Do you think it will shift the balance of power?
Last week, the BRICS members of emerging economies signed the long anticipated document to create the $100 billion development bank designed to influence western based lending and provide funds to each nations investment in infrastructure and development projects.
Each country will input an equal share into establishing the start-up capital of $50 billion and unlike the IMF or World Bank, have an equal say, regardless of GDP size. The goal is to reach $100 billion and break the dominance of the US dollar in global trade as well as dollar-backed institutions such as the International Monetary Fund (IMF) and the World Bank, both of which BRICS countries have little influence within.
The economies of BRICS members Brazil, Russia, India, China and South Africa represent 42% of the world’s population and account for 11 percent of global capital investment, and trade turnover almost doubled in the last five years. Membership may not just be limited to just BRICS nations, either and could include future members in Other Countries Emerging Markets Blocs, such as Mexico, Indonesia, or Argentina once it Sorts out ITS Debt Burden.
China will contribute the lion’s share, about $ 41 billion, Russia, Brazil and India will chip in $ 18 billion, and South Africa, the newest member of the economic bloc, will contribute $ 5 billion.
The idea is that the creation of the bank will lessen dependence on the West and create a more multi-polar world, at least financially. President Rousseff said “We want equal Rights and Justice…. The IMF should urgently revise Distribution of voting Rights to Reflect the Importance of Emerging Economies globally,”