The New Development Bank ( >Editorial, July 18 ) is indeed a great achievement for BRICS, which will mark a golden chapter in BRICS’s history. So far, the World Bank and the IMF have dominated global development. The NDB’s entry will help reshape global economies.
Jyoti Vats,
New Delhi
This bank will be started as a contingency reserve arrangement with an amount of $100 billion, wherein China will contribute about 40 per cent, while South Africa will contribute only 5 per cent of this amount. It is also noteworthy that BRICS members managed to iron out their differences to agree on an equal share each in the bank so that no member dominates the institution. This will help enhance mutual trust among countries in terms of trade and border strategies.
A.S. Malhotra,
New Delhi
There is the lurking apprehension that China may assume a dominant role and turn it into an acceptable conduit for its exports under the developmental assistance projects. Therefore, it is necessary to have adequate safeguards in the basic constitution of the Bank so as to ensure equal weight for its members in the appraisal of projects and in terms of assistance. In particular, it is hoped that countries like India would get their due share in making available consultant expertise, which is a field dominated by western experts. A great challenge awaits the Indian president of the bank in framing its basic operational guidelines.
Mohan Sundara Rajan,
Bangalore
