The Global Economic Governance (GEG) Africa programme is a policy research and stakeholder engagement programme to strengthen the influence of pro-poor African coalitions at global economic governance fora.

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The Global Economic Governance (GEG) Africa programme engages with key stakeholders, to ensure that African views are included in our research and that our findings are widely disseminated and discussed. Our events include scoping workshops with African policy makers, business representatives and multilateral institutions, study groups to consult on policy recommendations and positions and representation, and media activities around GEG fora such as BRICS and G20 summits.

Wednesday, 08 April 2015 14:56

The BRICS Contingent Reserve Arrangement and its Position in the Emerging Global Financial Architecture

Written by  Nicolette Cattaneo, Mayamiko Biziwick and David Fryer

SAIIA Policy Insights No 10, March 2015

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Published by SAIIA's Economic Diplomacy Programme

In its present shape and size the BRICS Contingent Reserve Arrangement (CRA) should be regarded as symbolic and exploratory rather than as a substantive challenger to the International Monetary Fund (IMF). However, the momentum of the BRICS process and the experience of the similar Association of Southeast Asian Nations plus Three (ASEAN+3) process suggest that the CRA has the potential to develop in two directions. Firstly, it should aim to become an adequate safety net and provide high-quality macroeconomic monitoring, and hence ensure participating countries’ independence from the IMF. Secondly, it should aim to draw in other emerging economies. However, the CRA in itself does not represent a significant break from prevailing orthodoxy. Its limited scope may condemn it to playing a bit part in the global financial system.

Authors: Nicolette Cattaneo, Mayamiko Biziwick and David Fryer

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