The new BRICS development bank and reserve fund launched this week are intended to provide an alternative to existing Western-led institutions.
At a summit of BRICS nations (
Zhenbou Hou, what can this new bank achieve that is not already being done by the
Firstly, what we have seen over the last couple of decades is that there is a serious financing gap for developing countries. What the IMF and the
Secondly, more finance being available for developing countries is usually a welcome idea. Through studies, we at ODI have found that pretty serious financing gaps exist in developing countries so providing more finance is usually a very good idea.
What is expected to be the new bank's focus in sub-Saharan Africa? Which countries will it be concentrating on?
I don't think the bank has a preference at the moment but I think, sector-wise, there will be very heavy emphasis on infrastructure development and large public sector works, that is railways, highways, airports etc.
How difficult is it going to be for the new bank to gain the confidence of investors?
For a new bank, it will be difficult at the beginning anyway. We also have to bear in mind that these five countries would have different credit ratings among themselves. And how are they going to pull the sovereign risks together to afford this development bank? That is something they need to be careful with. But I think eventually, with enough financial resources as a backing - they announced at the BRICS summit a
What role will
Does this mean that other African countries will be obliged to maintain cordial relations with
I don't think
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