Millennium Post

BRICS announces power shift with new global bank

Think tanks of five member –Brazil, Russia, India, China and South Africa – BRICS bloc, representing the emerging economies, reached consensus on creating a BRICS development bank to complement existing global financial institutions like World Bank.

Liu Youfa, deputy director of the China Institute of International Studies, said, 'At the previous forum before the BRICS summit meeting in March, we were still discussing whether to create this bank, but now we are talking about how to create this bank.

'The consensus was reached between experts from the think tanks from five emerging world economic powers during the two two-day forum held this week at Chongqing city in China,' Chinese state run Xinhua news agency reported on Tuesday.

The 2012 BRICS Think-Tanks Forum is a follow up to the understanding reached at the BRICS leaders summit in New Delhi in March this year to consider the possibility of creating a new development bank.

Being the first think-tank forum of its kind, briefed to advise governments of each BRICS country, experts at the event said that their agreement on the necessity and practicality of creating the bank would be presented to officials for further action.

H H S Viswanathan, a fellow of India's Observer Research Foundation, who took part in the meeting, said no report was worked out at the meeting. India expects to see the bank established as soon as possible, he was quoted by Xinhua as saying.

Although no timetable was set, a road map has become clear after this week's forum and all five sides are clear what to do next that is to figure out the form of organisation for the bank, equity shares, head office and other issues, he said.

Liu Youfa said the first of the concerns was defining the legal status of the bank, the second was to explain its purpose, and the third was about how the bank should be run, its capitalisation and other specific matters.
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