The Brics Countries In The International Financial System Reform And The Role Of Limit Analysis

In2001, Goldman Sachs economist Jim O’neil created a political and economic symbols-BRICs, which predicted the BRICs will have a prosperous future, but in the years that followed the BRICs has not formed a kind of cooperation mechanism, until the outbreak of the global financial crisis in2008. The financial crisis has been revealed many disadvantages of international financial system, and the emerging economies plays important role in coping with a financial crisis, some scholars then argue that it’s the time for BRICS to reshape international political economy. This paper is based on the background, the purpose is critical the viewpoint that the BRICS will reshape international political and economic situation, and provide policy choice analysis for China to use BRICS promote reform of the international financial system. This paper will be divided into five chapters, and every points as follows:The first chapter,foreword.This chapter is divided into two parts:expatiates the background and significance,and literature review.First of all, this paper expounds the rise of BRICS’process in order to understand the BRICS’prospects and China national police choice, so we have to explore these emerging powers. Secondly, the study about BRICS is at the beginning stage, so relevant academic monographs limited, but research papers as well as media reported more detailed data, and the relationship between the BRICS and the international financial system is lack of research, so this article studies is a try.The second chapter,the limit analysis of BRICS in the international financial system reform, this is also the key part in this paper. First of all,the theory foundation of BRICS participation in the international financial system reform, namely the internal cooperative game theory, and external follows the neoliberal institutionalism logic. Secondly, this paper expounds the international financial system Evolution course in order to highlight the existing international financial system malpractice for BRICS participate international financial system reform laying the history and reality basis. Thirdly, the international financial crisis results a national transfer power trend that which is from the western developed countries to BRICS,so the BRICS needs to use group hegemony thoughts to participate in the international financial system reform. Finally, analysis the limitation of BRICS in the international financial system reform and this divide into three aspects:one is promoting the international monetary system and breaking the diversity of dollar hegemony in the international monetary system reform; Second, promoting the reform of the proportion of the share of the vote reform and adjustment, the Special Drawing Rights reform in the international financial institutions; Three, the BRICS has to follow the existing financial regulatory rules in the international financial regulatory system reform.But the BRICS participation in the international financial system reform plays the role of supplement and correction, but not to reshape international political economy.The third chapter,the BRICS’cooperation path in the international financial system reform. The chapters reveals that the BRICS plays the supplement and correction role in the international financial system needs to take three cooperation paths:first of all, the BRICS form the stable cooperation mechanism through the summit mechanism and the G20mechanism; Second, the BRICS through all sorts of summit of the international financial system reform to express the consistent position and the state parties express the approval of the group; Finally, the BRICS strengthen their own identity by signing the cooperative frame agreement or holding the official or unofficial meetings.The forth chapter,the restriction factors of BRICS’cooperation in the international financial system reform, this paper expounds all sorts of factors with inside and outside will restrict cooperation.From the internal restriction factor analysis, there are four factors:the defect of the BRICS, the geopolitical differences among the China,Russia and India is difficult to eliminate, lack of common in the social system, the five countries have the unequal power; From the external factors analysis,the dollar hegemony in short time is difficult to change, the retaining control of the international financial institutions in the hands of a developed country, the BRICS’cooperation will be the influence by other economies.The fifth chapter,the China’s policy choice.This part presents China’s interest demand and Chinese policy choice. China’s participation in the international financial system reform is to promote the interest appeals RMB internationalization and maintain the stability of the international financial market, but always faces of western developed countries questioned. So China’s policy choice is in three aspects: one is to make full use of BRICS for self-interest; The other is to promote RMB internationalization; Three is to change the international financial system inertia, and impact the western developed countries as the leading international financial system pattern, but does not change the situation.The conclusion of this paper is due to the internal and external many factors,the BRICS will play added fixed effect in the international financial system reform,but not to reshape international political economy. China’s policy choice is to make full use of BRICS platform, promote the reform of the international financial system, and seek for its own benefits and to create the conditions of China’s peaceful development.