"OLD" VS. "NEW" INTERNATIONAL FINANCIAL INSTITUTIONS: COMPETITORS OR SUPPLEMENTARIES

Important source of liquidity, both in terms of crisis but also for program oriented financing, especially for developing countries, are international financial institutions. Although in decades after the Second World War, the International Monetary Fund - IMF (and the World Bank) has been the most important international financial institution, there is a range of other institutions, mostly multilateral development banks that also contribute to the national program financing. The financial stance of global economy is changing considering the fast growth of emerging markets, especially China and, consequently, BRICS countries. Thereafter, the strengthening role of developing countries initiated the founding of new supranational financial institutions, mostly in form of regional development banks. Considering their goals, organizational structure and programs, in line with the role of founding countries in global economy and international finance, the question is whether these "new" institutions challenge the existing financial order based on dollar dominance. In other words are they competitors or supplementaries. This paper puts attention to the role of New Development Bank (NDB) constituted in 2015 by BRICS countries, and comparison with International Monetary Fund, especially considering possibilities of financing through NDB's Contingent Reserve Agreement. It also contributes to the wide discussion on the relationship between "old" and "new" financial institution, on whether this is a beginning of a new world order with redefined role of brettonwoods institutions. The paper has several goals. Firstly, besides analyzing the financing possibilities of IMF, it focuses on the motivation for founding new international institutions, considering their role in development of member countries. Of course, these are not the only new international institutions, but the initiative of the observed countries caused a lot of attention in global finance. Second goal is to research the role of supranational institutions in wider perspective of both regional and global financial and economic context. Finally, paper explores future coexistence of "old" and "new" institutions, focusing on IMF and NDB relationship.