Thursday, 10 July 2014

China needs to maintain careful balance over BRICS Development Bank

Next week, the sixth BRICS Heads of State summit will take place in Fortaleza, Brazil. As the summit approaches, questions are being asked about the grouping’s capacity to advance reform of global governance. Top of the agenda will be discussions of the soon-to-be-launched BRICS Development Bank.

Since last year’s meeting in Durban, South Africa, the global context has changed significantly, with rising powers playing key roles in some of the major tectonic shifts underway.

First, the crisis that began in Crimea has pushed Russia to deepen its ties to the other BRICS countries in hopes of garnering support for its positions and actions in Eastern Europe, where it vies with the West for influence. 

Second, in the realm of development, the ongoing debates about the post-2015 development agenda, set to replace the Millennium Development Goals, have intensified in several countries and regions, although to differing degrees.  There is growing eagerness among Western stakeholders to better understand the interests and positions of rising powers within these debates, especially in light of the BRICS’ shared resistance to what they perceive to be Northern-led normative frameworks for development. 

Finally, there are new or renewed loci of instability, such as Iraq, which are likely to affect not only the geopolitics of the region, where rising powers have accumulated significant stakes, but also, more broadly, relations among global and rising powers.

In light of this context of rapid change, what resolutions and what degree of resolve will the BRICS summit in Fortaleza generate?

China’s pivotal role amongst the BRICS and the BRICS development bank


Although China is not the only answer to these questions, it has come to assume a pivotal role amongst the BRICS.  In the field of development, the sheer size of its economy and the  global reach of its companies, diplomacy, and diaspora, give it considerable economic and political clout, both within and beyond the BRICS coalition.  In the field of international development, the extent to which China may overshadow the other BRICS will be tested by the launch of the BRICS development bank, which, along with the contingency reserve fund, will represent the first concrete institutional innovation by the BRICS. 

Financially speaking, this investment is but a drop in the bucket of China’s gargantuan South-South development cooperation.  This is not the case for the other BRICS, all of which have experienced some degree of economic growth but also face much greater financial constraints, particularly in light of the recent economic slowdown. 

What, then, are China’s interests in participating in the initiative? 

In my article in the forthcoming IDS Bulletin 'China and International Development...', I argue that the Chinese government’s motivations are primarily political.

In addition to helping the coalition press for speedier reform of development organisations such as the Bretton Woods Institutions, the venture will allow China to further burnish its image as a willing multilateralist player in the field of development and to reinforce its frequent claim that it is working in solidarity with other developing countries, rather than acting as a lone-wolf rising power.  Nurturing this role has become increasingly important for Chinese ruling elites given the common perception that China has relied heavily on bilateral ties in consolidating its South-South cooperation in Asia, Africa, and Latin America.

In order to reap the political benefits of this initiative, however, China has to maintain a careful balance so as not to dominate the bank, as doing so could underscore the asymmetries it brings to the coalition. Unfettered protagonism by China would risk delegitimising the BRICS as a multilateral effort, which was designed to accelerate the shift towards a more multi-polar configuration of the international system.

A balanced bank governance structure, in which all five coalition members have equal representation and equal say, will be essential in maximising the bank’s potential not only in addressing the financing gap in infrastructure and industrial policy, but also making it into an important platform through which to decide upon the rules of development cooperation. This will also be a chance for the BRICS to prove their capacity to generate innovative solutions to socio-economic issues that are dear to all of the grouping members, such as poverty alleviation, sustainable development, and inequality reduction.

Adriana Abdenur is a Professor at the Institute of International Relations, Pontifical Catholic University of Rio de Janeiro (PUC-Rio) and a researcher at the BRICS Policy Center. She is a contributor to the forthcoming IDS Bulletin ‘China and International Development: Challenges and Opportunities’, which can be pre-ordered online.

23 comments :

Anonymous said...

