Steadfastly, the BRICS Pact is leading the world in economic and political reform towards building the quality of our lives from wealthier, healthier and cleaner ambitions for our planet. Fittingly, the BRICS Pact is an economic bloc established between Brazil, Russia, India, China and South Africa. Presently, BRICS nations embody over 3 billion people, or nearly 42% of the world population as four out of the five states are among the top 10 in world population. Similiarly, BRICS nations have a combined nominal GDP of $16.039 trillion (USD) which is comparable to nearly 20% of the gross world product.
Swiftly, the BRICS Pact is taken the world lead on natural environmental planning with rapid development in military research and agricultural growth from rural development. Openly, since the 2007 Great Recession military research has engulfed both local and national government officials with urban issues such as global warming, improved infrustructure and disease control. Accordingly, the BRICS Pact has established the New Development Bank (NBD) to fortify modern day natural environmental planning. Prudently, natural environmental planning includes orderly and proper future development which diminish the risk of a dismal economic recession. Meanwhile, failure to maintain a unipolar model of international governance since the end of the Cold War has a devastating impact on international trade. Importantly, natural environment planning integrates land-use planning, environmental planning, and infrastructure planning to improve the environment for future growth in international trade.
Politically, the BRICS Pact has resolved to outpace the Western states of Europe and North America with various approaches to global issues which impact natural environmental planning. Strategically, the BRICS Pact is devoted to achieving a polycentric world order while ensuring economic, social and political reform towards expanding regional and global military ties. Furthermore, the New Development Bank has established the Environmental and Social Framework which guides the bank with achieving global growth and economic prosperity.
Instinctively, in 2014 leaders of the BRICS Pact signed the Fortaleza Declaration to establish the New Development Bank. Specifically, the Fortaleza Declaration states, "The Bank (NDB) shall have an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be US$ 50 billion, equally shared among founding members. The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters.”
Triumphantly, the NDB has established partnerships with major financial institutions such as: AIIB, EBRD, IIB and ADB among others. Judiciously, a Project Preparation Fund has been established with the NDB between Russia, India and China which embodies the framework for a new international payment system. Aggressively, the NDB has formed its mission to support natural environmental planning for the BRICS Pact among other emerging economies alike. Innovatively, the NDB has initiated faster development through state-of-the-art technology which impacts our quality of life.
Momentously, the NDB is poised to assist with economic relief efforts in war torn parts of the Middle East. Moreover, rising economic stagnation from US military threats around the world has ignited the demand for a new international payment system. Additionally, the demand for high-speed railroads, nuclear power and water treatment systems has increased the volume of international trade in the face of persistant US military hostility. Hence, Russia's Central Bank has initiated the Faster Payments System (FPS) to facilitate e-commerce and international trade while increasing its share in the NDB. Uniquely, the FPS propels foreign investors and entreprenuers beyond the gridlock of economic sanctions, trade embargoes and political red tape. Likewise, China has initiated a payment system called CIPS which replaces the obsolete SWIFT system. Globally, the Cross-Border Inter-Bank Payments System (CIPS) is an international payment system which provides a network for the NDB to exchange information and financial transactions in a secure, standardized and reliable environment. Prudently, Central Banks of every nation must illustrate a reliable interbank payment system which addresses the unknown as the COVID-19 pandemic injects uncertainty into international trade. Appropriately, the gold standard is the primary tool for balancing international trade on all economic fronts.
The Gold Standard
Slowly, economic regression has reached a climax among the G-7 nations over failure to deliver appropriate reform to alleviate poverty, organized crime and malnutrition in youth. Visciously, the G-7 remains isolated with de-dollarization among members of OPEC which adds major pressure on the IMF's oversold special drawing rights (SDR) program. Reluctantly, the IMF has ushered the following currencies as its financial anchor: US dollar, euro, renminbi, yen, and sterling. Successfully, the gold standard (as an economic tool) is beginning to balance the currency market with the gold-backed ruble and yuan. Effectively, the ruble and yuan have displayed resilience over trade embargoes by the G-7. Increasingly, the US trade war with China and sanctions against Russia fuel the impact of the new international payment systems used as alternatives for the IMF's basket of currencies which have trade restrictions.
Traditionally, the gold standard adds protection against spriraling government debt which induce hyperinflation in many scenarios. Flexibly, the gold standard stabilizes exchange rates between currencies of different nations while the ruble begins to leap ahead of the slowdown left behind from the COVID-19 pandemic. Readily, Russia's Ministry of Finance and Central Bank have maintained its mandatory budget rule which relaxes monetary supply sentiment over the volatility of oil.
Assertively, the Bank of China has moved forward with auctioning gold which empowers it to set gold prices on the futures market. Observably, Asia's bond market which is led by China, Japan and Korea is subjected to the economic rift of de-dollarization. Similiarly, bond holders world-wide will undergo financial restructuring from the establishment of new international payment systems. Momentously, on 24 March 2009, Zhou Xiaochuan, President of the People's Bank of China, demanded for "creative reform of the existing international monetary system towards an international reserve currency." He stated it would "significantly reduce the risks of a future crisis and enhance crisis management capability." Chiefly, the yuan is poised to stabilize the currency market while being an international reserve currency with the ruble.
Candidly, Fang Xinghai, a vice-chairman at the China Securities Regulatory Commission iterated, “Yuan internationalisation is a must to offset external financial pressure. If our overseas assets were held in yuan, there won’t be such worries [over US dollar devaluation].” Transparently, Russia, China and Kazakhstan agreed to initiate the Western Europe-Western China International Transit Corridor which spans over 8,000 km through China to Russia which illustrates the rising demand for the yuan and ruble. Moreover, the BRICS Business Council has agreed to integrate economic development from the private sector including the following fields in: Agribusiness, Digital Economy, Skills Development, Infrastructure, Manufacturing, Aviation and Financial Services into the BRICS Pact. Currently, the BRICS Business Council has given the role of rotation chairmanship to Russia.
Profoundly, the BRICS Business Council has triggered economic development between business and government leaders through stronger investment ties. Fervently, China and Russia demonstrates economic progression with ongoing development of high-speed railroads which intertwine on the Eurasian continent. Therefore, the New Development Bank among other major regional financial institutions around the world seek to reap the benefits of new international payment systems with gold-backed currencies. Instinctively, the vacuum for a global reserve currency system diminishes at the regional institutional banking and finance level. Efficiently, the BRICS Business Council injects solutions for a new international payment system which includes a reserve currency system that is distinguished from the European World Order.
Globally, the COVID-19 pandemic has wrecked economic havoc in many parts of the world. Socially, Central America is at odds from the economic slowdown as Eastern Europe remains engulfed with permanently-based US troops. Assertively, the BRICS Business Council furnishes a host of economic stimulus packages for the New Silk Road Economic Belt which fuels the political shift towards global recovery. Whereas, stagnation over US trade embargoes is alleviated with new international payment systems. Finally, Fang Xinghai of the China's Securities Regulatory Commission mentioned, "We have to make preparations early – real preparations, not just psychological preparations."