The article reviews cooperation between the BRICS countries (Brazil, Russia, India, China and South Africa) and their collective efforts to promote reform of international financial institutions, shape global financial regulation and improve financial cooperation. The authors focus on the BRICS–G20 engagement for global economic governance reform. To assess the progress so far, the study employs original quantitative data on the BRICS and G20 commitments and compliance, and qualitative analysis of the BRICS and G20 discourse and the transformation of the international economic architecture. The results suggest that, contrary to the common perception of the BRICS as a challenger of the traditional western-dominated international monetary and financial system, it acts in a cooperative manner, seeking to make the international financial architecture and global regulation more representative and responsive to emerging markets and developing economies needs, and strengthen the stability and resilience of international and domestic financial markets.

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In this article, the author focuses on the recently-established New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB). It identifies two factors which have created the demand for this new model of multilateral development banks (MDBs), namely, a lack of infrastructure financing and the aspirations of developing countries for a greater role in the global financial system. The author also compares the NDB and AIIB in terms of membership, management structure, distribution of capital and votes, and options for attracting capital in financial markets. Based on this comparison, he forecasts the banks' credit portfolios' growth until 2025. The author concludes that both institutions should accumulate and use the best practices of existing MDBs, improve their image to attract investors, and actively engage in sharing expertise and co-financing projects with development institutions as well as commercial banks. By doing so, the volume of their operations could reach $40 billion per year in 10 years, which is close to the volume of infrastructure financing provided by major traditional banks, and could contribute substantially to addressing the financing needs of developing countries.

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