The 2012 BRICS (Brazil, Russia, India, China and South Africa) Think-Tanks Forum recently met recently in China to pursue an earlier proposal to create a BRICS development bank. While there is no timetable to establish the bank, it seems to be moving forward.
The aim of the new bank is to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries to supplement the efforts of existing multilateral and regional financial institutions. Some of the persons participating in the meeting found fault with the existing global financial institutions, especially the World Bank, for not providing adequate capital for large infrastructure projects in BRICS and other developing countries. The BRICS also complain that they do not have a sufficient governing role in the World Bank and IMF, which are dominated by the United States and Europe.
Nevertheless, the delegates generally agreed the BRICS bank should supplement the World Bank and other multilateral or bilateral financial institutions and that its intention was not to subvert the Bretton Woods system. At the same time, the new bank could put pressure on the current system and compete with the World Bank.
For an article in China's Global Times on this subject, click here.