role in managing the clearance and settlement of securities and over-the-counter (OTC) derivatives – ultimately directing the course of the debate and the resulting policies of regulation (or lack thereof). The Group of Thirty had thus “found itself in a privileged position at the centre of the financial policy arena.”

The Group went on to have a significant influence on the type of banking regulation set forth through the Basel II process of the Basel Committee on Banking Supervision, run out of the Bank for International Settlements. More specifically, the G-30 was a strong promoter of “self-regulation” and “self-supervision” of the financial markets, or, in other words, granting the banks the authority to "regulate" themselves, which obviously led to disastrous consequences.

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