1/2016 East vs. West: Battle for Reforming the World Economy

Authors: Igor Prokofiev, Vyacheslav Kholodkov, Nikolay Troshin
Publishing house: ………………………………. RISS
Pages: ……………………………………….. 32


Despite the fast growth of the developing economies’ share in the world GDP, they are still estranged from global economic governance processes. Domination of Western countries in international financial organizations and all segments of the global financial market, including the forex market, provides the West with the opportunity to maintain unequal exchange in economic relations with developing nations. Vices of the global financial architecture built by the West for their own benefit gave birth to acute global crises of the new type. In this situation developing economies started to struggle for protection of their rights which, following the BRICS group creation, became meaningful, systematic and global. Supported by developing countries, the BRICS group is striving for the rearrangement of the whole global economic architecture including the international trade, foreign exchange and financial relations, foreign investments, control over sources of raw materials, regional markets, and high technologies.