1. 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

2. 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

3. 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

4. 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

5. 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

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

7. 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

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

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

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

11. Extension of BRICS national currencies as an essential challenge

12. 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

13. 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.

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

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

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

17. 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

18. 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

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

20. Silk road

21. The Northern sea route

22. 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

23. 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

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

25. 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.…………

26. 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.….

27. 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

28. 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

29. Thank You for the attention