Since their establishment in 1944, the International Monetary Fund (IMF) and the World Bank have formed the backbone of international financing. For approximately 70 years, the system worked well to ensure stability in the global marketplace. However, the rapid growth of the BRIC economies revealed fundamental problems in the regulatory matrix of the IMF and the World Bank. The beginning of the Great Recession of 2009 only served to hasten this split between developed-world institutions, which, due to economic slowdown, budgetary restrictions, and currency valuation issues, have been forced to scale back international funding and shore up some of the more troubled developed economies (such as the economies of Southern Europe), and the developing world. In order to deal with a perceived neglect of emerging and developing countries by the IMF, the BRIC nations- Brazil, Russia, India, and China – have taken the step of establishing a development bank to better meet the needs of emerging market economies.
At the 2013 BRIC summit held in March, in Durban, South Africa, the five nations, South Africa was added to the big four, the BRICS Development Bank was established. As the first formal institution of the coalition, the Development Bank will fund infrastructure and technology projects throughout the developing world while helping the BRICS economies to co-operate with other emerging markets. The move is certainly noteworthy, as it effectively calls into question the current regulatory authority of the IMF. In a sense, the founding of the BRICS Development Bank even establishes an alternative global finance center meant to revamp the face of transnational financing.
Considering the enormous economic power behind it, it can certainly be expected that the Development Bank is here to stay. After all, BRICS nations alone account for 43% of the world’s population and possess a combined foreign currency reserve of $4.4 trillion. With an average annual economic growth rate of 4% in 2012, the five economies outperformed the economic establishment (the G7 nations posted an average annual growth of only 0.7%) by a longshot. As the data shows, trade with and among these 5 nations has been significantly increasing over the last decade and is expected to do so in the foreseeable future. For business and government authorities these developments might signal a lasting shift in the financial balance of power that might cause further changes in the way global trade and finances are regulated and conducted among nations. Consequently, international corporations and governments alike should strive to adapt to these new realities quickly and proactively.
They must pay special attention to the specific areas that “grease the wheels of commerce” in the new markets and the languages spoken there. This means, first and foremost, to select an experienced language service provider that can provide quality translation, interpretation, and localization services for Portuguese, Russian, Hindi, Mandarin, and the other eleven official languages spoken in BRIC nations to ensure that your company has a strong foundation in what is surely going to be the new center of world commerce.
If you are looking for quality financial translations in the areas of banking or investor relations EVS Translations is your ideal partner for international success and provide you with professional financial translation services of the highest quality.
