The achievements of the recent Brics summit deserve another look.
Global investors should welcome the proposed $100bn Contingent Reserve Arrangement and the planned Development Bank backed last month by the leaders of Brazil, Russia, India, China and South Africa. The Brics shareholders have yet to work out the details of these institutions, but the political resolve is clearly in place.
Given the increasing frequency and magnitude of global financial crises since the collapse of the Bretton Woods system, the addition of another fund that major countries can rapidly mobilise in times of crisis is welcome. And a new development bank that promotes much-needed infrastructure investment is timely and can increase global aggregate supply. This is a positive development for global consumers and investors.