BRICS summit to explore creation of “World Bank” like bank for southern hemisphere
The is an ambitious project for the BRIC countries that is made up of: Brazil, Russia, India, China and South Africa. They do not discount the efforts and helpfulness of the current World Bank that was setup by the U.S. and allies to help give assistance to lower developed countries that historically have had a very difficult time securing financing for development and infrastructure project that tend to create jobs and higher standards of living for the local population.
In the article, it is cited that the demand for these services are much more great that the availability of funding, this is what is driving the BRICS to formally starting discussing the formation of this bank based on the “World Bank” model. As long as the assistance is given at rates that can be paid back so these nations come out in better shape than before.
Al-Jazeera – The proposal of a development bank is high on the agenda at the summit of the five BRICS bloc nations – Brazil, Russia, India, China and South Africa – starting on Thursday in New Delhi.
The proposal for a “South-South” development bank in the mould of the World Bank is one of the main points to be discussed by the group of five rising powers at the fourth BRICS summit.
The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said.
“What will be discussed (in New Delhi) is the possibility of setting up a BRICS development bank for infrastructure projects, development, not only in member countries but also in developing countries,” Maria Edileuza Fonteneles Reis, a senior Brazilian foreign ministry official, said.
Fernando Pimentel, the Brazilian industry and trade minister, told reporters in Brasilia last week, “the proposal to set up a BRICS bank, an international, investment bank of these five countries,” is the main item on the agenda.
He said that the countries would sign a deal at the summit to study the creation of the bank.