News / Economy

BRICS Summit Ends Without Development Bank Deal

BRICS Summit Ends Without Much-Touted Banki
X
March 27, 2013 9:19 PM
The five BRICS nations met in the South African port city of Durban this week to enhance economic cooperation among the developing nations. The summit yielded a number of agreements -- but not the highly-touted development bank officials had promised. With more, here’s VOA’s Anita Powell in Durban.
Anita Powell
The leaders of the five BRICS nations stopped short of establishing a highly-touted development bank at this week’s summit in South Africa, instead saying they would enter “formal negotiations” on the issue.  But the summit did yield some agreements, including big-money bilateral trade deals.

The main objective of this year’s BRICS summit was to be the establishment of a development bank.  South Africa’s finance minister said the negotiations were “done” the night before the summit -- but that was clearly not the case.

South African President Jacob Zuma said Wednesday morning that the five nations -- Brazil, Russia, India, China and South Africa -- would enter “formal negotiations” to establish the bank.  

That moves the issue slightly forward, but still does not address where the bank will be, or how much money each nation will contribute.  Several experts and officials have said the bank will start with $50 billion, divided equally.

“Following the report from our Finance Ministers, we are satisfied that the establishment of a New Development Bank is feasible and viable.  We have agreed to establish the New Development Bank," said Zuma. "The initial capital contribution to the bank should be substantial and sufficient for the bank to be effective in financing infrastructure.”

South African Finance Minister Pravin Gordhan told journalists that the lack of agreement on details was not a failure. “The fact that in one year, you can initiate an idea and bring it to the point where you have five different countries saying, ‘we agree, let’s establish it,” and having established its feasibility and viability, I think is phenomenal progress," he stated. "Which you rarely see around the world moving at that kind of pace.”

He acknowledged, however, that the leaders have not agreed where the bank will be.  His choice?  South Africa, of course, he said with a smile.

The summit also yielded some more concrete deals, including a sheaf of agreements between South Africa and Russia and a multibillion dollar bilateral deal between South Africa and China to build ships in the port city of Durban.

The five leaders also bowed to pressure to make a statement about the violence in Syria, as rights groups and humanitarian agencies had asked them to do.  In a statement, the bloc expressed deep concern, condemned human rights violations and said they believed in a Syria-led political process. They also urged all parties to allow humanitarian access.

Caroline Bracht of the BRICS Research Group, which is based at the University of Toronto, said the group also furthered its cooperation.
 
“In the coming year we can see increased trade coming between the BRICS. And this is not to run competition with the existing trade that the BRICS countries do have with the north, but it’s to sort of enhance the trade that exists already,” said Bracht.

The nations will hold their next summit in Brazil.

You May Like

Philippines, Muslim Rebels Try to Salvage Peace Pact

Peace process faces major setback after botched military operation to find terrorists results in bloody gunbattle between government forces, Moro Islamic Liberation Front fighters More

Republicans Expect Long, Expensive Presidential Battle

Political strategist says eventual winner will be one who can put together strongest coalition of various conservative groups that make up Republican Party More

Video New Wheelchair Is Easier to Use, Increases Mobility

Engineers have come up with a lever-operated design that makes use of easily accessible bicycle technology More

This forum has been closed.
Comment Sorting
Comments
     
by: Karen Hudes
April 03, 2013 10:54 AM
The BRICs have responded appropriately to the breakdown in the rule of law in the international financial system, caused by the failure of the US Congress to carry out its oversight responsibilities.

The House Foreign Affairs Committee should require Voice of America to do a better job informing American citizens how the states are fighting corruption at the federal levels of their government. On January 8, 2013, I informed HFAC that "Taxpayers request transparency on these rule of law issues affecting credit ratings." change.org/petitions/tell-treasury-protect-whistleblowers-at-u-s-taxpayer-funded-international-banks."

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.9211
JPY
USD
119.18
GBP
USD
0.6722
CAD
USD
1.2509
INR
USD
62.518

Rates may not be current.