Joseph Stiglitz, Nobel Laureate in Economics 2001; Professor, Columbia University

The IMF must contribute to the stability of the global financial system. In the restructuring of sovereign debt, it is necessary to ensure that the private sector can receive preferential treatment. At the same time, the IMF should adjust its policies on additional charges and interest rates for loans.

The Bretton Woods system reshaped the financial system after World War II; it was a very pragmatic financial system, but the original concept had significant problems, leading to many disastrous consequences. It wasn't until recent years that the IMF called for strategic structural reforms to the entire system. The global economic and financial crises that have occurred repeatedly since 2008 indicate that we do not yet have a good global financial system. We need a new Bretton Woods system.

There are two areas where the IMF needs to reform:

First is the architecture for sovereign debt restructuring. During the process of sovereign debt restructuring, efforts should be made to design debt contract terms to ensure that the private sector receives preferential policies. A lot of money has poured into developing countries, but where did the money go? Did it go to the private sector? If the interest rates for these private sector borrowers are reduced to an appropriate level, the probability of insolvency would be greatly reduced. On the contrary, if the interest rates remain at a relatively high level, then the probability of default will be higher.

Second is the IMF's policy on charging for loans. The interest rates and fees charged by the IMF for lending are very high, with rates reaching 8%. At such a high rate, the IMF is not actually contributing to stability. These additional charges and interest rate policies should be adjusted; they should encourage the private sector to participate and cooperate, rather than imposing extra charges.