Talk BRICS:Expert optimistic on BRICS future growing

CNC
Added On September 6, 2017

As the 9th BRICS Summit concludes in southeastern Chinese city of Xiamen, one institution that had a lot of attention was the New Development Bank.

 
The New Development Bank, or NDB, is a multilateral financial institution founded by BRICS, a bloc made up of Brazil, Russia, India, China and South Africa, in July 2014.
 
The bank formally opened in Shanghai in 2015, and approved its first series of loans worth 811 million U.S. dollars in April 2016.
 
Experts said the bank provides an alternative to traditional funding on the world stage.
 
SOUNDBITE: WAHEGURU PAL SINGH SIDHU, Brookings Institution
"In the geopolitical forms, you know there has been a move to reform the international financial institutions, particularly the World Bank and the International Monetary Fund. But unfortunately there's not been too much movement there, and if there has been any, it has been very slow. And this has frustrated countries like China and India, which are important players in the international financial systems that they are not being able to get the right amount of weightage that they deserve, this is led to the initiative to set up the New Development Bank, which I think is a good approach because it also shows that if we are not going to see reform of the existing structure, it may lead to the creation of new, alternative structures." 
 
As well as providing a new alternative, the expert also believed the bank could ultimately help some of the world's poorest.
 
SOUNDBITE: WAHEGURU PAL SINGH SIDHU, Brookings Institution
“It's quite clear that there is a great requirement for new sources of funding. For example, there is one estimate that if the Sustainable Development Goals are to succeed, they would require roughly 1 trillion dollars a year between now and 2030, every year. That's a lot of money, and where are those resources and fund going to be generated from? That's where perhaps the New Development Bank can play a role."
 
In September, the first project financed by the NDB started operation in Shanghai. 
 
Thanks to a 76 million U.S. dollar loan, a new 100 megawatt solar power system will be built on the rooftops of factories in Shanghai's Lingang Industrial Area.
 
Sidhu says he is hopeful of the banks success. Pointing out that it can pull on the unity between the BRICS, and that the bank can learn from previous organizations. 
 
SOUNDBITE: WAHEGURU PAL SINGH SIDHU, Brookings Institution
"Partly because of the structure of the bank, they've tried to follow in some practices the good ways of the Wold Bank, and that's a useful model to have to develop a bank like the New Development Bank. It's truly multilateral in that sense, and it's also going to open up new avenues for funding, for not just the BRICS countries, but other countries as well. That's why I'm very optimistic about the New Development Bank."