Importance Contemporary international financial institutions, like the International Monetary Fund, the World Bank, the Asian Development Bank, etc., do not have substantially effective mechanisms to support the global financial stability. Therefore, there is a need for alternative approaches to organization and functioning of the international system of currency and finance (the international financial architecture). At present, such approaches are being developed at the level of multilateral dialogue of the BRICS countries. Objectives The objective of the work is to develop proposals helping formulate alternative approaches of the BRICS countries to reforming the contemporary international financial architecture. Methods Using a comparative analysis of activities performed by international financial institutions, I have developed alternative approaches to optimizing the structure, portfolio of credit instruments, disclosure and transparency of financial information of the BRICS Development Bank. Results I have specified the substance of the financial minilateralism category, demonstrated its unique features as an alternative approach to reforming the international financial architecture. The approach requires a step-by-step accumulation of quantitative differences in the contemporary international system of currency and finance that eventually will lead to the emergence of a qualitatively new reality, namely, the new international financial architecture. Conclusions and Relevance I conclude that the BRICS countries should strengthen their cooperation in the financial sphere on the basis of minilateral financial institutions, such as the BRICS Development Bank. This will allow them to create their own niche in the international capital markets aimed at meeting the demand of other emerging countries for credit resources, and to build the basis for increased use of national currencies of BRICS countries in their mutual cross-border operations.
Keywords: international financial architecture, BRICS Development Bank, alternative approaches, financing, developing countries, financial minilateralism
References:
Avdokushin E.F., Kovalenko V.N. Perspektivy internatsionalizatsii kitaiskogo yuanya: mozhet li yuan' stat' mirovoi valyutoi? [Prospects for internationalization of the Chinese yuan: will the yuan be able to become a world currency?]. Voprosy novoi ekonomy= Issues of New Economics, 2012, no. 2, pp. 43–49.
Andreev V.P. Internatsionalizatsiya yuanya: promezhutochnye itogi i perspektivy [The yuan’s internationalization: interim results and prospects]. Den’gi i kredit = Money and Credit, 2011, no. 5, pp. 37–42.
Andreev V.P. Internatsionalizatsiya yuanya: novye vozmozhnosti [The yuan’s internationalization: new opportunities]. Den’gi i kredit = Money and Credit, 2012, no. 5, pp. 69–73.
Anoshin V.N., Keshchyan V.G. Formirovanie effektivnogo investitsionno-finansovogo mekhanizma aktsionernogo obshchestva [Devising the effective investment and financial mechanism of a joint-stock company]. Ekonomika i predprinimatel'stvo = Economy and Entrepreneurship, 2014, no. 7, pp. 791–794.
Binder A.I. Nekotorye aktual'nye aspekty transformatsii yuanya v mirovuyu valyutu [Some urgent aspects of yuan’s transformation into a world currency]. Den’gi i kredit = Money and Credit, 2013, no. 11, pp. 59–62.
Borisov S.M. Rossiiskii rubl' v mezhdunarodnykh raschetakh: geografiya i statistika [Russian ruble in international settlements: geography and statistics]. Den’gi i kredit = Money and Credit, 2011, no. 12, pp. 15–23.
Vdovin A.N. Bankovskaya sistema KNR: klyuchevye problemy [The Banking system of the People's Republic of China: key problems]. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations, 2014, no. 9, pp. 75–83.
Golovnin M.Yu. Osnovnye napravleniya razvitiya mirovoi valyutnoi sistemy i denezhno-kreditnaya politika Rossii [Main areas of the world currency system development and the monetary policy of Russia]. Mezhdunarodnaya ekonomika = International Economy, 2011, no. 2, pp. 11–15.
Kotlyachkov O.V., Kotlyachkova N.V. Pokazateli i kriterii effektivnosti ispol'zovaniya sredstv, primenyaemye dlya audita effektivnosti [The indicators and criteria of efficient use of funds applied in performance audit]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2013, no. 2, pp. 47–57.
Potemkin A.I. Ob usilenii roli rossiiskogo rublya v mezhdunarodnykh raschetakh [On strengthening the role of the Russian ruble in international settlements]. Den’gi i kredit = Money and Credit, 2010, no. 8, pp. 3–10.
Struchkova E.S. Metodologicheskie resheniya upravleniya finansovymi resursami proizvodstvennykh protsessov na osnove ikh konsolidatsii i ratsionalizatsii [Methodological solutions for managing the financial resources of production processes on the basis of their consolidation and rationalization]. Nauchnoe obozrenie = Science Review, 2014, no. 8, pp. 688–693.
Suetin S.N., Kostenkova N.K. Problemy regulirovaniya kreditnykh otnoshenii i puti ikh resheniya [Problems of credit relations regulation and ways to solve them]. Nauka Udmurtii = Science of Udmurtia, 2009, no. 12, pp. 89–94.
Kim L.G., Shishkin M.I. Mekhanizmy povysheniya effektivnosti ipotechnogo kreditovaniya [Mechanisms of increasing the efficiency of mortgage lending]. Izhevsk, Nauchnaya kniga Publ., 2007, 248 p.
Basu K. Global Development Horizons. Capital for the Future: Savings and Investment in an Independent World. World Bank, Washington DC, 2013.
Brummer C. Minilateralism: How Trade Alliances, Soft Law and Financial Engineering are Redefining Economic Statecraft. Cambridge, Cambridge University Press, 2014.
Carrasco E.R., Carrington W.V., Lee H.J. Governance and Accountability: The Regional Development Banks. Boston University International Law Journal, 2009, no. 1, pp. 1–60.
Kuroda H. Infrastructure for a seamless Asia. Asian Development Bank, Asian Development Bank Institute, Manila, Tokyo, 2009, p. 10.
Mwase N., Yang Y. BRICs’ philosophies for development financing and their implications for LICs. IMF Working Paper, 2012, no. 12/74, pp. 13–17.
Naim M. Minilateralism: The Magic Number to Get Real International Action. Foreign Policy, 2009, no. 173, pp. 135–136.
Nelson J. The Private Sector and Aid Effectiveness: Toward New Models of Engagement. The Brookings Institution, Washington DC, 2010.
Stern N., Bhattacharya A., Romani M., Stiglitz J. A New World's New Development Bank. Project Syndicate, 2013.
Fortaleza Declaration of the BRICS. Available at: Link.
Garemo N. Infrastructure productivity: How to save $1 trillion a year. The McKinsey Global Institute, 2013. Available at: Link.
Soentoro T. ADB Accountability Mechanism: Handling the Symptoms but Not the Disease. NGO Forum on ADB. Manila, 2009. Available at: Link =4&id=134&b =1.
