Geo-Graphics » Hurling BRICS at the World Bank and the $
Brazil, Russia, India, China, and South Africa (the “BRICS”) made a
splash last week with the official launch of their new development
bank. The backers made no secret of their intention to challenge the
way things are done in the established international financial and
monetary architecture.
The irony is that India and China are the biggest beneficiaries of
the current development bank architecture. They are the World Bank’s
largest borrowers. And Brazil is number 9. As shown in the graphic
above, these three nations have $66bn in World Bank loans outstanding,
32% more than the new BRICS bank’s entire initial subscribed capital of
$50bn. So it would appear that for the foreseeable future the World
Bank will remain a considerably more important source of development
financing for the BRICS than their own development bank.
No comments:
Post a Comment