BRICS’s Challenge with US Controlled World Financial Structure

Document Type : مقالات

Authors

• Seyyed Saeed mirtorabi Hosseini ¹
• Sayyd Mohammad Hadi mosavi ²

¹ , Kharazmi University

² Kharazmi University

https://doi.org/10.22067/ijip.v8i1.68522

Abstract

Abstract
United State emerged as a major economic and financial power after World War II and shaped a new order for institutionalization of world trade and financial exchanges which called Bretton Woods. During past decades, many changes have occurred in economic and trade structures of the world which has been accelerated after financial and economic crisis in 2008, but it seems that these changes have not translated in current global financial structure completely. BRICS as an emerging economic and financial block has challenged Bretton Woods institutions and strengthened the possibility of shaping new order in global finance. This article, studies how BRICKS has challenged current western based world financial structure. The article shows that BRICS group as China based club, by making new multilateral institutions and procedures and struggle for reinforcing its presence in Bretton Woods institutions not only has weakened US structural power in global finance, but has strengthened its position in this era.

Keywords

• BRICS
• financial structure
• China
• United State
• Bretton Woodes

References

References

Abdenur, A. E. (2014). China and the BRICS development bank: legitimacy and multilateralism in south–south cooperation, IDS Bulletin, 45(4), 85–101.

Agarwal, M. (2015) Reconfiguring International Financial Institutions: The BRICS Initiative, Research and Information System for Developing Countries, May 196.

Aghili, H., & Mosaebi, M. (2016). United States, Middle East Shale and Technology, Tehran, Ministry of Foreign Affairs. (in Persian)

Babb, S. (2013). The Washington Consensus as transnational policy paradigm: Its trajectory and likely successor, Review of International Political, Economy, 20(2), 268-297.

Balaam, D., & West, M. (2013). the International Political Economy, (translation by Ahmad, S. Abdolmajid, S) Tehran. Gomes Publication. (in Persian)

Beeson, M., & Zeng, J. (2018). The BRICS and global governance: China’s contradictory role. Third World Quarterly, 39 1962-1978.

BRICS Fourth Summit, (2012, 29 March). Delhi Declaration.29 March2012. Available at:

http://www.brics5.co.za/about-brics/summit-declaration/fourthsummit/.

BRICS finance ministers, (2011, 22 September). BRICS finance ministers’ joint communique. Washington DC, 22 September. Available at: http://www.brics.utoronto.ca/docs/110922-finance.html.

Bustani, R., & Jabal Ameli, P. (2015). Evolving the role of the IMF in the global economy, Journal of Ravand. 3(6). 97-116. (in Persian)

Chen, N. (2014, July 23). Reason of the BRICS New Development Bank. July 23, at: http://thediplomat.com/2014/07/3-reasons-the-brics-new-development-bank-matters/.

Chow, D. C. K. (2016). Why China Established the Asia Infrastructure Investment Bank. Vanderbilt. Journal of Transnational Law, 49. 1255-1298.

Ebrahimi Nejad, M. (2015). International Financial and Political Organizations, Thirteenth Edition, Tehran, SAMT Publication. (in Persian)

Eichengreen, B. (2014, August 13). Banking on the BRICS. Project Syndicate, August 13.at: https://www.project-syndicate.

Financial Times, (2015 June). U. S. Congress Pushed China into Launching AIIB, says Bernanke, at:

https://www.ft.com/content/cb28200c-0904-11e5-b643-00144feabdc0

Follath, E., & Hesse, M. (2014, February7). Troubled Times: Developing Economies Hit a BRICS Wall, Spiegel International. Online. Available at: http://www.spiegel.de/international/world/economy-slows-in-brics-countries-asworries-mount-a-951453.html

Fourcade, M. (2013). The material and symbolic construction of the BRICs: Reflections inspired by the RIPE Special Issue, Review of International Political Economy, 20(2), 256-267.

