NDB Bank: A step towards the concept of Planetary Rent!
The launch of the BRICS Development Bank suggests that BRICS countries have no intention of disappearing into economic and policy oblivion.
The establishment of a $100 billion dollar liquidity reserve and a $50 billion New Development Bank (NBD) in Shanghai marks the start of a new financial system. As each country acts to maximize its own utility, the emerging economies of the BRICS nations will create a paralleling international financial system ultimately challenging the hegemony of the current western-dominated system.
Recent dollar-less BRICS energy deals, currency swaps and foreign direct investment indicate that trend is taking place.
The bank is backed by Brazil, Russia, India, China and South Africa - collectively known as Brics countries.
The NDB will lend money to developing countries to help finance infrastructure projects.
The bank is seen as an alternative to the World Bank and the International Monetary Fund, although the group says it is not a rival.
"Our objective is not to challenge the existing system as it is but to improve and complement the system in our own way", NDB President Kundapur Vaman Kamath said.
The Brics nations have criticised the World Bank and the IMF for not giving developing nations enough voting rights.
The bank is expected to issue its first loans early next year.
China is biggest contributor in NDB.
The opening comes two weeks after the last to last Brics summit in the Russian city Ufa, where the final details were discussed.
At the time, Russian Foreign Minister Sergei Lavrov said that the five countries "illustrate a new polycentric system of international relations".