BRICS BANK

Leaders of the BRICS nations - Brazil, Russia, India, China and South Africa - made the decision to create the new BRICS bank at their meeting on 27th March 2013.
  
It is assumed that the present economic crisis has led to a great strengthening of the power of the World Bank and the IMF. The existing international financing institutions are largely dominated by the developed nations..BRICS  Bank will play a vital role in the developing nations economy which will significantly raise the GDP and the other economic factors of the nations that results in ultimate growth of the BRICS as the next super power nations.

This also increases the healthy competitive strategies between the developing and the developed nations. More the competitions are, more the growth occurs. It can be clearly believed that in the long term the bank could have a significant impact.

China holds vast foreign exchange reserves and is likely to be, in some manner or other, the dominant player in the BRICS bank. As the weakest BRICS member, South Africa may have the most to gain from establishing the bank.

BRICS bank could potentially be a lifeline for the difficulties faced by the countries such as poor infrastructure and so on. It is time the new international institutions become sensitive to the needs of the poorer countries.

The world does not need more non-transparent public institutions. Modern democratic funding criteria require that such a bank must help develop a healthy relationship between governments, civil society organizations and popular movements. The bank’s launch is not only a matter of economics. It also reflects a new political space thanks to the fragility of the US and Europe in the wake of the 2008-09 global financial crisis, which has revealed that so-called emergent economies have huge accumulated reserves, due to rising prices of raw materials and high demand in world markets.

It is therefore necessary to embrace the opportunity to create a new development bank that could make a real difference. Even though not all of the countries that will govern it have so far been central to global capitalism, overall they have promising qualities.

The time has come for civil society across the five BRICS countries to work preemptively and ensure the creation of a BRICS development bank that is not only another new mega financial institution, but also the best opportunity for the developing nations to be the developed nations very soon.

Article By

Annapoorani

IInd MIB

PSGCAS