# Navigating Global Financial System Fragmentation

Convenes a diverse set of stakeholders to define a common set of norms, rules, and principles required to safeguard the integrity of the global financial system during a period of rising geopolitical complexity.

[Learn more](https://initiatives.weforum.org/global-financial-system-fragmentation/about)


## The challenge

States increasingly use the global financial system to advance their geopolitical ambitions, which risks fragmenting the system into discrete blocs. Global finance leaders must grapple with this trend and the increasingly dominant role that geo-economic statecraft, subsidies, and domestic capacity-building play in trade and investment flows, asset returns, and the cost and availability of capital across jurisdictions.Will the global financial architecture adapt along the lines of established norms formed during the post-World War II era, or enter a new chapter, defined by multipolar rules and alliances?


## Our focus areas

The Navigating Global Financial System Fragmentation initiative convenes public and private leaders to develop insights, and engages the public on the impact of fragmentation.


### Convening public and private leaders

Convene leaders to generate actionable solutions, promote cooperation on issues such as anti-money laundering and combating terrorism financing, and identify ways to anchor geo-economic guardrails.


### Engaging the public and building coalitions

Engage the public on the key features of the global financial system and the benefits of continued financial integration, and raise awareness of the tangible costs of fragmentation.


### Building thought leadership and producing insights

Produce insights to inform stakeholders about the risks of politicizing the financial system and the costs of fragmentation, and to bolster the case for the establishment of geo-economic guardrails.


## Our impact

We promote a better understanding of the global financial system, communicate the consequences of fragmentation, and develop policy approaches to safeguard the benefits of financial integration.


## Featured Content

### AMNC China 2024 - Tackling Financial System Fragmentation

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## Guardrails to protect the financial system

The report lays out principles and rules of engagement to establish a framework within which the global financial system can continue to contribute to prosperity while still respecting national sovereignty. The first framework, the Principles to Safeguard the Global Financial System from Fragmentation, establishes the core conditions necessary for maintaining essential financial systems operations and market confidence. The second, the Rules of Engagement for Responsible Economic Statecraft, lays out parameters for policymakers and public-sector institutions to implement geo-economic policies while still ensuring the stable operation of the global financial system.

[Discover more](https://initiatives.weforum.org/global-financial-system-fragmentation/guardrails)


## Featured insights

[Discover more](https://initiatives.weforum.org/global-financial-system-fragmentation/insights)


### The global financial system keeps the world stable and unified. Here's how to strengthen it

Geopolitical tensions threaten to fragment the global financial system, with a potential negative impact of over 5% of global GDP. The World Economic Forum and Oliver Wyman have developed a proposed framework for strengthening the global financial network.

[Read more](https://www.weforum.org/agenda/2023/01/time-to-stem-the-tide-of-fragmentation-davos-2023/)


### Why international finance centres like Hong Kong are crucial connectors in a fragmented world

The global financial system faces an increasing risk of fragmentation from geopolitical tensions and macroeconomic complexities. In the current landscape, international financial centres are crucial to building and maintaining global connection.

[Read more](https://www.weforum.org/agenda/2024/02/pragmatic-cooperation-in-an-increasingly-discombobulated-world/)


### Not all economic statecraft is created equal

The G7's use of financial tools has prompted emerging economies to seek alternatives to the Western-led financial system. The evolving geopolitical landscape highlights the necessity of defining "red lines" in global finance.

[Read more](https://www.weforum.org/agenda/2023/01/fragmentation-imf-tackle-economy-debt-country/)


### Get involved today

Learn about how your organization can engage with the Navigating Global Financial System Fragmentation initiative.

[Get involved](https://initiatives.weforum.org/global-financial-system-fragmentation/get-involved)