Now let's see what happens next in Rio this week. As the Inquirer relates, ..., conveniently scheduled at the end of the World Cup, leaders of the BRICS countries (Brazil, Russia, India, China and South Africa) meet in Brazil for a meeting that presents them with a truly historic opportunity.
While in Brazil, the BRICS countries hope to establish a new development bank and reserve currency pool arrangement.
Now the BRICS countries are taking matters into their own hands. Their governments have been diligently putting together two new institutions that hold great promise: a new development bank and a new reserve pooling arrangement.
The development bank would provide financing to the BRICS and other emerging market and developing countries for infrastructure, industrialization and productive development.
The reserve pool would allow the BRICS and other countries to draw on pooled reserves in the event of balance-of-payments crises or threats to their currencies.
When these institutions are launched in Rio this week, the BRICS countries could and should forge a “Rio Consensus”—provided they do not make the same mistakes of other, mostly Western-inspired “models” in the past. The key is to make it a model for global economic governance in the 21st century.