BRICS IMF, goodies galore

The current International Monetary Fund (IMF) is presumed to walks into sun set as BRICS contemplate formation of their own IMF. As a geoeconomics feat, this would bring a lot of positive benefits to the member countries. Furthermore, the New BRICS IMF would have goodies galore for the benefit of global south. Read on:

There are number of positive features envisaged in the new monetary institution, in contrast with the USA led present IMF. Here is a list I have compiled with a cautionary note, it is not exhaustive:

1. Public–private partnership is the chief thrust. Gone are the days of states owning every enterprise under the sun? At the same time allowing private sector to be the lead engine for economic growth has inherent threats in terms of social cohesion, creating two groups: haves and have-nots.

2. Controlling inflation is to be carried out with an appropriate mesh of money supply and demand growth domestically. By this way assisted countries must seek a balance between economic growth and an ideal level of inflationary pressure.

3. Organizational behaviour of the BRICS IMF is fashioned in the concept of ‘give and take’ attitude. Members of the UMF would be termed as partners and not as lender and borrower dichotomy that created a Chinese wall between and amongst the countries.

4. Social transformation is the driving force behind the new IMF to be woven around all its activities concerning domestic economy within the shores of a beneficiary country as the receiver and selected partner countries who are earmarked to assist the country in question as the givers

5. A repertoire of grants, loans and investments is to be made in consultation with the receiver and giver where each genre would be calibrated. For example, in case of loaning interest would be fixed just few basic points above the market rate and would incorporate moratorium over interest where needed and suggested re-scheduling program where the beneficiary is unable to cope up with scheduled repayment.

6. Special emphasis is to be placed on poverty alleviation, health, education and other welfare related items knitted into the broader mission of social and economic progress moving congenitally.

7. Advice regarding fiscal and monetary issues for the beneficiary nation would be made available from the IMF head-office free of charge.

8. More than anything else member countries as  a whole participate together  in making the BRICS IMF as an geoeconomics power house where the benefits fritter into every partner be he is  receiver or giver.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist