The total risk of more traditional financial products has been broken into component parts and repackaged into synthetic products that have risk profiles similar to other financial instruments. The synthetic products can then be sold to those domestic and global investors willing and able to bear the associated risks.
Here, it does not seem adequate either to think of a single “universal institutional framework,” but of useful principles such as autonomy and accountability that should be adapted to the institutional reality of each individual country. In the past years, macroeconomic discipline has been strengthened and thus the region is better prepared to face adverse scenarios than in the past decade.