BRICS development bank favoured to boost trade
New Delhi, Dec 5 (IANS) With 40 percent of the world market driven by emerging economies in the BRICS nations, including India, there is need for financial cooperation in the five-nation bloc and setting up of a common development bank, experts said Wednesday.
According to speakers from New Delhi, Moscow and Beijing, at a video conference on "BRICS: Anti Crisis Measures in Future", the BRICS Development Bank would help in promoting growth as well as boost trade between the five countries - Brazil, Russia, India, China and South Africa.
Vyacheslav Trubnikov, former Russian envoy to India, said via video link from Moscow that once the BRICS Development Bank is set up it should be ensured that the proceeds are not "bureaucratised" and it "works without any red tape".
The European economic slowdown can impact BRICS countries, but the joint development bank would give money for R&D and support to students, he added.
According to Nandan Unnikrishnan, vice president, Observer Research Foundation, while setting up the bank was a "good idea", there were "philosophical and logistical problems" that needed to be looked into.
"What will the bank do?...Will it supplant or supplement the World Bank and International Monetary Fund (IMF)?" Unnikrishnan asked.
He said the "biggest problem" would be to decide where to locate it. "We will need to have a headquarters and staff...these are ticklish issues. The bank should also be commercially viable," he added.
H.H.S. Viswanathan, distinguished fellow of the foundation, said intra-BRICS trade had grown 15 times from 2001, when South Africa was not a member, to 2011.
"BRICS aims to reform the global financial institutions, the World Bank and the IMF. Setting up the BRICS Development Bank, an idea propounded by Prime Minister Manmohan Singh, would help us in using the huge savings of the countries of the bloc," he said.
Viswanathan also said that cooperation between the five countries was continuing in the field of health, energy, food security and people to people. "There is a lot of progress," he said.
Chinese speaker Xu Tsiyuan, an expert in world finance from the Chinese Academy of Social Sciences, said Beijing has $3 trillion in forex reserves.
"We are thinking what to do with so much forex reserves. China has a lot of expertise in infrastructure building, like railways, highways, airports. Maybe we can have cooperation with BRICS countries to do projects in these areas," Xu said.
With the West, including the US, hit by an economic slowdown and China also suffering, Beijing was looking for newer markets. "BRICS is very important, its volume in world market is 40 percent," Xu said.
Read More: World Bank | Bank Bazar | Bank Road | Dewas Bank Note Press | State Bank Of Hyderabad | State Bank Of India | State Bank Of Mysore Colony | State Bank Colony | Vennar Bank So | Reserve Bank Building | Reserve Bank Nm Ltd. | Rose Bank Ndso | Jalpaiguri Bank . | Red Bank | Bank Harpur So | Bank | Mohana Bank | Right Bank Tenughat S.o. | Akabarpur Bank | Viswanathan Anand
Israeli air strikes kill at least 18 in Gaza after truce collapse
August 21, 2014 at 12:39 AM
Donetsk residents flee the city as shelling intensifies
August 20, 2014 at 11:21 PM
Memories of German WWI atrocities haunt Belgium
August 20, 2014 at 11:06 PM
Lebanese church distributes aid for Iraqi refugees
August 20, 2014 at 11:00 PM
Survivors enlisted in Sierra Leone's Ebola battle
August 20, 2014 at 10:49 PM
"SOUTH AUSTRALIAN PREMIER LAUNCHES DREAM TEAM 15 (NNIS EXCLUSIVE) "
August 20, 2014 at 9:53 PM