BRICS states new development bank: challenges and controversies for the global political economy system. (2016)

• Record Type: Journal Article
• Authors: Evaghorou, Evaghoras L.
• Is Part Of: International journal of diplomacy and economy. Volume 3:Number 1(2016)
• Page Start: 59
• Page End: 74
• Publication Date: 2016
• Subjects: BRICS countries -- New Development Bank -- NDB -- contingent reserve arrangement -- CRA -- global political economy -- International Monetary Fund -- IMF -- United States -- USA -- World Bank -- Brazil -- Russia -- India -- China -- South Africa; International economic relations -- Periodicals; Diplomacy -- Periodicals; 337.05
• Languages: English
• ISSNs: 2049-0887

Abstract

The BRICS states, as rising economic and political powers, have agreed to create a new development bank (NDB) and a contingent reserve arrangement (CRA) in order to safeguard their national interests in the global political economy. Their policies aim to raise doubt the dominance of the USA in the global economic system and change the status quo. This article reviews the historical framework and the specific characteristics of the newly founded BRICS financial institutions. The article seeks to highlight the reasoning behind the strategic choices of those states. Moreover, the analysis of their objectives through the foundation of NDB and CRA will provide useful insights on the competition with the traditional western economic institutions, such as the IMF and the World Bank.