BRICS takes on the developed economies

[Wildfire]

A Seminal Shift In Global Power?

BRICS takes on the developed economies with it's own Development Bank

Few would have expected the Bric acronym – initially put forward in 2001 as an investment concept – to have inspired real-world alliances.

But Brazil, Russia, India and China, recently joined by South Africa, are increasingly adding diplomatic ambitions to their economic assertiveness.

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.

The establishment of the BRICS Development Bank will be an important milestone for the BRICS grouping as it would add credibility, substance
and ownership to the BRICS concept as the first institution coming out of this club.

The new bank would also “cement” the BRICS spirit of co-operation by giving a tangible institutional foundation.

Although the scope of the bank’s activities will initially be limited, this could be expanded rapidly as situation dictates to rival that of the established
financial institutions.

Could this then be the beginning of the end of an era of Western financial dominance in the World Bank, IMF and … maybe, even the emergence of
a new reserved currency to rival that of the US dollar?

 

[steffychun]

Singapore will soon serve as a delivery centre for India and China thanks to the White Paper

 

[congo9]

China and India join for and try to form their own bank. Thief and pirate becoming bankers ?

 

[kongsimi]

wait long long..income between rich and poor still very huge!!

average living standards is still low.

 

[GOD IS MY DOG]

A Seminal Shift In Global Power?

BRICS takes on the developed economies with it's own Development Bank

Few would have expected the Bric acronym – initially put forward in 2001 as an investment concept – to have inspired real-world alliances.

But Brazil, Russia, India and China, recently joined by South Africa, are increasingly adding diplomatic ambitions to their economic assertiveness.

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.

The establishment of the BRICS Development Bank will be an important milestone for the BRICS grouping as it would add credibility, substance
and ownership to the BRICS concept as the first institution coming out of this club.

The new bank would also “cement” the BRICS spirit of co-operation by giving a tangible institutional foundation.

Although the scope of the bank’s activities will initially be limited, this could be expanded rapidly as situation dictates to rival that of the established
financial institutions.

Could this then be the beginning of the end of an era of Western financial dominance in the World Bank, IMF and … maybe, even the emergence of
a new reserved currency to rival that of the US dollar?

what happened in 2007-8 financial crisis ?


Russia was in trouble becoz oil prices plunged from USD147 to USD36............Russia is too dependent on oil exports.......currency was in trouble

South Africa relies heavily on gold production................when markets crash, gold prices will plunge..............

Brazil is more balanced but any emerging economy will suffer big currency plunge in crisis................

same thing goes for China and India when their exports plunge..................