BRICS & SCO 2.0
- By Xu Qinduo
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E-mail CRI, July 14, 2015
The SCO is taking on a new mission, too, to act as a platform to align the Chinese initiative of Silk Road Economic Belt, which focuses on infrastructure connectedness from China to Europe, and Russia-led Eurasian Economic Union, which has a goal of building a single economic market.
For that purpose, the SCO is to establish a new Development Bank, a vision promoted by China for years and finally to come into being. The bank is to finance investment projects in SCO member countries.
Equally important in Ufa was the meeting of leaders from BRICS countries – China, Russia, India, Brazil and South Africa. The largest emerging economies set in motion the BRICS New Development Bank and agreed on a foreign currency reserve fund.
The Bank will work as an institution to issue loans to support investment and trade, common priorities for these developing countries.
The currency pool of 100 billion US dollars will provide a safety net in time of financial crisis, as seen in Greece, to stabilize the capital markets of member economies.
The BRICS account for more than 20% of the global economy and 40% of its population. The New Development Bank and the currency pool will not only spur economic expansion of these countries, but also contribute to the stability of world's financial markets.
The SCO and BRICS group the world's most dynamic economies as well as countries of energy and natural resources. Now that necessary mechanisms are in place, what they need to do is to fully utilize the potential to maintain a continuous and stable economic growth in the coming decades.
Looking into future, there're a lot to expect: the SCO will grow stronger and carries more weight on the two wheels of security and economic growth; a well-connected Eurasia with roads, railways and pipelines will create prosperity along the renewed Silk Road; and BRICS may even open for new members.
If the past few decades have seen the world's economic growth shifting to the east and the developing world, then we can say that direction is becoming even firmer with the SCO and BRICS.
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