Such reforms might include a better legal system to enforce contracts and other property rights, better accounting and disclosure standards as domestic firms compete for foreign funds, and improved prudential supervision as domestic regulators observe the risk-management practices of foreign financial institutions.
I consider the Bretton Woods system very innovative for four reasons: First, with this system international monetary cooperation was for the first time attempted on a permanent and institutional basis. Second, this system respects the principle of national sovereignty while committing members to collective responsibility. Third, it provides a mechanism for inter-governmental consultation.