An Overview of the New Emerging Balance of Forces- ‘the BRICS, G 20 and G 7’ Response to the Global Financial Crisis

Journal Title: Asian Economic and Financial Review - Year 2011, Vol 1, Issue 2

Abstract

The USA and the EU economies have just been through a severe recession marked byfinancial turmoil, large-scale destruction of wealth, and declines in industrialproduction and global trade. As the result of reduction in the demand of products in theglobal market, continued falling prices due to lack of demand of their products. TheUSA economy is not competitive now. The current international financial crisis was anexplosion that was the ultimate result of the accumulation of a number of unbalanced,inconsistent and unsustainable factors in the world economy. It is a reflection of thelimitations of the liberal capitalist development concept of Western countries. It alsoshows the dangers of blindly copying the Western development model. The BRICScountries (Brazil, Russia, India, China and South Africa) and the G 20 replacing the G-7 in the wake of the economic crisis, as the premier global forum to deal with thecrisis, reflected a relative decline in the power of the US and other advanced capitalistcountries. The BRICS can represent the interests of all the developing countries. TheBRICS countries are not only the emerging largest economies but its growing strongeconomic and political relationship with the African, Latin American and Asiancountries; it may change in the international economic order through using commoncurrency in trade, sharing their own science and technology to improve and transformin agriculture, energy, and industrial sectors, and establishing a new military block sothey can provide security from the imperialist aggression. Of course, China would beas backbone of the BRICS.

Authors and Affiliations

Akhilesh Chandra Prabhakar| Assistant Professor in International Economics, Debre Berhan University, Ethiopia. Email: [email protected]

Keywords

Related Articles

ACCOUNTABILITY AND THE EXPERIENCE OF THE 2007 GLOBAL FINANCIAL CRISIS

The ripples of the 2007 financial crisis are still felt in many economies. Taking advantage of hindsight, this paper examines the factors that facilitated the occurrence of the crisis and how the crisis was managed. It u...

AN INVESTIGATION INTO THE EFFICIENCY OF MONETARY AND FISCAL POLICIES IN IRAN CASE STUDY: THE 4th ECONOMIC DEVELOPMENT PLAN

This study investigates the efficiency of the quantitative targets of monetary and fiscal policies of Iranian 4th economic development plan using dynamic simulation approach. An open macro economy model was designed and...

SAUDI ARABIAN COMMERCIAL BANKS’ MARKET-RISK SENSITIVITY: A VIEW THROUGH ROLLING SUB- SAMPLES

Using data collected from the Saudi Arabian TadawulStock Exchange, this paper analyses 11 publically listed bank risk-return relationships during 2008-2011. The contribution of this paper provides a more refined techniq...

HOW NEWSPAPER-ARTICLE-EVENTS, OTHER STOCK MARKET INDICES, AND THE FOREIGN CURRENCY RATE AFFECT THE PHILIPPINE STOCK MARKET

Eugene Fama in his “Efficient Market Hypothesis” introduced the term newspaper-article-event. The aim of this paper is to find out if newspaper-article-events which are presented and discussed in newspaper articles and w...

IMPOSITION OF R&D SUBSIDY IN A PRODUCT DIFFERENTIATED DUOPOLISTIC INDUSTRY

This study analyzes an imposition of government R&D investment subsidy in the standard model of vertical product differentiation with two products in a duopolistic competition. We show that the imposition of distinct sub...

Download PDF file
  • EP ID EP1716
  • DOI -
  • Views 625
  • Downloads 77

How To Cite

Akhilesh Chandra Prabhakar (2011). An Overview of the New Emerging Balance of Forces- ‘the BRICS, G 20 and G 7’ Response to the Global Financial Crisis. Asian Economic and Financial Review, 1(2), 67-82. https://europub.co.uk/articles/-A-1716