Asia eyes key stake in new global financial system- Global Markets-Markets-The Economic Times
As Europe and the United States clash over their leadership role in framing a new international financial architecture at the November 15 meeting in Washington, Asians feel they have much of a stake in the stability of the global system as the industrialized countries, the experts said.
“The big question is how you can restructure the international economic regime in a way that makes countries such as India and China feel that they not only have a stake but also have real influence,” said Eswar Prasad, former head of the China division at the International Monetary Fund.
No clash … more like fighting over spoils …
In the last 10 years, the Euro has managed to make a niche for itself – and make space for itself. With the dollar under pressure, now the Euro wants to twist the knife into the dollar side. The Euro-zone knows that the G-5 (Russia, China, India, Brazil, South Africa) are not prepared with an alternate plan.
Without such ‘special’ mechanisms, the Euro and dollar zones have to compete, without significant weight advantage on their side. The institutional mechanisms in the G-5 have large gaps – and the Euro Bloc knows that. Hence, the Euro Bloc is trying to gain advantage over the dollar – and they can succeed only if China and Russia ‘co-operate’ with the Euro zone.
The 2ndlook model for a Third currency Bloc is ready. Join in to review, participate, critique and develop the First Cut. While the need for a new global reserve currency has been evident, there is very little in the public sphere. The speed of events has clearly caught the BRICS and Third World napping – and unprepared. But, not 2ndlook – who, from the very beginning, proposed that the world should stop clinging to the Dollar-Euro skirts.