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The Monterrey Consensus recognized the need to address systemic issues and strengthen the international monetary and financial systems in support of development, including emphasizing that reforms to the international financial architecture should aim at poverty eradication.

The 2008 world financial and economic crisis highlighted significant systemic flaws in the financial system. Since the crisis, important reforms have been put in place to improve the functioning, stability and resilience of the international monetary and financial system. The global financial safety net has been strengthened, new coordination mechanisms have been established, and regulatory reforms have been initiated. However, vulnerabilities remain in the banking system and international capital flows continue to be extremely volatile. Systemic shortcomings, structural flaws, regulatory gaps, barriers and misaligned incentives continue to pose risks to financial and economic stability. Furthermore, the financial system does not adequately allocate resources to areas critical to sustainable development, such as infrastructure, small and medium-sized enterprises (SMEs), and financial services for all.

To achieve the post-2015 development agenda, the international financial system needs to intermediate credit toward sustainable development in a stable manner. Ultimately, stability and sustainability are mutually reinforcing: long-term investment should contribute to a more stable financial and monetary system, while without a stable system, the post-2015 development agenda risks being derailed by future crises.This session will explore how the Third International Conference on Financing for Development can help strengthen the international and monetary and financial system in support of sustainable development.