presentation on BRICS

1. BRICS BANK

2.  What BRICS stand for……………..
 Established on 16th June 2009.
 BRICS stands for Brazil,Russia,India,China and South Africa.
 BRICS is international political organization of leading emerging economies.
Objectives:
 To achieve regional developments.
 To remove trade barriers.
 Economic developments.
 Optimum use of resources.
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9.  Key Statistics:
 25% of the world’s land coverage.
 40% of the world’s population.
 Combined GDP of $18.486 trillion i.e. more than 25% of worlds GDP.
 Embrace global capitalism.
 China and India-Suppliers of manufactured goods and services.
 Brazil,Russia,South Africa- Suppliers of Raw Materials.
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10.  NEW DEVELOPMENT BANK
 Formed on July 2014 and came into force in July 2015. Earlier known as “BRICS Development
Bank”.
 Headquartered in Shanghai.
 Comprises of 2.8billion people.
 Unlike the world bank which assigns vote based on capital share, In the NDB each participant
country will be assigned one vote.
 In NDB no countries will have “veto power.”
 1st president will be from India.
 Chairman of Board of Directors will be from Brazil and Chairman of Board of Governors will be
from Russia.
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11.  NEED OF NDB….
 Rising strength of BRICS countries.
 To challenge the US $ as the global currency.
 South-South economic cooperation has expanded in recent years.
 Long standing dissatisfaction with Brettonwood institutions has also posed BRICS towards
developing country alternative to global developmental finance.
 Domination of west countries over the WORLD BANK & IMF.
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12.  FINANCIAL STRUCTURE
 US $ 50 billion ( US $ 10 billion from each country) as initial capital, this capital base to be used
for financial infrastructure & sustainable development projects in brics countries.
 US $ 100 billion Contingency Reserve Arrangement(CRA) for liquidity protection of brics
countries during BOP problem. ( 41% china, 18% india,Russia,brazil and 5% south Africa).
 At the time of expansion the 51% share of the bank will be held by BRICS countries only.
 Developing or less developing countries can also apply for financial assistance.
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13.  IMPLICATION OF NDB
 It may challenge WORL BANK & IMF overs matters such as
i)Funding for basic services.
ii)Emergency Assistance.
iii)Policy Landing.
iv)Funding to Conflict Affected States.
 World Bank’s own estimates points to $1trillion infrastructure investment gap in developing
countries which can filled by these institutions.
 It may dwarf World Bank’s Loans.
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14.  BIBLOGRAPHY
 www.Wikipedia.com
 http://www.huffingtonpost.com/parag-khanna/new-
bricsbank_b_5600027.html?ir=India&adsSiteOverride=in
 http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-
brics-is-all-about/
 http://www.hindustantimes.com/business/kv-kamath-non-executive-chairman-of-icici-is-now-
brics-bank-head/story-4LtSgiRQzGAMkfgvlUqtSO.html
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