E2B: Strategic Objective E2B
Improve the Stability of the International Financial System Other Information:
Treasury is committed to improving the stability of the international financial system in order to prevent crises, and to
minimize the impact of those that do occur. Financial crises in developing and emerging markets can undo the benefits of years
of economic progress, throw millions into poverty, create political instability, and may require expensive international intervention.
By continuing to build a more stable international financial system, Treasury will enhance the conditions necessary for growth
and improved standards of living through the developing and emerging markets. International Financial Institutions (IFIs),
such as the International Monetary Fund (IMF), the World Bank, and other multilateral development banks (MDBs), play a key
role in enabling global economic growth and stability. They must use their resources in the right places, at the right times,
and for the right reasons. The U.S. is a major stakeholder in the IFIs and contributes a significant portion of their resources
toward the broader objectives of U.S. international economic policy. The Treasury Department has the responsibility for ensuring
that the institutions appropriately use the resources the U.S. contributes. The Treasury Department works with other nations
and the leaders of these institutions to help strengthen the IFIs’ effectiveness by encouraging and guiding implementation
of key reforms. Through these reforms, the IFIs can better ensure that they use the funds in the most effective manner, in
the countries where they will have the most impact, thereby encouraging the most sustainable and stable development activities
and delivering measurable results for their sponsors.
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