The 6th BRICS summit is the sixth annual diplomatic meeting of the
BRICS, a grouping of major emerging economies that includes Brazil, Russia,
India, China and South Africa.
It is hosted by Brazil, as the first host country of the current
five-year summit cycle the host city is Fortaleza.
The theme chosen for our discussions was "Inclusive
Growth: Sustainable Solutions”.
Leaders of the BRICS emerging market nations have agreed to create a
multilateral New Development Bank (NDB) for infrastructure needs.
The New Development Bank (NDB), formerly referred to
as the BRICS Development Bank, is a proposed multilateral development bank
operated by the BRICS states (Brazil, Russia, India, China and South Africa) as
an alternative to the existing World Bank and International Monetary Fund.
The Bank is setup to foster greater financial and development
cooperation among the five emerging markets. It would be headquartered in
Shanghai, China and the first chief executive will come from India.
What is New Development Bank (NDB)?
It is a bank set up by the world’s leading emerging economies aimed at
funding infrastructure projects in developing nations.
What is the contingent reserve arrangement (CRA)?
The five countries will set up a $100 –bn pool of currency reserves to
help countries forestall short-term liquidity pressures.
How will be the CRA be funded?
China, the region’s largest economy, will contribute $41 bn to the CRA.
Russia, India, Brazil will contribute $18 bn each, while South Africa will
contribute $5 bn.
Where will be the bank based?
The New Development Bank will be based in Shanghai, China.
How will it be governed?
India will preside over its operations for the first five years,
followed by Brazil and then Russia. It is scheduled to start lending in 2016.
How will it be funded?
The bank will begin with $50 bn divided equally between its five founder
members. Another $50 bn will come from new members.
New areas of cooperation to be explored
- Mutual recognition of Higher Education Degrees and Diplomas;
- Labor and Employment, Social Security, Social Inclusion Public
Policies;
- Foreign Policy Planning Dialogue;
- Insurance and reinsurance;
- Seminar of Experts on E-commerce.
ITS GLOBAL PEERS
1. International Monetary Fund (IMF)
History:
· The IMF was conceived in July 1944 when representatives of 45 countries
met in Bretton Woods in the US to establish a framework for International
economic cooperation.
Mandate:
· Its mandate to oversee the international monetary system and promote
excahanhe stability among its members countries.
Member Countries – 182
Employees – 2,300
Headquarter – Washington DC, US
2. World Bank
History
· Conceived in July 1944, it is initially focused on electric power and
transportation projects, but later diversified its activities, acquiring new
insights into the development process.
Mandate:
· It seeks to promote economic development projects of the world’s poorer
countries thorugh long term financing.
Member countries – 180
Employees – 7,000
Headquarter – Washington DC, US
3. Asian Development
Bank (ADB)
History
· Conceived in the early 1960s to foster economic growth and cooperation
in the Asian region, ADB opened on December 19, 1966 with 31 members.
Mandate:
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· ADB provides loans for developing member countries in 5 core areas:
infrastructure, environment, regional cooperation and integration, finance
sector development, education.
Member Countries – 67
Employees – 3,062
Headquarter – Manila, Philippines
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