The “BASIC” block of countries, including China, India, Brazil and South-Africa, representing a group of emerging economies have become a strong geopolitical force in global governance. This “political power shift” became apparent during the Copenhagen Climate Conference and has been observed as well in the vote reform within the Bretton Woods Institutions, such as the World Bank and the IMF1. While the US and Europe continue to have a strong and powerful voice within the International Finance Institutions (IFIs) and UN bodies, the BASIC countries are increasingly using their political and economic clout and influence, especially through informal alliances around UNFCCC negotiations, Major Economies Forum (MEF) and shaping of Green Climate Fund.
The world is entering a new period in global politics, where restructuring of global institutions and redesigning of political processes are taking place to incorporate the interests of emerging economies. Even the World Bank has to navigate through this new emerging dynamic, especially on issues like energy strategy, environmental and social safeguards, etc. Continue reading