BRICS and China Initiated Global Trade Initiatives and Financial Institutions: Alternatives to the US-Dominated IMF and WBG and ADB

Abstract

The BRICS nations are reshaping the global financial and trade systems. China formed the Asian Infrastructure Investment Bank (AIIB) as an alternative source of funds for infrastructure investment in Asia. To wean its reliance on the developed countries’ markets and to enhance economic growth, China initiated the “One Belt, One Road” framework, reviving the ancient Silk Road trade routes to Europe by road, railway, and sea. To improve the countries’ economic prospects that are located along the route, China set up the Silk Road Fund (SRF) to invest in these countries industries. The BRICS countries—Brazil, Russia, India, China, and South Africa—established the New Development Bank (NDB) and Currency Emergency Reserve (CER), respectively, investing in high technology industries/infrastructures and weathering temporary currency issues.