1/ Do you think that a BRICS’ development bank is a good idea for emerging economies? Give your opinion. From my point of view the BRICS’ development bank is a good idea for emerging economies for several reasons: • The solutions and the credit will be adapted to the BRICS’ needs so some projects and structures that need specific solutions will be treated better by a BRICS’ bank than by the IMF. • There is no influence from developped countries on this bank so the priorities for the BRICS’ bank are the emerging economies and not the developped world. • We can not now think that western’s countries are better than the BRICS.
They showed us than they are able to create a group similar to the G20 based on common projects and ambitious. So now, they are better suited to manage their economy differently than EU and USA. • It will offer an opportunity to some others emerging countries to make a choice between IMF rules and BRICS rules. • Finally creating a BRICS’ development bank is a way to show more independence from existing bodies. They need the help of developed economies less and less and they let them deal with their econmic problems on their own (for example the Greek crisis ).
But they have to show themselves as a unit and agree upon the terms and conditions if they are to pull the creation of such an intitution off. The IMF is afraid to see another world bank appeared. The BRICS have already shown that they are able to create a common market that weighs around 250 billions dollars. Therefore, we can imagine a very serious bank who will influence the market globally and eventually become bigger than the IMF potentially pushing it to disappear or to collaborate with the BRICS Bank.
Finally I think it’s good to see the unipolar world as we know it being changed in order to see a multipolar world rise. 2/ what are the challenges that the BRICS encounter today preventing them to implement their project of a bank. Today, the BRICS encounter some problems such as: They need to put a minimum capital in the Bank and the amount that the countries from the BRICS have to put into the project has not been decided yet. China suggested that the amount be atound 10 billons dollars each but Russia is against that suggestion.
The BRICS haven’t figured out yet each of its members voting rights within the organization and how they will proceed to make decisions. The BRICS are also looking for a site in which the head quarters of the bank would be built. Legislation has to be written on paper and signed by its members in order to determine the workings of the organisation and its limits. Finally, they would have to decide who will benefit from the credits first. But all of these problems will be solved in 2014 during the BRICS meeting in Brazil.