July 16, 2014: Leaders of the BRICS group who met recently announced the launch of a new BRICS Development Bank to counterweight the Western led financial institutions. The leaders of Brazil, Russia, India, China and South Africa which are considered to be emerging powers on Tuesday announced the launch of the new bank also further announced that the banks headquarters would be in Shanghai.
Russian President Vladimir Putin commented on the agreement as “a very powerful way to prevent new economic difficulties” and Brazilian President Dilma Rousseff commented that “These initiatives show that, despite our diversity, our countries are committed to a solid and productive association.”
BRICS nations first unveiled their plans for setting up a Development Bank and would be considered as a mini IMF. The development bank will have initial capital of $50 billion. This would be raised to $100 billion, funded equally by each nation.
The first president will be Indian while the first board chair will be from Brazil. An Africa Regional Centre of BRICS Development Bank will be based in South Africa. The role of BRICS Development Bank will be to help emerging and developing nations mobilize resources for infrastructure and sustainable development projects.
