Digest Finance
 

The BRICS Efforts to Modify the International Monetary and Financial System

Vol. 24, Iss. 4, DECEMBER 2019

PDF  Article PDF Version

Received: 24 June 2016

Received in revised form: 30 July 2016

Accepted: 19 August 2016

Available online: 25 December 2019

Subject Heading: MONETARY AND CREDIT RELATIONS

JEL Classification: F33, F34, F53

Pages: 448–465

https://doi.org/10.24891/df.24.4.448

Leksyutina Ya.V. Saint-Petersburg State University, St. Petersburg, Russian Federation
lexyana@ya.ru

ORCID id: not available

Subject As a platform for innovative dialogue, the BRICS focuses its efforts to expand opportunities of its member countries for elaborating and taking global economic decisions. The article discusses the BRICS activity for stimulating changes in the global monetary and financial systems.
Objectives The research describes the BRICS attempts to change the global monetary and financial system, which is not quite compliant with the emerging economies' interests, thus restraining their further economic advancement.
Methods The research relies upon a systems approach, institutional methodological approach, principle of historicism and method of statistical analysis.
Results The article demonstrates that the BRICS representation and the role of its members in the IMF and World Bank fail to match their increased economic influence. I also evaluated the World Bank and IMF reforms initiated in 2010, reviewed principles of new monetary and financial institutions of the BRICS, determined further measures the BRICS should undertake to promote changes in the global monetary and financial system.
Conclusions and Relevance Developed economies of the West are very reluctant to rearrange the global monetary and financial system and strengthen the role of emerging economies in the process of making decisions on global economy management. This is the reason why reforms of the governance system and allocation of quotas significantly stalls in the IMF and World Bank. The BRICS efforts pursue improving the existing system, making it more efficient, stable and fair, aligning it with ongoing global developments concerning the economic power of developed and developing economies, neutralizing a majority of the Western countries and the pro-Western inclination of the leading international financial institutions.

Keywords: BRICS, IMF, World Bank, New Development Bank, international monetary system, international financial system

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