BRICS 2014, VI BRICS Summit, Sixth BRICS Summit
BRICS Development Bank will be named as New Development Bank (NBD)
Brasilia, Brazil: All set for launching of BRICS Development Bank that will be named as New Development Bank (NBD) in Brasilia during Sixth BRICS Summit (BRICS 2014). This Bank will be an option for emerging economies of Brasil, Russia, India, China and South Africa to support each other and developing nations. Vladimir Putin, President Russia, Narendra Modi, Prime Minister India, Xi Jinping, President China and Jacob Zuma, President South Africa and Brazilian President Dilma Rousseff launch this New Development Bank as a parallel economic support system for minimising dependence on World Bank and International Monitory Fund (IMF).
World Bank, Asian Development bank and IMF are considered as financial tools of NATO political designs and recent crises of Ukraine created more concerns about IMF and World Bank about how they are used for scoring political mileage and political agendas.
“The main topic on the agenda of VI BRICS Summit is setting up the BRICS Development Bank which would be a parallel financial institution to the World Bank and IMF”, believe financial experts of USA and European Union who are raising different questions and considering this launching a failure if BRICS countries do not decide what currency will be used by this proposed Bank.
The establishment of the bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa on 27 March 2013. Among its goals is to provide funding for infrastructure projects and create a “Contingent Reserve Arrangement” worth US$100 billion which will help member countries counteract future financial shocks. This fund will consist of $10 billion of “paid-in capital” ($2 billion from each member to be provided over seven years) and an additional $40 billion to be “paid upon request”.
The BRICS summit will be preceded by a number of events which will see finance ministers and central bank governors meeting. In addition there will be meetings of the BRICS Business Forum and Business Council; as well as the BRICS Financial Forum, which groups the existing development banks of BRICS member countries.
The BRICS Business Council, which was launched at the Durban summit last year, would table a report on how the five governments could make it easier for BRICS businesses to thrive in these countries.
On Tuesday the leaders of the BRICS will discuss international political, economic and financial issues. The session will be followed by the event’s official photo and a working lunch. The afternoon begins with the official signing ceremony, followed by a plenary session.
The five countries boast nearly half the world’s population and account for about 20 per cent of global GDP, giving the group considerable heft.
Together, BRICS represents 26% of the planet’s land mass, and is home to 46% of the world’s population.
Regarding economic growth, BRICs are ahead of the projections made in 2001 (South Africa not included): 18% of the world’s GDP, above Goldman Sachs’s forecast of 14,2%.
According to statistics of the World Trade Organization (WTO), the participation of BRICS in global exports more than doubled between 2001 and 2011, from 8% to 16%. In those eleven years, their total exports have grown more than 500%, while total global exports grew 195% in the same period. Between 2002 and 2012, intra-BRICS trade increased 922%, from US$ 27 to 276 billion, while between 2010-2012, BRICS´ international trade rose 29%, from US$ 4.7 to 6.1 trillion dollars.