News / Africa

BRICS Development Bank May Take Years

BRICS' heads of state, from left, Brazil's President Dilma Rousseff, Russia's President Vladimir Putin, India's Prime Minister Manmohan Singh, China's President Hu Jintao and South Africa's President Jacob Zuma pose for a group photo at the G-20 Summit inBRICS' heads of state, from left, Brazil's President Dilma Rousseff, Russia's President Vladimir Putin, India's Prime Minister Manmohan Singh, China's President Hu Jintao and South Africa's President Jacob Zuma pose for a group photo at the G-20 Summit in
x
BRICS' heads of state, from left, Brazil's President Dilma Rousseff, Russia's President Vladimir Putin, India's Prime Minister Manmohan Singh, China's President Hu Jintao and South Africa's President Jacob Zuma pose for a group photo at the G-20 Summit in
BRICS' heads of state, from left, Brazil's President Dilma Rousseff, Russia's President Vladimir Putin, India's Prime Minister Manmohan Singh, China's President Hu Jintao and South Africa's President Jacob Zuma pose for a group photo at the G-20 Summit in
Anita Powell
The cornerstone achievement of this year’s BRICS summit is expected to be the foundation of a development bank.  The group, which includes Brazil, Russia, India, China and South Africa, hopes the money can be used to fund infrastructure, but experts say it may take years to develop the bank. 

Officials from the five nations have been meeting regularly to discuss details behind this development bank ahead of the summit in Durban, South Africa later this month.

The BRICS nations are rapidly emerging economies that feel they do not get enough say on the world stage.  Despite their economic clout, none has led the International Monetary Fund or the World Bank.  And India, Brazil and South Africa have all lobbied for a permanent seat on the U.N. Security Council, to no avail.

BRICS

  • The world's five largest emerging economies: Brazil, Russia, India, China, South Africa
  • Total population of BRICS nations is almost 3 billion people
  • Total BRICS GDP is $14 trillion
  • The fifth annual BRICS summit starts March 26 in Durban, South Africa
South Africa’s ambassador to BRICS, Anil Sooklal, says the group is a way of offsetting that historical imbalance by giving each nation a say in the bank.

“One thing is very clear amongst the BRICS member states: that this bank will be collectively owned by all the BRICS countries, and it is not going to be a bank dominated by any one BRICS country.  That is very clear,” Sooklal stressed.

But little is known about the dollars and cents of this proposed financial institution - where it will be based, when it will open, who will receive loans, or even what currency it will use.  Those details are to be finalized at an upcoming summit.

Africa financial services director for consulting firm Ernst and Young, Emilio Pera, says although many of the particulars are yet to be ironed out, the bank is a good idea.
 
“I believe the proposed BRICS-led bank is a very positive development for South Africa and for the the wider Southern Africa," Sooklal explained.  "It provides the opportunity to mobilize funding for infrastructure development, which is needed in most emerging markets, and in particular in South Africa at present, and which would benefit the wider region as well.  It also strengthens the cooperation between the BRICS countries.”

A recent report from South Africa’s Standard Bank says each of the five nations is expected to contribute $10 billion.  In contrast to the IMF and the World Bank, where members contribute relative to the size of their economy and get a share of votes based on that.

But the Standard Bank analysts have asked whether that will lead to a power imbalance.  China’s economy on its own is bigger than that of the four other nations combined.  For China, $10 billion is not a lot of money, it is less than one-eighth of one percent of its gross domestic product.  But for South Africa, the smallest BRICS economy, it is a hefty bill - nearly half of the nation’s education budget.

One of the Standard Bank analysts, Simon Freemantle, says it could be a long time before the bank starts working.

“I think the bank itself has a long process through which it still has to travel in order for it to reach the point where it can extend loans...  But I do not anticipate the formal structural origination of the bank will result immediately from next week’s summit.  So I think it will be some time before they have the capacity to extend loans.”

You May Like

Video Is West Doing Enough to Tackle Islamic State?

There is growing uncertainty over whether West’s response to ISIS is adequate More

China Crackdown on Dual Citizens Causes Concern

New policy encourages reporting people who obtain citizenship in another country, but retain Chinese citizenship; move spurs sharp debate More

Video Coalition to Fight Islamic State Could Reward Assad

Losing ground to Islamic State fighters, Syria's government says it is ready to cooperate with international community More

This forum has been closed.
Comment Sorting
Comments
     
by: Matt
March 19, 2013 10:46 AM
"For China, $10 billion is not a lot of money, it is less than one-eighth of one percent of its gross domestic product. But for South Africa, the smallest BRICS economy, it is a hefty bill - nearly half of the nation’s education budget."

What type of comparison is that? What proportion of South Africa GDP goes to education? Or what proportion of China's education budget would the $10 billion dollars make up?


by: ramalingam venkatraju from: india coimbatore 641001
March 19, 2013 7:29 AM
Let first india learn the economi reforms from china japan,why not russia,,to how get down the debts of world bank,and make india from short fall of education, food, shelter, job income,for all its citizens,how to reduce tax, and how to not create new taxes, how to make government to serve its people atleast health, live healthy,then competing education,good food,shelter, why not een fter indipendence ,ene after from1947,what they were doing, why not japan, and china ataind self sufficency in all such basic sectors,its is all political and political paties do business here no serice in india,

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Is West Doing Enough to Tackle Islamic State?i
X
Henry Ridgwell
August 29, 2014 12:26 AM
U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Pachyderms Play Polo to Raise Money for Elephants

Polo, the ancient team competition typically played on horseback, is known as the “sport of kings.” However, the royal version for one annual event in Thailand swaps the horse for the kingdom’s national symbol - the elephant. VOA Correspondent Steve Herman in Samut Prakan reports that the King’s Cup Elephant Polo tournament is all for a good cause.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.
Video

Video America's Most Popular Artworks Displayed in Public Places

Public places in cities across America were turned into open-air art galleries in August. Pictures of the nation’s most popular artworks were displayed on billboards, bus shelters, subway platforms and more. The idea behind “Art Everywhere,” a collaborative campaign by five major museums is to allow more people to enjoy art and learn about the country’s culture and history. Faiza Elmasry has more.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. Shaikh Azizur Rahman reports from Kolkata.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.

AppleAndroid