Ganbar loo, A. (2006). Hegemonic Stability in the Economic Strategy-US Government. Strategic Studies Quarterly, Ninth Year, 4(34). 899-858. (in Persian)

Glosny, M. A. (2009). China and the BRICs: a real (but limited) partnership in a unipolar world, Journal of Polity. 42(1), 100–29.

Griffith, J. (2015). Financing global development: the BRICS new development bank, German Development Institute.

Guzzini, S. (1998). Realism in international (Relations and international political Economy: continuning story of a death foretold (London and New York: Rutlege).

Hounshell, B. (2011, february21). Brics: A short history. Foreing policy magazine february21,2011 http://foreignpolicy.com/2011/02/21/brics-a-short-history/

Hudson, M. (2003). Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance, Pluto Press.

Humphreyet et al., (2015). Multilateral development banks in the 21st century”Overseas Development Institute at:

http://www.egmontinstitute.be/content/uploads/2017/06/170629-new-multilateral-structures-global-order.pdf?type=pdf

IMF, (2014). IMF Members’ Quotas and Voting Power, and IMF Board of Governors, [online] Available at:

http://www.imf.org/external/np/sec/memdir/members.aspx#U.

IMF, (2010). Illustration of Proposed Quota and Voting Shares.at: http://www.imf.org/external/np/sec/pr/2010/pdfs/pr10418_table.pdf.

IMF, (2013 April17). World economic outlook,April data, Retrieved. http://en.rfi.fr/economy/20180727-bric-china-india-russia-brazil-south-africa-putin-xi-modi-ramaphosa-trump-trade

IMF, (2017). IMF Members' Quotas and Voting Power, and IMF Board of Governors.

http://www.imf.org/external/np/sec/memdir/members.aspx

Indianexpress.com, (2016, 7 October). BRICS Contingent Reserve Arrangement Operational: Finance Minister Arun Jaitley, 7 October 2016, at: http://indianexpress.com/article/india/india-news-india/brics-contingent-reserve-arrangement-operationalfinance-minister-arun-jaitley-3070448/ on 2 May 2017.

International Monetary Fund, (2010). IMF Members' Quotas and Voting Power, and IMF Board of Governors.

http://www.imf.org/external/np/sec/memdir/members.aspx

James, H. (2008). The Rise of the BRlCs. International Economy, 3:22.

Kohen, T. H. (2013). Global Political Economy: Theory and Application. (Translation by Paygami, A. Rishman chian, T. Risman chian, M. Tehran, Imam Sadiq University. (in Persian).

Kralikova, K. (2014). BRICS: Can a marriage of convenience last? European View, 13(2), 243-250

Lewis, J., & Trevisani, P. (2014, July 2014). Brics Agree to Base Development Bank in Shanghai. The Wall Street Journal, Retrieved 16 July 2014.

Mehrnews. (2017). The share of the dollar in the currencies of the countries fell / increased the share of the euro. (in Persian)

http://www.mehrnews.com/news/3865224/

Mielniczuk, F. (2013). Brics in the Contemporary World: changing identities, converging interests, Third World Quarterly, 34(6),1075-1090.

Ministry of External Relations of Brazil, (.2015 July15). Treaty for the Establishment of a BRICS Contingent Reserve Arrangement- Fortaleza, July 15, Art. 2(a), accessed at:

http://brics.itamaraty.gov.br/media2/press-releases/220-treaty-for-theestablishment-of-a-brics-contingent-reserve-arrangement-fortaleza-july-15 on 4 May 2017.

Cattaneo, N.; Biziwick, M., & Fryer. D. (2015, March10) The BRICS Contingent Reserve Arrangement and its Position in the Emerging Global Financial Architecture, South African Institute for International Affairs, Policy Insights.at:

https://saiia.org.za/research/the-brics-contingent-reserve-arrangement-and-its-position-in-the-emerging-global-financial-architecture/

Pape, R. A. (2005). Soft Balancing aginst the united states. International Security, 30(1),7-45.

