BRICS’ bank : possibilities and constraints

Abstract

Some scholars have highlighted the declining power of the G7 under the leadership of the US and the rising relevance of some underdeveloped countries grouped as “brics” (Brazil, Russia, India, China, and South Africa), which has spearheaded a new hegemony: the creation of a new bank that will function as a development bank. This article aims to show whether or not a brics’ bank is desirable and doable. Our conclusions show that China is the only country among the brics with high growth, foreign international reserves, and current account surpluses. The creation of a new development bank, therefore, depends on China's will to finance other members.