• Martin Hartmann Mauritsen
The creation of the New Development Bank is a result of the frustration that the BRICS nations feel with the existing international institutions in place. Considering their relative positions in geopolitics these days, having the largest economy and population in the world, their representation in the IMF and the World Bank is laughable. The outdated institutions do not recognize their status accordingly and this is manifested in the (lack of) influence that they can exert in a global governance capacity.

Establishing their own institution provides them with the power to exert their influence on global affairs. Geopolitical implications of this include shift in power relations, reduction in US and western global economic dominance, and reforms in policies pertaining to global governance. This paper explores all the aspects and considers how it will affect the current global economic order.

While it is always speculative to try and predict the future, theoretical works of previous global economic orders, particularly the Bretton Woods system, may give some indication to how the current global economic order will react to the introduction of the New Development Bank.

The paper concludes that the New Development Bank will have significant implications on the global economy, however due to the relative newness of the institution, these geopolitical implications may take some time before they manifest themselves.
SpecialisationLatin American Studies
LanguageEnglish
Publication date29 May 2015
Number of pages49
ID: 213200177