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

IS Militants Release 49 Turkish Hostages

Turkey's state-run Anadolu news agency reports that no ransom was paid and no conditions accepted for the hostages' release; few details of the release are known More

Photogallery IS Attacks Send Thousands of Syrian Kurds Fleeing to Turkey

Syrian Observatory for Human Rights says more than 300 Kurdish fighters crossed into Syria from Turkey to defend a Kurdish area from attack by the Islamic militants More

Video Sierra Leone's Ebola Lockdown Continues

Thousands of health workers are going door to door in the West African country of 6 million, informing people of how to avoid Ebola, handing out soap 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.
Fears Ebola Outbreak ‘Beyond Our Capability to Contain’i
X
Jeff Seldin
September 20, 2014 10:28 PM
Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Fears Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Obama Goes to UN With Islamic State, Ebola on Agenda

President Obama goes to the United Nations General Assembly to rally nations to support a coalition against Islamic State militants in Iraq and Syria. He also will look for nations to back his plan to fight the Ebola virus in West Africa. As VOA White House correspondent Luis Ramirez reports, Obama’s efforts reflect new moves by the U.S. administration to take a leading role in addressing world crises.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7768
JPY
USD
108.84
GBP
USD
0.6124
CAD
USD
1.0999
INR
USD
61.042

Rates may not be current.