BRICs’ Philosophies for Development Financing and their Implications for LICs
IMF Working Papers, March 1, 2012
Source details
- Canonical URL
- BRICs’ Philosophies for Development Financing and their Implications for LICs
Other formats
Bibliographic details
- Authors: Yongzheng Yang, Nkunde Mwase
- Published: March 1, 2012
- Series: IMF Working Papers
Key findings
- Flows of development financing from the BRICs (Brazil, Russia, India, and China) to low income countries (LICs) have surged in recent years.
- Unlike aid from traditional donors, BRICs (excluding Russia) view their financing as primarily based on the principles of South-South cooperation.
- BRIC financing emphasizes mutual benefits without attachment of policy conditionality.
- The paper provides an overview of the philosophies and modalities of BRIC financing and examines their implications for LIC economies and future LIC-BRIC engagement.
Modalities and philosophies of BRIC financing
- Emphasis on South-South cooperation as the guiding principle for financing.
- Financing oriented toward mutual benefits between BRICs and recipient LICs.
- Limited use of traditional donor-style policy conditionality by BRICs (except Russia).
Implications for LIC economies
- Increased availability of development financing from BRICs due to surged flows.
- Potential changes in the balance between traditional donor aid and BRIC financing modalities for LICs.
- Need for LICs to consider the terms, modalities, and longer-term implications of BRIC-provided financing, given the emphasis on mutual benefit and limited policy conditionality.
Areas for future LIC–BRIC engagement (as examined by the paper)
- Overview of how BRIC financing modalities could affect LIC development strategies.
- Examination of implications for debt sustainability, public investment, and infrastructure financing in LICs.
- Consideration of institutional and policy implications for LIC governments engaging with BRIC partners.
Scope, subjects, and keywords
- Subject: Debt relief, Debt sustainability, Development assistance, Expenditure, External debt, Foreign aid, Infrastructure, National accounts, Poverty, Poverty reduction, Public investment and public-private partnerships (PPP)
- Keywords: Africa, Aid, Brazil, BRIC, BRIC assistance, BRIC engagement, BRIC export credits, BRIC financing, Bric financing of infrastructure, BRIC firm, BRICs, China, Debt, Debt sustainability, Development assistance, financing, financing flow, firm, Infrastructure, Institutions, LIC government, LICs, Poverty reduction, Public investment and public-private partnerships (PPP), Russia, SSA LICs, WP
Publication metadata (from the content)
- By Yongzheng Yang, Nkunde Mwase
- March 1, 2012
- Working Paper No. 2012/074
- Pages: 25
- Issue: 074
- ISBN: 9781475502268
- ISSN: 1018-5941
Yongzheng Yang, and Nkunde Mwase. "BRICs’ Philosophies for Development Financing and their Implications for LICs", IMF Working Papers 2012, 074 (2012), accessed 9/16/2026