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Page added on July 21, 2015
The BRICS countries just launched a rival to the IMF and World Bank
Shanghai (AFP) – A new bank dedicated to the emerging BRICS countries opened for business in China’s commercial hub of Shanghai on Tuesday, the official Xinhua news agency reported.
The so-called emerging BRICS countries are made up of Brazil, Russia, India, China and South Africa, and their “New Development Bank” has been seen as a challenge to the Washington-based International Monetary Fund and World Bank.
The institution’s management was “working on initiation of operations”, Xinhua quoted bank president K. V. Kamath, formerly a private banker in India, as saying, including “making business policy” and “developing project preparations”.
Operations would begin late this year or early in 2016, he added.
The opening — announced in a short report — comes two weeks after a BRICS summit hosted by Russian President Vladimir Putin.
Moscow — which has suffered huge currency fluctuations and struggled to attract investors since the outbreak of the crisis in Ukraine — sees the bank and a BRICS currency reserve pool as an alternative to international financial institutions such as the IMF and World Bank, which are dominated by the United States.
At the time of the summit, Russian Foreign Minister Sergei Lavrov said in a statement that BRICS “illustrates a new polycentric system of international relations” demonstrating the increasing influence of “new centres of power”.
The BRICS nations represent 40 percent of the world’s population and previously agreed to establish the bank, with estimated capital of $100 billion (90 billion euros).
A Chinese analyst denied the BRICS bank was aimed at challenging other multilateral agencies.
“It’s a complement, instead of a challenge, to existing international institutions,” Li Daxiao, chief economist of Yingda Securities, told AFP.
The BRICS countries have also agreed to set up a $100-billion reserve fund, aimed at shielding them from short-term liquidity pressure and promoting greater financial cooperation.
“It can help avoid another crisis through establishing a fund pool within the BRICS, which can help cushion instability in the currency market,” Li said, referring to the 2008 global economic crisis.
China, the world’s second-largest economy, is also leading the setting up of another new multilateral lender, the Asian Infrastructure Infrastructure Bank (AIIB), which will be headquartered in Beijing.
China will be the biggest AIIB shareholder at about 30 percent, according to the legal framework signed late last month by 50 founding member countries.
The United States and Japan — the world’s largest and third-largest economies, respectively — have declined to join the AIIB.
8 Comments on "The BRICS countries just launched a rival to the IMF and World Bank"
joe on Tue, 21st Jul 2015 6:31 am
Not joining these banks is a mistake. They are counter productive to the notion that free trade capitalism promotes integration and stability. The IMF should not make the mistake of being an imperialist arm of the US financial power, it risks becoming like the old British EAST INDIA COMPANY an almost forgotten organisation that makes the IMF look like peanuts compared to what this company used to do in the world. The real history of corporatism was its emergence from banditry to piracy to privateering to companies to incorporation to limited liability. Their advancement was from their own effort to theft to legal theft to selling shares to raise money to legally steal to pretending that we can invent pretend people who don’t exist that actually do the legal stealing and it’s not really us at all so it’s not our fault so we don’t have to pay.
Does that make sense? No? Welcome to business law.
Rodster on Tue, 21st Jul 2015 6:35 am
The BRICS and AIIB Banks are nothing more than different storefronts for the IMF/WB/BIS. Don’t be fooled, the Bankster Cabal have expanded their operations to the East ! 😉
http://www.rt.com/business/261241-brics-bank-institutions-complement/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome
Rodster on Tue, 21st Jul 2015 6:40 am
And these guys i.e. BRICS and AIIB aren’t doing anything radically different to what we already see. If the BRICS and AIIB were TRULY DIFFERENT they would not have based it’s foundation on $USD and the PBOC would not be expanding it’s economy by printing $25-30 trillion Yuans, nor would China look the other way to a much larger “shadow banking system” versus the US. It’s all a wink, nod and lie. They are all in on the same game which is total world Govt and Banking control.
Makati1 on Tue, 21st Jul 2015 9:15 pm
Rodster, those banks will be switching to the currencies of their member countries soon, if they have not already done so. The two new banks are designed to move the Yuan into reserve status and to cripple the USD. With a base of $200B to start, they have a good chance of accomplishing both goals.
Not to mention that they already have countries lined up to deal with them instead of the WB and IMF, both owned and controlled by the West. Both have been/are used as weapons of destruction to make plundering 3rd world countries easier for the Western elite. The world now sees what they do and now have a way to avoid dealing with them (WB/IMF).
Davy on Tue, 21st Jul 2015 10:07 pm
Rodster, Mak likes to criticize the Banksters. Yet, you associate a banks with his beloved Brics then he is fine with the concept even calling them member countries. Doesn’t that sound so wholesome and friendly “member countries”. Good luck with the yuan as a reserve currency to cripple the USD. That looks a long shot now that China has shown its true colors with their market crash. Mak’s agenda exploded but he is still hanging on to his dream.
Makati1 on Tue, 21st Jul 2015 11:48 pm
FYI:
“China Molds a Supercity Around Beijing”
“At The New York Times, Ian Johnson provides an in-depth look at the creation of Jing-Jin-Ji, a new mega metropolis that will span Beijing, Tianjin, and Hebei. As a part of a comprehensive government plan to stimulate the region’s economy and promote the growth of innovative industries, the new supercity will accommodate over 100 million residents who will be connected across the region with high-speed rail.”
http://chinadigitaltimes.net/2015/07/china-molds-supercity-around-beijing/
Yep! China is going down the tubes…lol.
apneaman on Wed, 22nd Jul 2015 12:51 am
Mak, get back to me on the “supercity” once it’s off the drawing board. In the meantime I’ll file it next to the Manned Mars mission, the singularity, mini ice age, global consciousness awakening and the rest of the increasingly ridiculous magical thinking pronouncements. Kinda curious on the timing of the announcement don’t cha think?
joe on Wed, 22nd Jul 2015 2:33 am
These banks are designed to fund projects which are not commercially viable. What I mean is capital investment. Russia has a vast territory, which could be exploited if they could find the money to gro into its empty vastness. The IMF being a part of the West will not help as its being used to change Russia politically. These new banks can actually fund investment, link up Iran Russia to China and Central Asia, and totally bypass US interests, or co-operate with them, if it wants.
Maybe we are seeing the emergence of the Orwellian Oceania -v- EastAsian rivalry.