- Joined
- Mar 10, 2012
- Messages
- 1,895
- Points
- 0
A Seminal Shift In Global Power?
BRICS takes on the developed economies with it's own Development Bank
Few would have expected the Bric acronym – initially put forward in 2001 as an investment concept – to have inspired real-world alliances.
But Brazil, Russia, India and China, recently joined by South Africa, are increasingly adding diplomatic ambitions to their economic assertiveness.
The need for the bank is fairly obvious if you look at the growing trade among the BRICS countries and the frustrations these countries have
had with existing development financing institutions like the World Bank and the IMF.
The establishment of the BRICS Development Bank will be an important milestone for the BRICS grouping as it would add credibility, substance
and ownership to the BRICS concept as the first institution coming out of this club.
The new bank would also “cement” the BRICS spirit of co-operation by giving a tangible institutional foundation.
Although the scope of the bank’s activities will initially be limited, this could be expanded rapidly as situation dictates to rival that of the established
financial institutions.
Could this then be the beginning of the end of an era of Western financial dominance in the World Bank, IMF and … maybe, even the emergence of
a new reserved currency to rival that of the US dollar?
BRICS takes on the developed economies with it's own Development Bank
Few would have expected the Bric acronym – initially put forward in 2001 as an investment concept – to have inspired real-world alliances.
But Brazil, Russia, India and China, recently joined by South Africa, are increasingly adding diplomatic ambitions to their economic assertiveness.
The need for the bank is fairly obvious if you look at the growing trade among the BRICS countries and the frustrations these countries have
had with existing development financing institutions like the World Bank and the IMF.
The establishment of the BRICS Development Bank will be an important milestone for the BRICS grouping as it would add credibility, substance
and ownership to the BRICS concept as the first institution coming out of this club.
The new bank would also “cement” the BRICS spirit of co-operation by giving a tangible institutional foundation.
Although the scope of the bank’s activities will initially be limited, this could be expanded rapidly as situation dictates to rival that of the established
financial institutions.
Could this then be the beginning of the end of an era of Western financial dominance in the World Bank, IMF and … maybe, even the emergence of
a new reserved currency to rival that of the US dollar?
