[QODLink]
Inside Story

Can BRICS counter the West?

Leaders of Brazil, Russia, India, China, and South Africa launch a $100bn development bank.

Last updated: 18 Jul 2014 12:30
Email Article
Print Article
Share article
Send Feedback

The New Development Bank, announced at the sixth BRICS summit in Fortaleza, Brazil, will fund infrastructure projects in the founding members' countries, as well as in developing nations.

With its headquarters in Shanghai, China, and someone from India expected to be its first president, the bank will start out with $50bn in capital, with each BRICS country contributing an equal amount.

Total capital is expected to eventually double to $100bn.

A so-called Contingent Reserve Arrangement will also be created, in which each country will put in a designated amount in case of a currency crisis.

The contingency fund will amount to $100bn, with China contributing $41bn, followed by Brazil, Russia, and India putting in $18bn each, and South Africa chipping in $5bn.

But do the BRICS nations have enough in common to sustain a shared institution? And will it give them a bigger political say on the world stage?

Presenter: Folly Bah Thibault

Guests: 

Aly-Khan Satchu, economist and CEO of Rich Management.

Rajiv Biswas, senior director and Asia Pacific chief economist for IHS Global Insight.

Simon Freemantle, senior analyst in the Africa political economy unit with Standard Bank.

 

 

 

215

Source:
Al Jazeera
Email Article
Print Article
Share article
Send Feedback
Topics in this article
People
Country
City
Featured on Al Jazeera
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Featured
Assam officials upset that WWII-era Stillwell Road won't be used in transnational highway linking four Asian nations.
Informal health centres are treating thousands of Syrian refugees in Turkey, easing the pressure on local hospitals.
Indonesian and Malaysian authorities are keeping a close eye on local supporters of the hard-line Middle East group.
Wastewater ponds dot the landscape in US states that produce gas; environmentalists say they’re a growing threat.
China President Xi Jinping's Mongolia visit brings accords in the areas of culture, energy, mining and infrastructure.
join our mailing list