According to Indian Prime Minister Narendra Modi, the newly set up New Development Bank will address the financial needs of emerging economies.
If you don’t know already, BRICS nations have been setting up a $50 billion bank named New Development Bank to rival the World Bank. What was the main objective behind this movie? Mainly BRICS countries didn’t want to be too dependent on the World Bank. Besides that, BRICS countries wanted to protect the interest of the emerging economies in the volatile global scenario. This bank is meant to serve the needs of the emerging economies. Indian Prime Minister Narendra Modi declared that the bank will deal with the needs of the countries that are part of BRICS.
BRICS nations constitute Brazil, Russia, India, China and South Africa. Today they reviewed the progress of setting up the bank. They also reviewed the $100 billion liquidity reserve fund. BRICS countries have ambitious plans as they know that they can play a big role as emerging economies. They believe that their voice needs to be heard in the global scene. Especially since even BRICS countries are facing 3rd Global Financial Crisis – you can read more about here.
This meeting happened before the G20 meet, where 20 biggest world economies meet in Antalya.
At the meet, representatives of these countries discussed about the progress made in setting up the New Development Bank. The bank will have an initial deposit of $50 billion. The main purpose of this bank is to serve the needs of emerging economies. This new bank will be headquartered in China. However, India will be in charge of the first presidency, which will be transferred to other BRICS countries on a rotation basis.
Mr. Modi said that India understands the significance of BRICS. He said that his country is honored to be the Chairman of BRICS starting from Feb 1st, 2016. He added that his country would like to continue the great work done its predecessors as the head of the union. PM Modi said this at the meeting held in Antalya.
According to Modi, India will take BRICS chairmanship with the seriousness it deserves and withhold the great values attached to it. During India’s reign, India will be seeking solutions that are inclusive, responsive and collective, he said. That’s exactly what BRICS stands for and India will honor it, said the PM.
Besides Mr. Modi, the Presidents of Russia, China, Brazil and South Africa attended this high profile meeting. They met ahead of G20 meet to review the progress they have made in setting up the bank, which has been a big priority for the BRICS nations since the start.
Mr. Modi talked about the skepticism BRICS faced in the initial days. Reminiscing those days, Modi added that BRICS stands tall today with greater purpose. He said that the relevance of BRICS has increased with the ever changing global scenario. BRICS countries managed to alleviate the doubts with solid action and this was extremely important in the wake of global challenges, Modi added in his speech at the meet. The proposed bank will increase its capital to $100 billion at a few years’ time. They want this bank to function as an alternative to the World Bank, which often bullies the emerging economies. The decision to start the bank was finalized in the Ulfa (Russia) meet in July.