BRICS IMF, no go zones

Before long, BRICS International Monetary Fund (IMF) would be a reality. How it would be called and where the HQ would be located are matters to be settled, in the forthcoming BRICS summit in Kazan, Russia in October 2024 where sowing the seeds for the proposed new monetary institution would be under way. One thing is certain there would be several no go zones:

Learning from the criticism levelled at the present USA dominated IMF, the proposed BRICS IMF need to avoid the following in order to lessen geoeconomics risks & vulnerabilities and enhance the geoeconomics potency of beneficiary nations.

1. Imposing austerity measures as a prior condition for granting IMF support scheme is the first no go zone

2. Reducing essential subsidies in relation to staple food, fertilizer and other farm inputs by the borrowing countries would never be entertained

3. Tax hikes for the current taxpayers would not be emphasised. However widening the potential tax payer net would be encouraged

4. Curtailing public expenditure for essential sectors would be no go whereas wasteful expenditure are to be axed in Toto

5. Privatization of state owned enterprises (SOE) as a blanket measure would not be imposed. Nevertheless, where such privatization is to accrue benefits in terms of efficiency & productivity then it would be selectively Okayed

6. The concept of structural reform/adjustment would be mandated only in cases such measures would help the prospective borrower countries

7. Whatever recommendations that are proposed by the BRICS IMF to beneficiary nations should be vetted so as not to get these countries mired into economic stagnation

8. Fundamental approach would be to target inequality within the economic sectors such that those who are in the bottom line in the pecking order have reasonable income to support their basic needs

9. No force or arms twisting would be resorted to by the BRICS IMF management team in making recommendations on the economic policy within the national boundary and outside the world of geoeconomics.

Once this type of support and/or funding is undertaken the globe as a whole and the beneficiary as a unit would have every chance to play fair and compete in a level playing field.

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist