The emerging markets nations are grabbing more control of their destiny with the foundation of the New Development Bank.
It’s better known as the BRICS Bank, because of its top members, Brazil, Russia, India and China. It will also include South Africa as a member.
The NDB will be an alternative to the World Bank and International Monetary Fund, western institutions led by the US, which experts say are unable to fund all the necessary infrastructure investments in emerging economies.
The National People’s Congress Standing Committee, China’s top parliament body, had started reviewing the agreement to create the bank, said Vice Finance Minister Shi Yaobin according to state news agency Xinhua on Wednesday.
Russia and India ratified the agreements in April, and all five are expected to sign a document next month putting the bank into operation, according to The Economic Times.
China would inject $10 billion into the bank once the Chinese parliament ratifies the agreement, said Shi, according to Xinhua. It expects to contribute a total of $41 billion, giving it 39.5% of the votes. The bank will be headquartered in Shanghai and will first be led by an Indian, followed by a Brazilian, then a Russian.
China is also creating the Asian Infrastructure Investment Bank, a bank focused on development in Asia. Its 57 member nations include Britain and Germany.