Sa'i, A., & Torabi, Q. (2010). The theory of hegemonic stability and crisis in the global economy. Quarterly Journal of Policy, 40(4), 143-160. (in Persian)

Sanaei, M., & Abadi. G. E. (2013). The emerging Brics Economic Powers: Goals, Capabilities, Its Position in the Current International System. Journal of World Studies, 3(1), 1-40. (in Persian)

Schirm, S. A. (2010). Leaders in need of followers: Emerging powers in European Journal of International Relations, 16(2), 197-221. global Governance

Sen, S. (2015). The BRICS in the current global conjuncture, Levy Economics Institute of Bard College, Policy Note. New Delhi.

Shafiei, N., & Vekmatazade, Y. (2010). Explaining China-US Relations Against the Shanghai Cooperation Organization Based on the Soft Equilibrium Theory. Central Eurasia Studies, National and International Center for Studies, 7(3), 76-51. (in Persian)

Sherkhani, M. A., & Ghanbarlu. A. (2008). American Commercial Hecticism: Post-Cold War Conditions. Quarterly Journal of Policy, 38(3), 167-187 (in Persian)

Jonas, S. S. (2014). BRICS and a New World Order. Master’s thesis in Political Science Trondheim, Department of Sociology and Political Science,spring

Spyros A. R., & Gabriel, V. D. (2014). BRICs in the global economy under the prism of economic nationalism of IPE. International Journal of Economic Sciences & Applied Research, 7(1),7-143

Stiglitz, J. (2008). Globalization and its issues, (translated by Hasan Golriz), Tehran, publication of Ney. (in Persian)

Stuenkel, O. (2013b). Towards stronger intra-BRICS trade? Post-Western World.blog11 June. Available at:

http://www.postwesternworld.com/2013/06/11/towardsstronger-intra-brics-trade/

Teqizadeh Ansari, M. (2016). The Challenge of the Asian Investment Bank and the Economic and Financial Hegemony of Asia, International Journal of Quarterly Journal, 5(3), 147-176. (in Persian)

Tsingou, E. (2014). Club governance and the making of global financial rules. Review of International Political Economy, 22(2), 225–56.

Ujvari, B. (2017). New Multilateral Structures in Focus. Marten Center for European Studies.

Walt, S. M. (2004). Can the united states be Balanced? Annual meeting of the American Political science Association.

Weis, M. A. (2017). Asian Infrastructure Investment Bank (AIIB), Congressional Research Service, 1-32 at:

https://fas.org/sgp/crs/row/R44754.pdf

Weisbrot, M., & Jake, J. (20 16, 2016 April). Voting Share Reform at the IMF: Will it Make a Difference? Center for Economic and Policy Research.at: http://cepr.net/images/stories/reports/IMF-voting-shares-2016-04.pdf.

Wheeldon, T. (2018). BRICS countries form 'anti-Trump front' on trade, wikipedia.org/wiki/BRICS “BRICS (The Countries of The Future) http://www.youtube.com/watch?v=doSkB_rlzHg.

Williamson, J. (2012 September 29). The Dollar and US Power. Peterson Institute for International Economics Paper presented at the conference, Currencies of Power and the Power of Currencies. organized by the International Institute of Strategic Studies in Bahrain from.

Williamson, P. J. (2012). How and Why a U.S. Sovereign Debt Crisis Could Occur. Economic Journal Watch, January, 71-77.

World Bank IBRD Voting Power Realignment report, (2010). WBG. at: http://siteresources.worldbank.org/NEWS/Resources/IBRD2010VotingPowerRealign mentFINAL.pdf

World Bank Reforms Voting Power report (2010, April 2010) Gets $86 Billion Boost. (press release). at:

http://www.worldbank.org/en/news/pressrelease/2010/04/25/world-bank-reforms-voting-power-gets-86-billion-boost.