By FXEmpire.com
BRICS Bank Gets Support from World Bank Director
Outgoing World Bank president Robert Zoellick has backed the creation of a BRICS bank, warning that the need for such the new institution highlights the dangers of existing multilateral organizations failing to provide support to large developing countries, according to the Financial Times.
Who are the BRICS nations? They are a group of leading emerging economies, arising out of the inclusion of South Africa into the BRIC group in 2010. As of 2012, its five members are Brazil, Russia, India, China and South Africa. With the possible exception of Russia, the BRICS members are all developing or newly industrialized countries, but they are distinguished by their large economies and significant influence on regional and global affairs.
The FTreported that Mr. Zoellick said that pushing middle-income countries like China and Brazil out of the World Bank system and forcing them to look to other places for resources would be a “mistake of historic proportions”.
World Bank President Robert Zoellick will step down in June it has been revealed and the U.S. government has indicated that his replacement could go to a non-
American. Mr. Zoellick insists that the decision to leave on June 30 at the end of his five-year term was his own and was not due to pressure
Mr. Zoellick said that the World Bank would support a Brics bank, formally proposed last week at a summit in New Delhi, as it had done with the Islamic Development Bank and the OPEC Fund to build financing and analytical capabilities.
India has proposed setting up a multilateral bank that would be funded by developing nations with the aim of funding projects in those countries and possibly other developing nations, Bloomberg reported. A Brazilian official has confirmed the proposal
The proposal has been circulating among BRIC nations and was discussed at length during the G20 talks in Mexico City earlier this year. Officials are expected to continue these talks at a March BRICS summit in New Delhi.
BRIC nations have been pushing for a bigger role in the IMF. Last year they rallied to end the practice of picking World Bank presidents and IMF chiefs from the U.S. and Europe. Bank of Mexico governor had pushed for the role of IMF chief last year, but lost to Christine Lagarde.
Emerging markets have proven themselves to be reliable partners and a leader from the region must be considered for the position of the IMF’s next managing director, Agust?n Carstens, governor of the Bank of Mexico,
Originally posted here
