Move Over, IMF: BRICS Bank Aims to Rewrite the Rules of Development
BY Ana Swanson, Shrey Verma JULY 11, 2014
On July 15,
the action in Fortaleza will shift from the football pitch to the
political high table. The seaside city that has hosted many of this
year’s FIFA World Cup games is scheduled to hold the
2014 BRICS Summit, where leaders from Brazil, Russia, India, China,
and South Africa will meet to establish a long-awaited development bank
that aims to balance the influence of the IMF and World Bank.
Called “New Development Bank,” the BRICS Bank is expected to foster greater financial
and development cooperation between emerging markets. The plans have yet to be
finalized, but reports say each of the BRICS countries may contribute $10 billion in initial
capital to the entity, which will have a maximum value of $100 billion. The bank
will also establish a $100 billion reserve fund, with China contributing $41 billion,
Brazil, Russia and India giving $18 billion each, and South Africa contributing
$5 billion.
http://southasia.foreignpolicy.com/posts/2014/07/11/move_over_imf_brics_bank_aims_to_rewrite_the_rules_of_development
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