The BRICS’ New Development Bank and the EU’s options. College of Europe Policy Brief #7.16, April 2016

Ujvari, Balazs (2016) The BRICS’ New Development Bank and the EU’s options. College of Europe Policy Brief #7.16, April 2016. [Policy Paper]

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Abstract

Executive Summary > Global economic governance is currently undergoing a significant transformation led by China and its emerging economy partners. > China’s increased activism on the global stage rests on the reform of established organisations, the design of parallel institutions, the revitalisation of neglected frameworks and the creation of novel networks. > One example of the creation of a new institution concerns the New Development Bank, which is set to complement the World Bank’s efforts, but may also dilute the very standards in development finance that the EU has long championed. > After an initial focus of two years on Brazil, China, India, Russia and South Africa (BRICS), the Bank will co-opt new members. > After failing to show a united front vis-à-vis the Asian Infrastructure and Investment Bank (AIIB), EU member states should now seize the opportunity to respond strategically to a new global institution created by non-traditional powers.

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