Emerging Powers and Change in the Global Financial Order

Emerging economies have become a major force in the world economy. This article examines the role of Brazil, Russia, India and China (BRIC) in global finance and compares their potential to challenge the parameters of international financial and monetary relations. Instead of focusing on changes inside the existing system of multilateral governance, our analysis stresses the need to consider a broader set of channels to develop and exert financial power. Our comparative assessment of BRIC economies' increasing autonomy, their strategic intentions, financial system capacity and the behavior of subnational 'power brokers' in global financial markets serves as a starting point to advance the debate over ongoing structural changes in the global financial order. We show how increasing autonomy and financial power have already led emerging markets to develop alternatives for crisis financing and development assistance. The prospects for deeper cooperation among BRIC economies however remain gloomy, as the already very diverse preferences with regard to global financial structures can be expected to further