The BRICS Bank Prabhat Patnaik

On July 15, the five BRICS countries, Brazil , Russia, India, China, and South Africa formally created a New Development Bank at Forteleza, Brazil, which would be headquartered in Shanghai and would have an Indian as its first President. It would have a capital base of $50 billion to start with, contributed by the five governments, and would provide development funding to all governments for infrastructure projects. The BRICS proposal also envisages a Contingency Reserve Arrangement, of $100 billion, which will give loans to governments for tiding over balance of payments problems; but this arrangement is yet to get started.…