The BNDES, Brazil’s government-owned development bank, will open its first Africa office on Friday in South Africa’s commercial capital of Johannesburg. Only the third overseas office for the Banco Nacional de Desenvolvimento Econômico e Social after Montevideo and London, it signals the ever-growing ties between Latin America’s largest economy and the world’s fastest growing continent. Its goal is simple – to push Brazilian companies deeper into Africa. Continue reading »
By Sargon Nissan of The Bretton Woods Project
On the sidelines of this week’s G20 summit, the Brics nations are expected to reveal details of how their proposed $100bn alternative to the IMF will operate. Unveiled at the 5th Brics summit in Durban in March, the Contingent Reserve Arrangement (CRA) should in reality be seen as a clever tactic to extract more influence at the G20 rather than a functional addition to the multilateral system, let alone a genuine alternative to the IMF. Continue reading »
By Marcos Troyjo of Columbia University
The creation of the Brics Development Bank, announced during the Brics Summit in South Africa in March, is a key move towards giving some backbone to the Brics as a group. The five nations will again work on setting up the Bank as they hold a parallel meeting to the G-20 gathering in St Petersburg in September.
The BDB is not being designed to compete with traditional institutions such as the World Bank and other multilateral agencies. Quite the contrary, its motivation is to perform a complementary role to existing Washington-based institutions. It should be welcomed by the entire international community – and particularly by the Brics themselves. It will allow them to show that their constructive capacity is for real. Continue reading »
By John Thornhill
Much attention at the forthcoming Brics summit in Durban on March 26 will focus on the progress the five countries have made over the past year to set up a joint development bank.
But, according to Gill Marcus, governor of the South African Reserve Bank, there is still a long way to go to turn their ambition into reality. “This is a very high-level concept and it is still very early stages. What we are looking to do is to provide more resources for infrastructure development,” she told the FT on the margins of the Ambrosetti finance forum held over the weekend in Italy. Continue reading »
Brics summit: so last year
The plans of the Brics countries to establish a Brics bank are gathering pace in the advance of the fifth summit next month of the five countries – Brazil, Russia, India, China, and their poor cousin South Africa.
Even though key decisions have yet to be made – such as where it would be based and what exactly it would do – some elements are emerging from the discussions, notably the bank’s possible capital – $50bn. Continue reading »
Brics summit, 2011 edition
The debate will range from food and energy security to Iran, Syria and nuclear weapons.
But the main issue for many participants in the fourth annual Brics summit, to be hosted in New Delhi on Thursday, will be the potential establishment of a common development bank between the five countries. Continue reading »