There is a growing recognition that global institutions, on their own, are not able to promote developing countries' interests. This year's UNCTAD report argues that cooperation can significantly strengthen developing countries' efforts to meet the macroeconomic challenges of globalisation. It examines the role that regional monetary and financial arrangements can play in reconciling national needs with international opportunities and constraints. Advantages of such regional cooperation include the following:  

• facilitate progress in trade integration if the management of exchange rates is agreed upon by a regional bloc
• expand the supply of long-term financing through the creation or reinforcement of regional financial institutions
• reduce the vulnerability of the regional partners to the vagaries of the international financial markets

Authors conclude that a successful regional financial cooperation among developing countries would promote improved international monetary order. It could either substitute or be a complement to international institutions.

 Available online at: http://www.eldis.org/cf/rdr/?doc=34000