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Title: BRICS states new development bank: challenges and controversies for the global political economy system
Author: Evaghoras L. Evaghorou
Address: Department of International and European Studies, School of Economics, Business and International Studies, University of Piraeus, 126, Gregoriou Lampraki Str., 18532, Piraeus, Greece
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.
Keywords: 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.
Int. J. of Diplomacy and Economy, 2016 Vol.3, No.1, pp.59 - 74
Submission date: 18 Jun 2015
Date of acceptance: 23 Nov 2015
Available online: 19 Sep 2016