As the author states: "In order to reap the political benefits of this initiative, however, China has to maintain a careful balance so as not to dominate the bank, as doing so could underscore the asymmetries it brings to the coalition. Unfettered protagonism by China would risk delegitimising the BRICS as a multilateral effort, which was designed to accelerate the shift towards a more multi-polar configuration of the international system." Hasn't China already set off alarm bells among other BRICS members when China's proposal that it would fund $41 of the $100 Billion start-up capital for the BRICS bank was rejected over concern China was going to maintain excessive influence? It seems China failed to gauge the feelings in the room and that it still has some ways to go in better identifying with other nations as opposed to trying to use them as window dressing.

Hill said...

Dominate your Competition in Google with our Premier SEO Services. Experienced Melbourne SEO Consultant servicing clients all over Australia seo consultant

dong dong23 said...

nike air max
reebok classics
converse outlet
vans store
michael kors outlet online
vans for sale
longchamp handbags
jordan shoes
mac cosmetics outlet
coach outlet store online clearances
2017.5.15chenlixiang

Wulan Rania Putri said...

Sharing Obat Scabies with Agen Resmi QnC Jelly Gamat DKI Jakarta Answer Cara Menaikkan HB Darah right Obat Benjolan Kecil di Buah Zakar Thank you...

Muhammad Mughni said...

Visit Obat Kandidiasis something Obat Payudara Nyeri dan Bengkak Thank you...

Ressy Novitasari said...

Visited Obat bell's palsy think Obat abses payudara Thank you...

jujun dai said...

Know Obat liver bengkak behind Obat anyang anyangan Thank you so much...

green world said...

Hey Obat benjolan kecil di kepala going Obat luka bernanah agar cepat kering last Obat Benjolan Di Leher Thanks...

azmi said...

6 Makanan yang bermanfaat bagi penderita osteopororsis

Maskeran Wajah Yang Alami Untuk Menjaga Dan Membersihkan Kulit said...

Thanks for the information you have provided, It is very helpful. Please improve again

Maskeran Wajah Yang Alami Untuk Menjaga Dan Membersihkan Kulit
Obat Oles Herbal Untuk Infeksi Dibagian Tulang Secara Alami

Apriliansyah Raka said...

Visit my blog Cara Mengobati Panu yang Sudah Parah dan Menyebar free Obat Rematik will Obat Kencing Nanah Thank you very much...

Muh Umar said...

Sharing Obat flu tulang hear Obat radang saluran empedu know Obat Miom Thank you...

wildan herbal said...

Sharing nih Obat amandel from Obat keputihan gatal dan bau tidak sedap know Obat Gagal jantung kongestif Thank you...

shinta permatasari said...

Sharing Obat cairan di paru-paru full Obat penghancur batu ginjal write Obat jantung bengkak Thanks...

Obat Infeksi Saluran Kemih said...

Share nih Obat asam lambung naik ke dada just Obat kencing Perih stay Obat bekas kurap Thank you..

arief shop said...


Obat Forex Bandung
Obat Forex Asli Bandung
Jual Obat Forex Bandung

Obat luka gangren said...

Visit Obat peningkat trombosit almost Obat kencing batu believe Obat Gudik Thank you...

Obat Limpa Bengkak said...

Visit my blog Obat benjolan tumor nice Obat luka bakar good Obat jerawat batu Thank you..

lionel abi said...

nice post friend , Thank you for sharing with us, and we sincerely hope you will continue to update or post other articles
cara menyembuhkan luka iritasi di sudut bibir,

Obat ginjal bengkak said...

Share it Obat Bintik Bintik di Vagina many Obat gudik yang sudah parah think obat luka gangren diabetes smal Obat kusta list Obat penghancur batu kandung kemih Thanks...

Obat bisul di bokong said...

Sharing uuy Obat benjolan dibawah telinga talk Obat Lambung Perih dan Panas window Obat BAB Keras dan berdarah know Obat bentol di kelamin Thank you..

Obat kelenjar getah bening di leher said...

Sharing uye Obat tenggorokan gatal long Obat pembuluh darah pecah short Obat luka tersiram air panas make Obat emboli paru Thank you very much,,

Obat varises said...

Sharing euyyy Obat penyakit difteri keep Obat Luka Bakar calm Obat asam lambung naik ke dada good Obat radang tenggorokan dan sariawan because Obat kanker bengkak karena luka Thank you so much,,