CONCLUSION BRICS BANK
CONCLUSION
The BRICS Development Bank is expected to start operations in 2016, providing a crucial two-year window to state the policies and instruments that would define the scope of its operations. We think the BRICS countries should meet the call to develop an institution that is revolutionary in its vision and the manner in which it functions.
The Bank is expected to not only address developmental challenges within the five countries that are leading it, but also generate greater resources for sustained growth across the global South by harnessing savings from within its membership and mobilizing resources from other middle-income countries and potential supporters.
Towering ambitions for the Bank include the development of an intra-BRICS currency market through measures taken to serve easy conversion of the real, ruble, rupee, renminbi and rand, thereby allowing a diversification of foreign exchange reserves.
Those enthusiastic about the BRICS ability to challenge the current financial system believe the creation of the BRICS reserve currency could challenge the present dependence on the US dollar as the only global reserve currency and is positioned at par with IMFs Special Drawing Rights (SDR).
Thus, the creation and launch of the New Development Bank is very critical to the context of the political and economic disruptions that have come to fore since the crisis of 2008 that has left us economically fragile, politically unstable and accompany new development challenges that require new and innovative thinking and approaches that tackle these fundamentally existent problems. Skepticism about individual competencies and interests within the BRICS notwithstanding, the new Development Bank offers a first institutional apparatus for the emerging economies to construct a more holistic and even radical agenda of development than has been possible in the context of the traditional world order.
Now, it’s crucial that BRICS commit to take this initiative beyond
The BRICS Development Bank is expected to start operations in 2016, providing a crucial two-year window to state the policies and instruments that would define the scope of its operations. We think the BRICS countries should meet the call to develop an institution that is revolutionary in its vision and the manner in which it functions.
The Bank is expected to not only address developmental challenges within the five countries that are leading it, but also generate greater resources for sustained growth across the global South by harnessing savings from within its membership and mobilizing resources from other middle-income countries and potential supporters.
Towering ambitions for the Bank include the development of an intra-BRICS currency market through measures taken to serve easy conversion of the real, ruble, rupee, renminbi and rand, thereby allowing a diversification of foreign exchange reserves.
Those enthusiastic about the BRICS ability to challenge the current financial system believe the creation of the BRICS reserve currency could challenge the present dependence on the US dollar as the only global reserve currency and is positioned at par with IMFs Special Drawing Rights (SDR).
Thus, the creation and launch of the New Development Bank is very critical to the context of the political and economic disruptions that have come to fore since the crisis of 2008 that has left us economically fragile, politically unstable and accompany new development challenges that require new and innovative thinking and approaches that tackle these fundamentally existent problems. Skepticism about individual competencies and interests within the BRICS notwithstanding, the new Development Bank offers a first institutional apparatus for the emerging economies to construct a more holistic and even radical agenda of development than has been possible in the context of the traditional world order.
Now, it’s crucial that BRICS commit to take this initiative beyond