Monday, March 19, 2012

BRICS Bank Could Change the Money Game

MOSCOW, Mar 19, 2012 (IPS) - India’s proposal to set up a bank of the BRICS nations (Brazil, Russia, India, China and South Africa) will top the agenda at the summit of the group in New Delhi Mar. 28.
India believes a joint bank would be in line with the growing economic power of the five-nation group. The bank could firm up the position of BRICS as a powerful player in global decision-making. 
"The BRICS bank does not need much capital for a start," Alexander Appokin, senior expert at the Moscow- based Centre for Macroeconomic Analysis and Forecasting tells IPS. "What is more important is that the BRICS development bank presents a unique opportunity for indirect investment of central bank foreign reserves inside the countries." 
A BRICS bank could for example issue convertible debt, which would arguably be top-rated and can be bought by central banks of all BRICS countries. BRICS countries would thus have a vessel for investment risk-sharing.
Read it at Inter Press Service
BRICS Bank Could Change the Money Game
Analysis by Kester Kenn Klomegah

1 comment:

David said...

Interesting. It seems that there are some contradictory objectives being discussed. On the one hand they say they want to use it to develop infrastructure in the Brics countries. Fine. But why don't these countries just invest in the infrastructure themselves? I can see maybe South Africa, which may not have the strongest resource base, but what's to stop the others? There were also hints that a good deal of neoliberal dogma is informing the discussion. Helping out the EU in exchange for more say in the IMF? Really? "Helping" develop third world countries and no doubt doing it better than IMF/World Bank is now. "Independence" from the associated governments. Very neoliberal! I suppose the natural opponent for western oriented elite, stateless, unelected financial manipulators is a competing cadre of same.