Shanghai looks set to become the headquarters of a development bank being launched by the BRICS emerging market nations, despite fears by some members of the group that China could hijack the bank to serve its interests.
Brazil, China, India, Russia and South Africa are due to sign off on the new institution on Tuesday, along with an emergency reserves fund, after two years of negotiations, a major step for the diverse group known more for its anti-Western rhetoric than coordinated action.
Russian presidential adviser Yuri Ushakov told Kremlin reporters late last week that bank would be based in Shanghai, mainland China's financial capital, citing discussion papers prepared by the member countries. Earlier, Russia's finance minister said India was vying with China to host the new infrastructure lender. "The bank's headquarters will be located in Shanghai. This is fixed in the documents," Ushakov said.
In a further sign that an agreement had been reached on the headquarters, an Indian government official on Monday played down the debate and said India's top priority was to make sure members of the institutions all had equal voting rights, unlike Western-run multilaterals they seek to challenge, such as the World Bank.
"Equitable shareholding is the principal goal for India," the official said. Second on India's list of concerns was giving the bank a name that would allow non-BRICS nations to join in future, the official said.
