The Brics and the Financing Mechanisms They Created: Progress and Shortcomings (Anthem Frontiers of Global Political Economy and Development)
Synopsis "The Brics and the Financing Mechanisms They Created: Progress and Shortcomings (Anthem Frontiers of Global Political Economy and Development)"
The book provides an assessment of the first 12 years of BRICS cooperation, from 2008 to 2020, focusing on international financial governance issues and especially on the new financing mechanisms created by the BRICS, the BRICS monetary fund and the development bank. It is shown that Brazil, Russia, India and China, joined later by South Africa, share common traits that led them to cooperate in the reform of the existing international financial architecture, especially the G20 and the IMF. After 2012, in light of the difficulty of having the USA, the European and other advanced countries agreed to move from “tinkering at the margins” to fundamental reform of the Bretton Woods institutions. The BRICS took the momentous decision to establish their own monetary fund, named the BRICS Contingent Reserve Arrangement (CRA), and their own development bank, named the New Development Bank (NDB). The book goes on to describe the difficult negotiations among the BRICS between 2012 and 2014. Some of these difficulties revealed the weaknesses that would lead the CRA and the NDB to make slow progress in the first five years of their existence, from 2015 to 2010. The book provides an overview of the strong points and weaknesses of the initial phase of these financing mechanisms. While they still hold promise, much remains to be done to make the BRICS financing mechanisms fulfill their founders’ plans and intentions. The book ends with a brief discussion of the future of the BRICS as a cooperation mechanism, highlighting that, despite inevitable and foreseeable obstacles, joint action by the five countries is likely to remain an important feature of the international landscape in the decades to come. The book may be of interest to multiple audiences as it lies at the intersection of economics, international relations and geopolitics. Written in accessible language, avoiding jargon, the book is targeted not only at specialists but also at non-specialists interested in these areas of knowledge and changes in the international economic and financial landscape at the outset of the twenty-first century.
