1. Text: | Print|

      Leaders discuss BRICS bank

      2014-07-16 08:28 China Daily Web Editor: Qin Dexing
      1

      Institution would help developing countries finance infrastructure

      The widely expected BRICS development bank and contingency fund would alter the contours of global economic governance long dominated by the West, analysts said.[Special coverage]

      Talk has revolved around how much BRICS members (Brazil, Russia, India, China and South Africa) would fund the bank's initial capital, where the headquarters would be and who would head them - details that might be unveiled following discussions by leaders at the ongoing BRICS summit in Brazil.

      Analysts said the five emerging countries are frustrated by the failure of international financial institutions to fully meet their needs and are attempting to build something new to complement them, rather than replace them.

      "These institutions, seen as counterparts of the Bretton Woods Institutions, the World Bank and the International Monetary Fund, are articulations of the growing assertion of the BRICS nations in the management of the global economy. But the most important aspect of this development would be that it is the first time such institutions are being established by the emerging economies," said Biswajit Dhara, an economics professor at Jawaharlal Nehru University.

      Chen Fengying, director of the Institute of World Economic Studies at the China Institutes of Contemporary International Relations, said: "There are many suspicions. There will surely be problems. But what is important is to start the operation of the two institutions. No matter who says what, we have to do what we believe is right."

      She said the core issue is that changing economic strengths among countries have not been matched by a revamped global governance structure. There have been some changes, such as the establishment of the G20 and voting right reform within the World Bank and IMF, but there have been few fundamental changes in deep-rooted values.

      "I think South Korea keenly felt it," Chen said, referring to the country's negotiation with the IMF for a bailout following the Asian financial crisis in 1998. "They had to accept so many rigorous conditions to secure funds. But when the crisis broke out in the US and Europe, nobody was talking about preconditions for bailouts, like there was nothing wrong that led to the crisis."

      Huang Wei, a researcher at the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, said the planned BRICS development bank would be different from the World Bank and Asian Development Bank. While those two focus on aid to alleviate poverty in the least developed nations, the BRICS bank would focus on development and infrastructure funding.

      "India - the country with the lowest GDP per capita in BRICS - exited the World Bank's aid program in 2012. The five nations have not qualified for most aid but they still have a lot of demand for development," Huang said.

      The other institution expected to be proposed at the BRICS summit is known as the contingency reserve arrangement.

      It could be used during market volatility and significant currency depreciation, but would have a complementary role, along with the IMF or a regional currency swap arrangement, according to Huang.

      When a member is in crisis, the contingency fund would have requirements for bailouts, but it would focus on concrete issues rather than ideology, Huang said.

      "Unlike other institutions that assign voting rights by GDP, China and other nations would pay an equal share to the development bank. That's the Chinese style of doing things, and a way to demonstrate how China could be a responsible great power," Huang said.

      Infrastructure fund

      Also at the summit on Tuesday, Kirill Dmitriev, CEO of the Russian Direct Investment Fund, announced an initiative to form a joint fund to invest in BRICS infrastructure projects.

      "Every BRICS nation has huge potential to develop infrastructure projects, as well as a great need to attract a large volume of equity financing from foreign investors," Dmitriev said.

      "The joint fund can provide equity financing services for projects in the BRICS countries, which will complement the upcoming BRICS development bank," said Dmitriev.

      "It is an important step to further strengthen the relationships among the BRICS countries."

      The amount of financing for the joint fund will be announced in six months.

      "Since infrastructure projects are traditionally capital-intensive, the size of the fund needs to be several billion dollars - but the scale of the projects can be much greater," Dmitriev added.

      Comments (0)
      Most popular in 24h
        Archived Content
      Media partners:

      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.

      主站蜘蛛池模板: 久久亚洲精品国产精品| 国产亚洲欧洲Aⅴ综合一区| 亚洲理论片中文字幕电影| 两个人看的www免费视频| 国产亚洲精久久久久久无码77777| 国产成人亚洲精品无码AV大片| 男人的好看免费观看在线视频| 亚洲a∨无码男人的天堂| 免费国产作爱视频网站| 亚洲伊人久久大香线蕉结合| 国产在线国偷精品产拍免费| 亚洲欧美成人综合久久久| 日日操夜夜操免费视频| 免费无码一区二区| 亚洲精品成人网站在线观看 | 亚洲中文字幕日本无线码 | 四虎免费久久影院| 国产高潮久久免费观看| 亚洲精品无码不卡在线播放HE| 日本一区二区免费看| 亚洲国产品综合人成综合网站| 毛片免费观看的视频在线| 男女男精品网站免费观看| 亚洲人成伊人成综合网久久久| 久久成人a毛片免费观看网站| 亚洲色偷偷偷网站色偷一区| 毛片在线免费视频| 人成电影网在线观看免费| 亚洲Aⅴ无码专区在线观看q| 国产精品视频永久免费播放| 亚洲av最新在线观看网址| 亚洲精品国产福利一二区| 久久国产乱子伦精品免费不卡| 亚洲人成电影网站| 亚洲福利视频一区二区| 久久久免费的精品| 亚洲精品精华液一区二区| 久久99亚洲综合精品首页| 91手机看片国产永久免费| 一级女性全黄久久生活片免费| 亚洲综合一区二区精品导航|