The future of the BRICS and its Strategic Implications for the Global Monetary and Financial Order

Ahmadi, Hossein; Riazi, Mahdi

The future of the BRICS and its Strategic Implications for the Global Monetary and Financial Order

Document Type : Original Article

Authors

Hossein Ahmadi ¹
Mahdi Riazi ²

¹ M.A., Department of International Business Management, Faculty of Management and Accounting, Allameh Tabatabai University, Tehran, Iran

² Ph.D., Department of Production Management, Faculty of Management and Accounting, Allameh Tabatabai University, Tehran, Iran.

Abstract

The existing order of the world economy is maintained through various international institutions. For instance, the International Monetary Fund and the World Bank, as well as the dominance of the dollar and SWIFT in the monetary system and international payments, play a crucial role in the existing world order. However, their performance has come under increasing criticism in recent years. On the other hand, there have been efforts to reform the international monetary and financial order through various coalitions, among which the BRICS and its associated monetary and financial institutions can be seen as a competing and modulating approach to the existing monetary system.
This article, through utilizing the library and field methods such as conducting interviews and questionnaires attempts investigate the political and economic strengths of the BRICS, as well as the challenges facing this bloc in forming an economic alternative and effective international monetary and financial order in the future. The result of the research show that the BRICS has the ability to form an alternative economic bloc at the global level. But along this path lay various challenges which have to be resolved through the development of its alternative institutions and the creation of the conditions for the formation of a monetary union and the international payment system in the future. These efforts can in turn have an impact on the decision-making process of the international system, and lead to the reformation of the financial institutions and the international monetary system.

Keywords