The VI BRICS Summit will be held in Fortaleza, Brazil from 14 July 2014 to 16 July 2014. Among topics such as development, sustainability and reform of multilateral institutions, the BRICS countries will discuss the establishment of the New Development Bank. Akshay Mathur, head of research and geoeconomics fellow at Gateway House, comments on the mandate of the BRICS Bank and its location.
Statement:
“At the VI BRICS Summit in Fortaleza, Brazil, the BRICS leaders are expected to formally launch the New Development Bank. The Bank has been under construction since it was first announced at the IV BRICS Summit held in New Delhi in 2012.
There are three important issues regarding the BRICS Bank that India should lobby for – equal rights for management, socio-economic goals as the mandate, and Mumbai as the location.
India should firmly negotiate for the BRICS Bank to be established with an equal share of votes, contribution and management. This will ensure that the institution is structurally equitable and fair from inception, mitigating the risk of it becoming influenced by the geopolitics of any one country.
The mandate of the Bank should be to focus on socio-economic objectives such as industry-linked high skill programs and affordable housing, instead of infrastructure only as is being currently discussed. The location of the bank should be Mumbai, given India’s strong commitment to multilateral institutions and Mumbai’s capability to serve as the financial centre for the five countries.”
For more information or interview requests, please contact Reetika Joshi at joshi.reetika@gatewayhouse.in.