BRICS: Start of New Era
It was a bizarre idea to have another international bank because of past financial crisis. More banks will lead to crowding environment and more credit creation. World hopes for better economical environment and uplifting of every section. International development has deep meaning than just wondering about particular section of world. IMF and World Bank are pretend to do international development. Why we need another bank? What are takeaways of different founding countries from New Development Bank? That has been discloused in BRICS summit.
At 6th BRICS nations Summit new agenda and new path of development carved. BRICS nation contains half of world population and 1/5th GDP of world. But when they looked towards IMF and World Bank, they feel like left apart. Voting issue in both international financial institutes is under dispute, India (2.43%) have less voting rights than Italy (3.31%).This is matter of self-esteem for many developing countries that have more surplus than developed countries. For example china have $4 trillion USD, Brazil have $334 billion USD and India $ 317 billion USD. These countries wanted more voting rights but due to US and UK dominated World Bank and IMF are delaying voting reforms.
New Development bank will be pioneer for regional development in BRICS. It has to cooperate with different financial institute with international and regional background. We should hope for betterment of regional finance environment as there will be more Infrastructure funding. India gets an opportunity to first head the NDB. But with opportunity comes gets responsibility. So for first five year Indians will be responsible for getting decision and formulation of that decision. China and Russia wants to show west world that they are not the only one decision makers in the world.
In his addressing speech, our prime minister promotes the idea of cooperation on not only financial level but also on intellectual, social and linguistic level. He talked about building up International University for BRICS. He also put emphasis on building of linguistic symposium.
BRICS summit achieve many successful things like NDB and resolving many conflicting issues. India increase ties with Russia and China. Hope this will start new era for developing economies and world.