Business Today
Loading...

Consensus reached on setting up BRICS Bank

Think tanks of five member BRICS bloc, representing the emerging economies - Brazil, Russia, India, China and South Africa - reached a consensus on creating a BRICS development bank.

twitter-logoPTI | October 2, 2012 | Updated 18:04 IST

Think tanks of five member BRICS bloc, representing the emerging economies - Brazil, Russia, India, China and South Africa - reached a consensus on creating a BRICS development bank to complement existing global financial institutions like World Bank.

Liu Youfa, deputy director of the China Institute of International Studies, said: "At the previous forum before the BRICS summit meeting in March, we were still discussing whether to create this bank, but now we are talking about how to create this bank. The consensus was reached between experts from the think tanks from five emerging world economic powers during the two two-day forum held this week at Chongqing city in China."

The 2012 BRICS Think-Tanks Forum is a follow up to the understanding reached at the BRICS leaders summit in New Delhi in March this year to consider the possibility of creating a new development bank.

It was decided at the summit to convene expert meetings to explore the possibility, Xinhua reported.

Being the first think-tank forum of its kind, briefed to advise governments of each BRICS country, experts at the event said that their agreement on the necessity and practicality of creating the bank would be presented to officials for further action.

H H S Viswanathan, a fellow of India's Observer Research Foundation, who took part in the meeting, said no report was worked out at the meeting.

But, he said, discussion will surely be included in the report of the next forum, set to take place in South Africa before the next BRICS summit to be held there in 2013.

India expects to see the bank established as soon as possible, he was quoted by Xinhua as saying.

Although no timetable was set, a road map has become clear after this week's forum and all five sides are clear what to do next that is to figure out the form of organisation for the bank, equity shares, head office and other issues, he said.

Liu Youfa said think tanks are a preliminary step in government policy-making and the influence of their ideas in part depends on their feasibility and thoroughness.

According to Liu, the consensus reached at the forum included the need to build a legal framework, establishment of a theoretical framework and the discussion on technical issues.

The first of the concerns was defining the legal status of the bank, the second was to explain its purpose, and the third was about how the bank should be run, its capitalisation and other specific matters, he said.

Leonid Grigoriev, deputy director of the Russian Energy Agency and professor of the Higher School of Economics, said, "We generally agreed to create this bank.

"We scanned all the related issues to be further discussed and formed our opinions on them including issues such as the mode, the capitalisation, the purpose of the bank", he said.

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close