Create a new Development Bank for a new world

[yota691]

Create a new Development Bank for a new world

 

May 12, 2013 06:50 PM   Last Updated: 12 May 2013 06:50 AM

 

We do not need to exaggerate to emphasize the importance of this decision. It outset reflects the huge successes in economic development over the past four decades (the total GDP of BRICS now greater than the total GDP of developed countries when it was created the Bretton Woods institutions) and carries this with it from rebalancing the global economy . The fact that the decision shows the ability of the BRICS group on collective action, for the benefit of their countries and the interest of the whole world. The emerging markets and developing countries take it upon themselves now draw the future, at a time wandering the rich countries in its own problems brought on itself. The need for a new development bank and clear. The requirements of infrastructure alone in the economies of emerging markets and low-income countries is enormous, it is still 1.4 billion people are deprived of electrical energy that can be relied upon, nor can 900 million people access to clean water, as well as 2.6 billion people do not have the facilities adequate sanitation. On the other hand, an estimated two billion people will move to cities over the next quarter century.And policy makers must ensure environmentally sustainable investments. To meet these and other challenges faced by the developing world, it must increase infrastructure spending of about $ 800 billion to at least two trillion dollars annually in the coming decades. Otherwise it will be impossible to achieve the goal of reducing poverty and achieving inclusive growth in the long term.  While you may be able to privately meet some of these needs, the abilities are not limitless, especially given the nature of the risks associated with infrastructure projects, and the initial costs of the massive, allergies Periodic high that characterize the global financial markets. In fact, the funding gap wider than you can the existing international financial institutions bridged. The malaise experienced by the developed countries means a great deal of occultation refinancing. It is likely not exceed the annual funding for infrastructure projects from multilateral development banks and overseas development aid 40 to $ 60 billion, or about 2% to 3% of projected needs. Creating development bank in emerging markets and developing countries would help in addressing This gap is strong and act as a catalyst for change, both in developing countries, through cooperation and good example, or in the existing institutions.The world today is significantly different from the world at the time of the establishment of the World Bank and several regional development banks. The proposal set BRICS create Development Bank of New critical opportunity to highlight these changes in the work of financial institutions, modern, strong management, and the mandate broad-based. , for example, made ​​changes in the financial markets (including the huge amounts of money in sovereign wealth funds and pension funds General) many opportunities to form partnerships in the field of development, and the new development bank could help here in the stimulation and coordination. It should also help to publish to a wide range of modern tools in enabling him to meet a variety of needs for projects, and to ensure risk management efficiently at the same time. should the new bank should seek to produce the maximum multiplier effects through participation and reduce risk through teamwork and "mobilize" other sources of funding, by providing an example of a strong adoption of methods of creative and cost-effective, and through the influence of political and institutional away from the projects it finances. Though the old institutions tried to adapt, the management remains a far cry from the harmony with economic and political reality today. And you need the administrative structure of the new bank to further study, but it is greater consistency with contemporary best practices. The most important thing is that the Bank of the new development will give those in developing countries and emerging markets, a stronger voice their views and interests. As is the case with the arrangements antique outdated in dealing with management, the concepts of development dictated mandates of multilateral institutions, the menu varies greatly More modern development thinking. For example, there was no awareness of the challenges posed by climate change, and that all countries (including the countries of the developing world) must work to reduce the carbon emissions that cause global warming and adapt to the changes that will be harmful especially poor countries. Likewise, there was no clear understanding of all that entails seeking to follow the paths more sustainable and comprehensive approach in dealing with the economic growth of creativity and opportunities. no doubt that the World Bank and regional development banks now aware of such necessities, nor should the Bank of the new development that absolve the developed countries of their responsibilities. But in light of the lack of aid from developed and developing countries, the new bank is able to provide basic assistance to developing countries and emerging markets to adopt smarter and more investment in infrastructure sustainability for growth and poverty reduction. Due to the need to move quickly and due to the slowdown in response developed countries, this new institution become welcome too. , and could the new bank that offers significant contributions to ensure the health of the global economy by facilitating the transition to the electrodes new growth and demand, and to help restore balance to the Savings and international investments, and directing excess liquidity into productive uses. The new bank will be just the engine for sustainable growth in developing countries and emerging markets, but also a tool to promote reform in the multilateral financial institutions, a list of changes that will benefit all of them, in the developed world and the developing world alike. According to Gulf

Edited May 12, 2013 by yota691

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