Global Economic Governance: Russia's Strategic Transition from West to BRICS

Abstract

The period since 1944, the end of Second World War have lead to emergence of multilateral agencies and institutions of Global Governance: The United nation Security Council, Bretton woods institutions -- IMF and World Bank, General Agreement on Tariff and Trade etc. for the promotion of economic and political interest of the allied nations for decades to come. These Institutions both governmental and civil have been working effectively to promote the interest that they represent, but none can represent the interest of the world as a whole which is facing problem of political and economic instability and unsustainable development. The present study attempts to explain the viability of sanctions imposed by supranational geopolitical block European Union (EU) and United Nations as a result of Russia’s annexation of Ukraine. The sanctions were countered by Russia imposing ban on imports from many European nations which will lead to decline in GDP of Russia by 1% and its imports by 9% in 2014. The restrictive trade of Russia with western nations may lead to shift in strategic partners to the emerging economies of BRICS which account for 42% of world’s population and a quarter of world’s economy. This shift will enhance bilateral and multi-lateral trade among BRICS’s nation with respect to oil supply, scientific and technical cooperation, defense and finance leading to increase in joint ventures and licensed production.