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BRICS summit to discuss creation of development bank with 50bn initial capital

Tuesday, March 26th 2013 - 05:48 UTC
Full article 8 comments
President Dilma Rousseff confirmed attendance President Dilma Rousseff confirmed attendance

Brazilian President Dilma Rousseff will attend this week's BRICS summit of five emerging powers hosted by South Africa to discuss creation of their own development bank, the Planalto office announced.

Rousseff will join Chinese President Xi Jinping, Indian Prime Minister Manmohan Singh, Russian President Vladimir Putin and South African President Jacob Zuma in Durban on Wednesday.

The talks will focus on how to spur development and reform international financial institutions such as the International Monetary Fund. The leaders will also discuss security issues.

But the top agenda item is likely to be the establishment of a development bank, meant to fund infrastructure and development projects in member states and developing nations, and a joint foreign reserves fund.

Last month, a senior South African diplomat said the five BRICS nations were considering a capital investment of 50 billion dollars.

Last week, Brazilian Trade and Industry Minister Fernando Pimentel said Brazil and China plan to sign a bilateral accord in Durban to promote trade in their national currencies.

With a combined GDP totaling around 14 trillion dollars, the BRICS have accounted for 30% of global economic growth since Goldman Sachs coined the BRIC acronym in 2001.

Last year, intra-BRICS trade soared to 282 billion, up from only 27 billion 10 years ago.
And Brazil's trade with its BRICS partners totaled 91 billion last year, up from 7.6 billion in 2002, according to the Brazilian presidency.
 

Top Comments

Disclaimer & comment rules
  • Condorito

    Not sure by which criteria South Africa has been appended on to the BRIC.
    Token African nation?

    Mar 26th, 2013 - 12:51 pm 0
  • yankeeboy

    This is have the same outcome as Bank of the South which nobody wants to talk about any longer.
    All of these wannabe big boys should concentrate on the internals of their own country rather than spending time and effort on projects doomed to failure.
    All of them have economies on the brink of failure and rife with corruption. They can never succeed until they eradicate the corruption and move the masses of illiterate slum dwellers into the middle class.

    Mar 26th, 2013 - 01:32 pm 0
  • mastershakejb

    I think we all know which country will be providing that 50 bn (china), and which country will be borrowing it (brazil).

    Mar 26th, 2013 - 03:44 pm 0
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