16 July 2014

BRICS nations agree to create own development bank

Leaders of the BRICS nations, from left, Russia's President Vladimir Putin, India's Prime Minister Narendra Modi, Brazil's President Dilma Rousseff, China's President Xi Jinping and South Africa's President Jacob Zuma, pose for a group photo during the BRICS summit in Fortaleza, Brazil, Tuesday, July 15, 2014. The leaders of the BRICS nations are expected to officially create a bailout and development fund worth $100 billion. It's meant to be an alternative to the World Bank and the International Monetary Fund, which are seen as being dominated by the U.S. and Europe.
The leaders of five emerging market powers said at a summit Tuesday that they gave final agreement to creating their own development bank worth $100 billion that will have its headquarters in China.
The first president of the New Development Bank will be from India and the position will rotate every five years among Brazil, Russia, India, China and South Africa — the so-called BRICS nations, a joint statement from the leaders said.

BRICS leaders conferred in a closed session earlier in the day at their conference in northeastern Brazil, then announced concrete plans for the bank at an afternoon session open to the press.
The new bank is seen as a strong push by the BRICS against the World Bank and the International Monetary Fund, which the developing world has long complained it far too U.S.- and European-centric.
Russia's President Vladimir Putin greets the media as Brazil's President Dilma Rousseff watches, at the BRICS 2014 summit in Fortaleza, Brazil, Tuesday, July 15, 2014. At the summit beginning Tuesday, Brazil, Russia, India, China and South Africa óthe so-called BRICS countries, will unveil a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.

"Based on sound banking principles, the NDB will strengthen the cooperation among our countries and will supplement the efforts of multilateral and regional financial institutions for global development," the statement said.
Russian Foreign Minister Sergey Lavrov told the Russian news agency ITAR-Tass that the decision "confirmed that BRICS members, while speaking against unilateral actions in the world economy and politics, are not seeking confrontation but propose working out collective approaches toward the resolution of any problems."
The New Development Bank will have an African regional branch in South Africa and eventually other nations would be able to participate.
Brazil's President Dilma Rousseff, left, and China's President Xi Jinping pose for a photo during the BRICS 2014 summit in Fortaleza, Brazil, Tuesday, July 15, 2014. At the summit beginning Tuesday, Brazil, Russia, India, China and South Africa —the so-called BRICS countries, will unveil a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.

The statement also alluded to Brazil's and India's longstanding quest to overhaul the United Nations Security Council, of which China and Russia are two of five permanent members with veto power. Those nations have in the past proved reluctant to endorse Brazil's and India's ambitions, but Tuesday's
Brazil's President Dilma Rousseff, left, poses for a photo with South African President Jacob Zuma at the BRICS 2014 summit in Fortaleza, Brazil, Tuesday, July 15, 2014. At the summit beginning Tuesday, Brazil, Russia, India, China and South Africa óthe so-called BRICS countries, will unveil a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.
statement said the BRICS nations "support their aspiration to play a greater role in the U.N."
Though exhaustive, the joint statement largely steered clear of potentially divisive issues, like the conflict in Ukraine between pro-government and pro-Russia factions.
Brazil's President Dilma Rousseff, greets India's Prime Minister Narendra Modi during the BRICS 2014 summit in Fortaleza, Brazil, Tuesday, July 15, 2014. At the summit beginning Tuesday, Brazil, Russia, India, China and South Africa - the so-called BRICS countries, will unveil a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.

It touched only briefly on the matter, saying the five countries expressed their "deep concern" with the situation in Ukraine and urged "comprehensive dialogue, the de-escalation of the conflict and restraint from all the actors involved, with a view to finding a peaceful political solution, in full compliance with the U.N. Charter and universally recognized human rights and fundamental freedoms." 
(AP)
Tags: , ,