Letters: Building on BRICS

This refers to the report "BRICS leaders create development bank" (July 16). Let us first remove the misconception that this development bank is an alternative that will take over the role of the Bretton Woods twins, the International Monetary Fund (IMF) and the World Bank in the geographical area covered by the BRICS (Brazil, Russia, India, China and South Africa) nations. At least initially, the declared objective of the new bank is to support the member nations of BRICS and other developing countries in meeting long-term investment needs in infrastructure and providing emergency assistance to developing countries in removing poverty. Viewed from this perspective, the new institution's initiatives will only supplement IMF and World Bank, and there is enough unattended space for the new bank. There are limitations in the "already impaired" vision of the rich, and the poor cannot wait on the sidelines for their basic needs to be met.

The twin objectives - supporting infrastructure development and creating a contingency reserve fund to assist developing countries - accepted by the BRICS leadership carry the theme that can be developed into a transparent vision, which could be supportive of financing and pursuing the needs of the poor.

M G Warrier Mumbai

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