Challenges for BRICS International finance and Technology transfers Dr., Prof. Yarygina I.Z. Financial University under the Government of the Russian Federation MGIMO (U), Ministry for foreign affairs of the Russian Federation

Trends of international financial relations Globalization - main trend of International Finance Debt management Reengineering of the international cooperation New challenges and instruments Geo - economic background

Easer debt management within Development of international financial relations Direct/indirect financing Mutual rules on financial instruments and services International Banking Mergers of institutions Public Private Partnership

Factors of Financial Globalization Development of the international finance Direct financing Financial innovations & technologies Harmonization within international partnership of financial instruments and services International Banking on mutual principles Mergers and Acquisitions

Speed of financial globalization depends on: 1 Local macroeconomic factors 2 Participation in the global market activity 3 Supply of the products for the international market 4 Consolidation of the economic capital 5 Correlation of the internal and external economic background 6 Political support

Key vehicles for cooperation Democratic approach to restructuring Intergovernmental administration and legal support Public Private Partnership

Innovations/Technology transfers Machinery and equipment Banking support Innovations/Technology transfers Energy production and supply Communication Machinery and equipment Infrastructure development Water supply Healthcare Education

Harmonization of regulations as the main challenge for BRICS market developments Modernization of banking institutions Safety of banking Safe and sound services for clients

BRICS strategic partnership Easier penetration to financial systems and markets Shorter periods for strategic developments Administration reserves & Technology transfers Professional challenges

Portfolio investments Greenfield investments Ways of cooperation Direct investments Portfolio investments Greenfield investments M&A Asset penetration JV Affiliate Branch

Extension of BRICS national currencies as an essential challenge

What is required for the BRICS national currencies expansion Economic developments of the country – issuer of the currency Request of the currencies in the global market within contracts, payments, clearing system, etc. Mutual risks management Functions of the currencies abroad as means of payment, reserves, accumulation of funds, etc. Harmonized juridical background

International cooperation, backed by national currencies on the basis of Intergovernmental support of financing Export financing Guarantees issuance International Project - financing Public Private Partnership Syndicated loans Factoring Leasing Settlements, etc.

New Challenges for the Economic and Political intermediation within Banking Stock markets Clearing Risk management Corporate - finance Tax and Insurance regulation Project finance, etc.

Need of Improvements Market structure & environment Technologies Operation procedures Financial reporting Financial monitoring Exchange of information

Harmonization of the juridical background within Banking Stock markets Clearing procedures Financial instruments Anti – corruption measures Corporate – finance Tax & Insurance regulation

BRICS & the Eurasian economic Union: 42% of the global population 26% of the land area 20% of the Global GDP Country Area, mil. km.² (global place) Population/mil. people (global place, 2014) Brazil 8,5 (5) 203 (5) Russia 17,1 (1) 146,2 (9) India 3,3 (7) 1220 (2) China 9,6 (3) 1370 (1) South Africa 1,2 (24) 48,6 (26) Country Area, mil. km.² (global place) Population/mil. people (global place, 2014) Russia 17,1 (1) 146,2 (9) Kazakhstan 2,724 (9) 17,498 (63) Belarus 0,207 (84) 9,485 (93) Armenia 0,03 (138) 3,017 (135) Kyrgyzstan 0,198 (86) 5,919 (110) *ППС - паритет покупательной способности **ИЧР – индекс человеческого развития - интегральный показатель, рассчитываемый ежегодно для межстранового сравнения и измерения уровня жизни, грамотности, образованности идолголетия как основных характеристик человеческого потенциала исследуемой территории. Он является стандартным инструментом при общем сравнении уровня жизни различных стран и регионов. 17

Mutual aims Economic growth, sustainable production output, etc, on the basis of relevant banking activity Financial stability and Social responsibility of public and private entities

BRICS - Eurasian economic Union Payment system ELO (br) НСПК (ru) RuPay (in) CUP (cn) ЮАР Белоруссия Казахстан Армения Киргизия

Silk road

The Northern sea route

Public Private Partnership as a challenge No assets transfer Separation of responsibilities Mutual interests within projects and funds management Transparency is the main principle of international cooperation

PPP PHASES Auto - sourcing (OPERATIONAL RELATIONSHIP) State refers to a privately owned institutions to find a solution to the problem for the specified fee Project design or construction At the entrance - mutual funds At the final stage - implementation Long – term public - private entity relationship Individual contracts between public and private institution within a process of co-manufacturing, and co-implementation of specially designed projects on the long-term basis

Main global PPP projects * Transport system Education Medicine Infrastructure development Regional Development Energy supply *Balfour Beatty, Gr. Br.

Harmonization of rules and regulations Financial institutions and their activity Markets and its participants Clearing/settlements procedures Financial instruments and their implementation Anti – corruption/ anti – laundering measures Corporate and project finance Tax regulation Offshore/Shadow banking Etc.…………

Ways of cooperation on the basis of harmonized principles Financial support of the projects Export - finance Guaranties issuance Multilateral project - finance Syndicated lawns SCO Factoring & Leasing Public-private partnership JV production Funds management Etc.….

To move forward successfully It is worth while setting up the BRICS Advisory Committee (AC) that will promote development of BRICS institutional foundation as well as harmonization of relationship on the basis of mutual principles of cooperation in banking, finance and technology transfers It is important to harmonize main principles of banking and financial markets

BRICS AC developments Contribution to the improvement of spatial infrastructure Facilitation of interaction and information exchange on financial markets, banking and technology transfers Assistance to the security and transparency of financial and economic cooperation Support to the communication network

Thank You for the attention jiz4@yandex.ru