Globalization has tied national states into interdependent system. One of the major goal of establishing the unified global space was to empower less developed countries and create more opportunities for new markets and wealth, inspiring the economic growth and social prospects. International development institutions were dedicated to harmonize interactions between diverse actors and to establish common mandatory regimes,
incentivizing developing countries to be relevant. As the global order has been transformed by new regional powers, existing international institutional architecture is not adequately facing the challenges posed by the current status of the global economy, and hence could be supplemented by new regional financial mechanisms. The article provides an overview of recent initiatives, launched by BRICS countries: Asian Infrastructure Investment Bank, New Development Bank, and Silk Road Foundation, focusing on factors beyond their founding; agenda and first projects; challenges, faced by these institutions. New Development Bank,
AIIB, as well as China’s One Belt One Road program, have different targets and roles on regional integration, that allows for differentiation of responsibilities and to provide omnichannel support for development projects. It is argued, that new institutions have the potential to achieve several positive and complementary aims: provide additional financial
support for infrastructure projects; leverage the savings
of emerging economies for the
purposes of development; serve as a forum for incorporating emerging economies into the multilateral global system. Also, it is argued, based on comparative analysis, that new BRICS initiatives are complementary to existing international institutions and organizations rather than competitive to them. Given a massive need for greater volumes of development finance
(The World Bank estimates an infrastructure deficit of at least $1 trillion in these regions), particularly for basic infrastructure, new development institutions could help to fill infrastructure gaps and provide new prospects for developing countries.