BRICS: Working to create a new development bank

BRICS

BRICS The five leaders of the BRICS nations join hands during the official photograph of the 6th BRICS summit in Fortaleza, Brazil, on July 15, 2014. (Photo/AFP)

Creating a new development bank for the BRICS countries is one of the big goals of the five-nation summit underway in Brazil.

It’s a way for developing nations to complement — but also counterbalance — the World Bank and the International Monetary Fund with their own alternative fund. CCTV’S Paulo Cabral reports from the host city of Fortaleza.

Working to create a “development bank”

Creating a development bank for the BRICS countries is one of the stated goals of the five nation summit in Brazil.

For almost seven decades, the International Monetary Fund and the World Bank have been the keys to world financial stability and also to funding infrastructure projects. They also play a role in international politics.

The United States is by far the largest shareholder in both institutions, ahead of the five BRICS countries put together: Brazil,Russia, India, China and South Africa.

Over the last few years, China has significantly increased its shares in the World Bank, and to a lesser degree the other BRICS nations have done the same. Observers hope the leaders at the summit in Fortaleza will be able to announce the creation of their own development bank.

The former chairman of Brazil’s National Development Bank believes that trade and investment are the best way to create connections among the BRICS countries.

Trade among the BRICS countries has already increased nearly ten fold in a decade, up to more than $270 billion in 2012 from $27 billion in 2002. With a new bank, these nations hope to develop connections that could alter the global financial landscape.

The proposed development bank is designed to be a counter-weight to the World Bank.  The bank will be headquartered in Shanghai, China and will be presided by a President who will be from India.  CCTV’s Su Yuting reports with details on the plans by BRICS leaders to start a new bank.

New BRICS development bank to be headquarterd in Shanghai

Leaders of BRICS nations have agreed to establish a BRICS bank named as New Development Bank. It will be headquartered in Shanghai, China. CCTV's Su Yuting reports.

 

For more reaction, CCTV was joined by Marc Weisbrot. He’s the co-director of the Center for Economic and Policy Research in Washington.

Marc Weisbrot talks the BRICS Summit

For more reaction, CCTV was joined by Marc Weisbrot. He's the co-director of the Center for Economic and Policy Research in Washington.

For the very latest on the BRICS summit, CCTV turned to Stephen Gibbs in Fortaleza.

Five nations gather in Brazil for 6th BRICS summit

For the very latest on the BRICS summit, CCTV turned to Stephen Gibbs in Fortaleza.

The Development Bank was one of the key issues that were on the agenda, as the BRICS countries finally decided to place the headquarters in Shanghai. The BRICS organization carefully avoided describing themselves as a political alliance. CCTV’s Stephen Gibbs reports from Fortaleza.

BRICS create a new development bank, headquarters in Shanghai

The Development Bank was one of the key issues that were on the agenda, as the BRICS countries finally decided to place the headquarters in Shanghai. The BRICS organization carefully avoided describing themselves as a political alliance. CCTV's Stephen Gibbs reports from Fortaleza.

 

Follow Stephen Gibbs on Twitter @STHGibbs