News / Economy

New Development Bank Likely to Top BRICS Summit Agenda

New Development Bank Likely to Top Agenda of BRICS Summit in Brazili
X
Mariama Diallo
July 12, 2014 3:58 AM
As Brazilian President Dilma Rousseff prepares for World Cup closing ceremonies on Sunday, she is also working on another big event. Her country will host the sixth annual BRICS summit on Monday. BRICS, the acronym for a group of five emerging national economies with significant influence on regional and global affairs, includes Brazil, Russia, India, China and South Africa. VOA's Mariama Diallo looks into the issues that will be discussed during the two-day meeting.
New Development Bank Likely to Top Agenda of BRICS Summit in Brazil
Mariama Diallo

As Brazilian President Dilma Rousseff prepares for World Cup closing ceremonies on Sunday, she also is working on another big event. Her country will host the sixth annual BRICS summit on Monday. BRICS, the acronym for a group of five emerging national economies with significant influence on regional and global affairs, includes Brazil, Russia, India, China and South Africa.

The group of five will convene for the two-day meeting in the northeastern Brazilian city of Fortaleza. Internal cooperation and sustainable development are likely to top the agenda of the two-day summit, said Harold Trinkunas of the Brookings Institution.

“We should expect to see the announcement of a major new multilateral development bank in which the five-member state will each contribute a certain amount of capital -- up to $100 billion total over a number of years. There is also some discussion of setting up a contingent reserve authority which would sort of be an alternative to the IMF," said Trinkunas.

Discussions to create a lending institution similar to the World Bank started in New Delhi two years ago, but the Indian government says nothing is set in stone yet. Sujata Mehta, with the country’s Foreign Ministry, said, "We are still at the stage when we are negotiating it, so I wouldn't want to speculate what would be the roadmap we would be utilizing."

Ross Anthony, of the Center for Chinese Studies at South Africa's Stellenbosch University, said establishing the bank would help the BRICS countries achieve tangible economic benefits.

"Without a bank, without something material that backs up rhetoric of these five economies grouping together, BRICS will remain more of a talking club than something more substantial," he said.

However, setting up a bank of that size and reach is not likely to yield immediate results.

“Most of the other successful multi-lateral development banks that we know of, such as the World Bank, really took many years, decades even to really become fully operational and consolidated and establish a global reputation as lenders,” said Trinkunas.

There is also concern about economic growth slowing in most of the BRICS countries, but Trinkunas said most of the countries have large foreign currency reserves and are not expected to enter a major crisis anytime soon.

Meanwhile, some critics say that as important as economic development issues are, international affairs issues also should be discussed. Russia's recent annexation of Crimea is one example. While the United States and its European allies heavily criticized Russia, reaction from the BRICS countries was almost non-existent.

There are also talks of adding more countries to the group, including Indonesia, Turkey and Nigeria.

 

 


 

 

You May Like

Turbulent Transition Imperils Tunisia’s Arab Spring Gains

Critics say new anti-terrorism laws worsen Tunisia's situation while others put faith in country’s vibrant civil organizations, women’s movement More

Burundi’s Political Crisis May Become Humanitarian One

United Nations aid agencies issue warning as deadly violence sends tens of thousands fleeing More

Yemenis Adjust to Life Under Houthi Rule

Locals want warring parties to strike deal to stop bloodletting before deciding how country is governed More

This forum has been closed.
Comment Sorting
Comments
     
by: Socrates from: Australia
July 13, 2014 4:06 PM
All them want to be the group bank leader.All of them are
most corrupted countries.Five of them come from FOUR different civilizations.Thus, let wait and see how they will get along ?
In Response

by: William Li from: Canada
July 13, 2014 11:27 PM
China is the obvious leader, because China's economy is bigger than all other four add up, and China's foreign currency reserve is also three times bigger than all other four add up. Even China's economy size is the biggest, Chinas growth rate is also the fastest. It's just a matter of time that China domines the world!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Texas Town Residents Told to 'Just Leave' Ahead of Flood Threati
X
Greg Flakus
May 29, 2015 11:24 PM
Water from heavy rain in eastern and central Texas is now swelling rivers that flow into the Gulf of Mexico, threatening towns along their banks. VOA’s Greg Flakus visited the town of Wharton, southwest of Houston, where the Colorado River is close to cresting.
Video

Video Texas Town Residents Told to 'Just Leave' Ahead of Flood Threat

Water from heavy rain in eastern and central Texas is now swelling rivers that flow into the Gulf of Mexico, threatening towns along their banks. VOA’s Greg Flakus visited the town of Wharton, southwest of Houston, where the Colorado River is close to cresting.
Video

Video New York's One World Trade Center Observatory Opens to Public

From New Jersey to Long Island, from Northern suburbs to the Atlantic Ocean, with all of New York City in-between.  That view became available to the public Friday as the One World Trade Center Observatory opened in New York -- atop the replacement for the buildings destroyed in the September 11, 2001, attacks.  VOA’s Bernard Shusman reports.
Video

Video Seoul Sponsors Korean Unification Fair

With inter-Korean relations deteriorating over the North’s nuclear program, past military provocations and human rights abuses, many Koreans still hold out hope for eventual peaceful re-unification. VOA’s Brian Padden visited a “unification fair” held this week in Seoul, where border communities promoted the benefits of increased cooperation.
Video

Video Purple Door Coffeeshop: Changing Lives One Cup at a Time

For a quarter of his life, Kevin Persons lived on the street. Today, he is working behind the counter of an espresso bar, serving coffee and working to transition off the streets and into a home. Paul Vargas reports for VOA.
Video

Video Modular Robot Getting Closer to Reality

A robot being developed at Carnegie Mellon University has evolved into a multi-legged modular mechanical snake, able to move over rugged surfaces and explore the surroundings. Scientists say such machines could someday help in search and rescue operations. VOA’s George Putic reports.
Video

Video Shanghai Hosts Big Consumer Electronics Show

Electronic gadgets are a huge success in China, judging by the first Asian Consumer Electronics Show, held this week in Shanghai. Over the course of two days, more than 20,000 visitors watched, tested and played with useful and some less-useful electronic devices exhibited by about 200 manufacturers. VOA’s George Putic has more.
Video

Video Forced to Return Home, Afghan Refugees Face Increased Hardship

Undocumented refugees returning to Afghanistan from Pakistan have no jobs, no support system, and no home return to, and international aid agencies say they and the government are overwhelmed and under-resourced. Ayesha Tanzeem has more from Kabul.
Video

Video Britain Makes Controversial Move to Crack Down on Extremism

Britain is moving to tighten controls on extremist rhetoric, even when it does not incite violence or hatred -- a move that some are concerned might unduly restrict basic freedoms. It is an issue many countries are grappling with as extremist groups gain power in the Middle East, fueled in part by donations and fighters from the West. VOA’s Al Pessin reports from London.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video Al-Shabab Recruitment Drive Still on In Kenya

The al-Shabab militants that have long battled for control of Somalia also have recruited thousands of young people in Kenya, leaving many families disconsolate. Mohammed Yusuf recently visited the Kenyan town of Isiolo, and met with relatives of those recruited, as well as a many who have helped with the recruiting.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.

VOA Blogs

World Currencies

EUR
USD
0.9115
JPY
USD
123.92
GBP
USD
0.6554
CAD
USD
1.2443
INR
USD
63.800

Rates may not be current.