Yes, they can: Bank on BRICS to shake up world order

  • Hindustan Times
  • Updated: Jul 17, 2014 01:27 IST

New acronyms sometimes signal change in international affairs. In announcing the creation of New Development Bank (NDB) at the BRICS Summit in Fortaleza, the leaders of Brazil, Russia, India, China and South Africa have put to rest the myth that emerging powers cannot act in concert for long and build institutions of global significance. The BRICS nations have long complained about western dominance of economic institutions like the World Bank and International Monetary Fund. Since the financial crash in 2008, they have pushed for greater voice and representation as part of the wider reform of the global governance architecture. The creation of the NDB is an immensely significant step by BRICS nations to develop alternative financial institutions that serve their own policy priorities and interests better. The NDB, with an initial authorised capital of $100 billion, will fund infrastructure and sustainable development projects in BRICS nations and developing economies. BRICS leaders have also agreed on a Contingent Reserve Arrangement (CRA), worth $100 billion, to act as a safety net for countries to tackle short-term liquidity pressures and enhance their financial stability. The leaders have shown remarkable perspicacity in setting aside their own aspirations for control and agreed on an equitable power-sharing structure.

There is a great degree of commendable urgency in the Fortaleza Declaration that the leaders have signed. They want to develop a roadmap to raise economic cooperation within the group to a ‘qualitatively new level’. To that end, the Fortaleza Action Plan envisages intensive contact among BRICS ministers, national security advisers, sherpas and senior officials across various ministries and sectors.

Critics will contend that BRICS adopts predictable positions on political questions and does not pull its weight as a group in addressing the pressing challenges of the day such as the crises in Iraq, Syria and Israel-Palestine. That is a reflection of the lack of consensus within the group — and a firm reiteration that the leaders envisage BRICS as essentially as a vehicle that focuses on economic deliverables for now. At a time when decisive leadership is hard to find on the world stage, as the United States looks inward and groups like the European Union experience internal discord, BRICS leaders have done well to take a genuine crack at fixing a broken economic system. Their improved coordination through intensive engagement could be the game-changer for world politics.

From Around the Web
Sponsored by Revcontent

also read

Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome