Emerging countries seeking to establish a joint development bank to change the funding system and the global economy

[yota691]

 Emerging countries seeking to establish a joint development bank to change the funding system and the global economy

 

March 26, 2013 11:20 PM   Last Updated: 26 Mar 2013 11:20

 

Looking countries emerging economies "Brix" establish a joint development bank; to fund the construction of infrastructure at the summit to be held in South Africa on Tuesday, in the city of Durban.

If what has been the move will have implications and effects of great importance, and will prepare an embodiment of the changing financial system and the global economy. Experts believe that the objective conditions for this step has matured, and that coordination at the level of funding between the countries of the group has become an urgent necessity in global Aaltnavs conditions. The idea in this regard had been raised at the Bric summit in New Delhi in 2012, as well as hot topics has been the subject of research economists. The group includes "Brics" Brazil, Russia, India, China and South Africa; For example Brazil can get funding from the World Bank to improve its infrastructure poor, hindering its economic development, and quenched thirst for funding; to host the World Championship football in 2014, and the 2016 Olympic Games.

The meeting will be held against the backdrop of a relative improvement in sentiment about the global economy; which is due mainly to the United States, despite the fact that the economies of the BRICs individual facing greater challenges than ever. And as each faces a different challenge but collected by the fact that these challenges important and influential in economic growth in the future. Some believe that the principle of the idea of ​​the Brix Group received recognition exaggerated. According to Jim O'Neill, Chairman of Goldman Sachs Asset Management that the economies of the BRICs has slowed compared to the rapid growth witnessed between 2001 and 2010. A period during which achieved a growth rate of 8.1%. It was growth during the first two years of the current contract is in accordance with expectations. The growth of the group's member states between 2001 and 2010, much higher than expected; which means that it is obvious that the slow rate of growth during the current decade. According to the flag

It is clear that the Chinese economy is particularly slow in growth; which not only caused by the fact that the Chinese authorities will seek to achieve slower growth rates and more balanced. And can never over-estimate the importance of China in various aspects, including its importance within the context of the BRICs group. The magnitude of the current economy, which amounted to U.S. $ 8.2 trillion at the end of the year 2012 equivalent to the economy of the rest of the group, including the modest economy $ 400 billion in South Africa.

This means that - along with many connotations other - that China's significant impact on the Group Brix, which is probably true when talking about the establishment of the bank to group countries and discuss the form and content, and look Russia less interested in the bank, but it looks as if they were wondering about the extent the need for the bank.

The importance of national development banks usually it financed long-term economic projects which are in the interest of the country, and is characterized by being beyond the limits of the potential of the private sector.Given the lingering effects of the crisis after the year 2008, there have been many debates about institutions of this kind within the so-called countries of the developed world.

Edited March 26, 2013 by yota691

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