This refers to the editorial "Global financial alternatives" (October 27). Underlying the establishment of the BRICS New Development Bank and the Asian Infrastructure Investment Bank was the unwillingness of the developed countries to yield a rightful place for the emerging economies. Global financial centres depend on huge Asian funds flows. If new institutions come up, Asian money centres such as Hong Kong and Singapore will grow faster. The requisite financial intermediation will grow on business considerations. Asia also has many intermediating firms. Getting better ratings will only be a matter of time. It augurs well that emergent Asia is forming its own financial institutions.
Apart from emerging economies knowing each other, the resources and expertise from Asia should be of contextual relevance. The long-term gain for Asia will be that the money lying in the western centres will return to Asia for its own infrastructure, industrial and agricultural projects. Since Asian countries do not require any expertise now, they are not associating with the developed countries, as they did in the Asian Development Bank and lost exclusive control. Moreover, it is essential that the new regional institutional architecture is designed and managed imaginatively, keeping in mind the requirement for huge funds.
K U Mada Mumbai
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