South African Standard Bank's Simon Freemantle, Senior Analyst in the African Political Economy Unit, and Jeremy Stevens, an international economist based in Beijing, said in their latest report in Africa Macro that the BRICS development bank is an agenda item which is sure to feature strongly at the Durban summit, guided by the theme "BRICS and Africa -- partnerships for integration and industrialization".
According to Financial times blog , even though key decisions have yet to be made – such as where it would be based and what exactly it would do – some elements are emerging from the discussions, notably the bank's possible capital – $50bn.
The bank is not a counterweight to multilateral development banks—notably the World Bank. Yes, the dominance of the US and Europe in Bretton Woods Institutions is a source of contention for BRICS. However, on this specific score, the envisioned BRICS bank is an auxiliary funding institution—albeit more aligned to BRICS' development agenda. Nor will the new bank try to compete with the domestic development banks in the Brics.
The BRICS bank's relevance will depend on its effectiveness and specialisation. Rather than posture as a common denominator or create overlapping agendas with other development finance institutions and BRICS state policy banks, including Brazil Development Bank (BNDES), China Development Bank (CDB), and Export-Import Bank of India, the Bank will need flesh on its bones before we shift from cautious optimism.
While China, India, Russia etc are trading and investing in Africa , old colonial powers like now socialist France, UK and the big daddy of all , USA are destroying states and want to loot their gold and natural resources as in 19 and 20 century. I had circulated a week ago a note on
IMF Information Leaks: Central Banks Gold Manipulations
Valentin KATASONOV | 07.02.2013 |
By John Fraser Asia Times ;28 Feb2013
"There is no doubt that the BRICS Development Bank will be a welcome development," Sandile Zungu, the Secretary of South Africa's Black Business Council, told IPS.
"The need for the bank is fairly obvious if you look at the growing trade among the BRICS countries and the frustrations these countries have had with existing development financing institutions like the World Bank and the IMF," he said.
Zungu particularly pointed to existing bureaucracy, the criteria for lending, the conditions attached to loans and the slow pace in processing applications.
"Then there's the fact these countries have such massive infrastructure roll-out programmes, which gives all the more reason to create this bank - the need is there."
Infrastructure financing within BRICS will indeed be a key focus of the bank, along with alternative models of cooperation to finance such projects, according to Hannah Edinger, head of Research and Strategy at emerging-markets consultancy group Frontier Advisory.
South African Finance Minister Pravin Gordhan earlier this week told parliament that the the bank's establishment is "intended to mobilize domestic savings" to co-fund these infrastructure projects in developing regions.