BRICS going for a New Development Bank. A possible rival for World Bank and IMF?

The failure of Europe could be the success of Asia! The recent BRICS summit held at Durban showed signs of Asia being hopeful about its economic growth, which is very significant in the global economic slowdown. With mounting criticism from the West for its snail pace, BRICS managed to set up guidelines for the growth of BRICS region.

Concept of the New Development Bank got a global attention. Spokesperson for Development Bank of South Africa hold the wish that South Africa will get needed funding for its infrastructure development. South Africa will surely need a large amount of funding for their stability, since their ally China is accused of exploiting South Africa’ s mineral resources.

The BRICS Interbank collaboration concluded on two agreements. The BRICS Multilateral Infrastructure Co-Financing affirmation for Africa and The BRICS Multilateral collaboration and Co-Financing affirmation for Sustainable Development. These two affirmations will give more investment for infrastructure projects in the African countries and will help to execute   new plans for sustainable development.

South Africa, The Chairperson of the BRICS, will be responsible for the execution of all the concepts all through its Chairpersonship. For the first time, eThekwini Declaration encompassed the provisions for human privileges and gender. New Chairperson for the African Union Nkosazana Clarice Dlamini-Zuma was given an outstanding greeting as an affirmation of the woman power

Other vital areas identified by BIRCS leaders are infrastructure development, unemployment, programs on skill development, food and nutrition security, scarcity eradication and sustainable development in Africa. The BRICS leaders even put forward

an idea of a Free Trade Zone for the constituent nations

China with GDP of $ 8.25 trillion in 2012 considered as the leading force in the BRICS . According to the IMF reports, Chinese economy will grow to 8.2% in 2013. It’s population will come around 1.34 billion. India’s place in world economy is 10 with the GDP of  1.946 trillion. Russia‘s GDP was $ 1.953 trillion in 2012 will grow more with the gas export in 2013. They will be the world’s 8 largest gas exporter. Brazil‘s GDP for 2012 was $ 8.25 trillion. South Africa is the smallest economy in BRICS with GDP of $ 390 billion.

According to the report each BRICS nation is   contributing $10 billion as the primary investment for the New Development Bank. BRICS territory wants to gain self- sufficiency and they keep a vision to reduce their dependence on euros. Brazil and China even entered a treaty to do trade in their localized currencies.

There are so many hurdles for BRICS. - BRICS can never ignore the sociopolitical, cultural and economical differences among the BRICS countries. Will BRICS be able to strengthen its ties or will they lose their initial thrust and significance as UN?