A Study of the BRICS Bank from the Perspective of Global Financial Governance

Journal of China and International Relations. 2014;2(2):50-57 DOI 10.5278/ojs.jcir.v2i2.939

 

Journal Homepage

Journal Title: Journal of China and International Relations

ISSN: 2245-8921 (Online)

Publisher: Aalborg University Press

Society/Institution: Aalborg University

LCC Subject Category: Political science

Country of publisher: Denmark

Language of fulltext: Chinese, English

Full-text formats available: PDF

 

AUTHORS

Bo Peng

EDITORIAL INFORMATION

Double blind peer review

Editorial Board

Instructions for authors

Time From Submission to Publication: 30 weeks

 

Abstract | Full Text

The transition of the global financial governance system is a history of the rise and fall of the Western advanced countries in the post-war international political and economic system. Since the end of the Second World War, the International Monetary Foundation and the World Bank have always taken the dominant role in the field of global financial governance. However, after the beginning of the global financial crisis in 2008, many drawbacks have become apparent concerning these two significant institutions, such as the lack of representatives, the slow and ineffective response to the crisis, etc. Following a strong appeal from the developing countries (with the emerging powers as their representatives), the global financial governance system has experienced several rounds of reforms which have yet to yield acceptable results. Therefore, it is highly necessary to create a new institution which can play a complementary role in the existing financial governance system rather than overthrow it. Complying with the tide of history, the official establishment of the BRICS Bank can be of great significance to the reform of current global financial governance systems such as diversifying the global financial governance bodies, representing the interests of developing countries in a better way, enhancing the status and improving the importance of emerging economies in the international political and economic order. Admittedly, the BRICS Bank also faces great challenges and limits such as the lack of a core leadership and the absence of a unified currency, etc.