Sunanda Sen / The BRICS Initiatives Towards a New Financial Architecture: An Assessment with Some Proposals
Sunanda Sen
It is heartening to observe that developing countries, led by China and other BRICS members have been successful to organise alternative sources of credit flows . aiming for financial stability, growth and development . Setting a goal to avoid the IMF type of loan conditionalities and the dominance of US dollar in global finance, these new institutions provide a much needed turn in the global financial architecture, especially in the background of the on-going demands for austerity as are currently imposed on Greece by the troika of IMF, the ECB and the EU. It is rather ironic that the Western financial institutions as well as the EU are not in a mood to provide any option to Greece short of complying with the disciplinary measures as a pre-condition for Greece to continue with the Eurozone and its common currency, the Euro .
Limitations of the on-going global financial architecture at command of the IMF and its member nations in the OECD brings to the fore the need for new institutions which can provide alternative solutions. The launch of the financial institutions by the BRICS seem to chart out an alternative route which may turn out as superior in achieving a superior global financial order.