One of the characteristics of globalization has been the markedvolatility of financial flows. The realization that this was affecting growth andequity induced the International Conference on Financing for Development,held in Monterrey in 2002, to adopt a global commitment to deal with theissue of development financing. Since then there has been a mixture ofprogress, backsliding and inaction. This article conducts a brief review offinancial globalization and the current global crisis. It then examines theMonterrey Consensus, the evaluations by the United Nations Secretariatof compliance with the commitments accepted, and the financial systemreforms needed to make globalization more equitable. It then proceedsto a stocktaking of the progress made under a North-South collaborationinitiative, Action against Hunger and Poverty, in applying "innovativefinancing mechanisms" that can contribute to attainment of the MillenniumDevelopment Goals and help developing countries cope with criticalsituations like the current global recession. It concludes with proposalsfor dealing with the challenges that remain.