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Brazil,Russian Federation : NEW Development Bank launched by BRICKS

August 14, 2014

"BRICS," Brazil, Russia, India, China and South Africa in July declared the creation of a new, $100 billion development bank (NDB). The project is intended at lending money to developing nations for investments, much like how the American and European-backed International Monetary Fund (IMF) and World Bank operate.

Liu Haifang, a professor at Peking University'sCenter for African Studies said that the bank will offer developing countries with more options for financing.

Liu Haifang said, Finally they got some alternative sources to get funding for infrastructure and they do not come with these conditionalities. So it for me is very symbolic in terms of political meaning, it means the whole world order is not unipolar. It is not a west centered world. It is a multipolar world. African countries trying to get funding do not have to only follow the rules of the developed world .

The "rules of the developed world" Liu referred to are the conditions that the IMF sets forth in exchange for access to loans. Instead of putting up collateral, governments must follow economic policies prescribed by the IMF.

BRICS nations have 40 % of the world's population and 20 percent of global economic output. However, they have been blocked from gaining greater voting rights at the IMF, largely because of opposition in the U.S. Congress.

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Source: TendersInfo (India)

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