BRICS New Development Bank

Ufa summit: BRICS leaders walk the talk, New Development Bank to lend by 2016

July 9, 2015July 20, 2015 - by India Writes Network

Reinforcing their commitment to remapping the global financial landscape, the leaders of the BRICS group of emerging powers declared operationalized their two signature initiatives the New Development Bank (NDB) and Contingent Reserve Agreement(CRA), saying these institutions will act as a global safety net amid fragile economic recovery. “We welcome the substantive progress that was made since the Fortaleza Summit on 15 July 2014 during the Brazilian BRICS Chairmanship, especially the establishment of BRICS financial institutions: the New Development Bank (NDB) and the Contingent Reserves Arrangement (CRA). The Ufa Summit marks their entry into force,” said the Ufa Declaration. Amid fragile global recovery, the BRICS also formally adopted strategic economic partnership which will upscale trade and investment among emerging economies and positioned them as the future hub of economic growth.
The 7th BRICS summit has imparted a big push to the ongoing project of recasting the global financial system and underscored the centrality of emerging powers in this process.

It’s China’s moment as BRICS Bank gets ready for launch

July 1, 2015July 1, 2015 - by India Writes Network

It seems to be a golden period for China with yet another non-Bretton Woods institution challenging the West-dominated international financial institutions which have controlled the global financial system post 1945. Two days after 50 countries signed on to become members of the China-led Asian Infrastructure Investment Bank, the Chinese Parliament has ratified the creation of the New Development Bank of BRICS countries. The parliaments of India and Russia have already ratified the NDB, which will be headquartered in Shanghai, and will have an Indian as the CEO of the newly created institution.
With the setting up of these two banks, China has scored a point against the US and the West which have been ignoring the BRICS’ appeal for greater voting rights in the IMF and reform of global financial governance system. The NDB’s shareholding is on an equitable basis, with China, India, Brazil and South Africa contributing 20 per cent of the start-up capital of $50 billion, with a goal to reach a capitalization of US$100 billion.
The formal launch of NDB and AIIB is set to recast global financial landscape. Some will contend that 2015 seems to be the year of China when it became a game changer by hosting two new multilateral banks of the global South.

It’s time for Latin America: Indian diplomacy on upswing

July 17, 2014July 17, 2014 - by Manish Chand

Distances never came in the way of love affairs from blossoming or diplomacy’s perennial drive to interlink dreams and destines. Invoking India’s sage poet Rabindranath Tagore and Pablo Neruda, the beloved poet of desire, India’s Prime Minister Narendra Modi has launched a multi-pronged Latin America charm offensive to deepen New Delhi’s engagement with this emerging growth pole of the world.
In a well-received speech in Brasilia at the BRICS’ outreach meeting with the leaders of South American countries July 16, Mr Modi offered an exhilarating brew of trade, IT, tele-medicine and capacity building to South America, which he called
“this great continent; of beauty, opportunities and warm people.”