The rise of emerging powers in the global development finance architecture: The case of the BRICS and the New Development Bank

Abstract

Although the ascent of the BRICS and the NDB represents a challenge to the Western-dominated world order, there is little evidence to suggest that the BRICS grouping has intentions to overhaul the current global order. Nevertheless, the decision by the BRICS countries to establish the NDB has not only underscored the growing institutionalisation of the BRICS grouping, it has also potentially heralded the emergence of a counterweight to the traditional international financial institutions. The BRICS grouping is poised to play a key role in reforming the global financial system and in shaping a new development agenda. However, the new regime order that will evolve will not necessarily supplant the Bretton Woods institutions. The degree to which the BRICS countries will be able to assume a global leadership role will be contingent upon their willingness and ability to address their domestic socio-economic vulnerabilities as well as their sometimes conflicting interests and values.