nternational     onomi      r anisations     ndia    16.11
             agriculture or even a work programme for     July 2014) from Brazil, Russia, India, China, and
             the next two years. However, the existing    South Africa (the BRICS countries) is another
             mandates and decisions ensure that work      such attempt—creation of a BRICS Bank i.e.,
             will go forward and members will continue    New Development Bank (NDB). Major highlights
             to work on issues such as the permanent      about the bank are as given below:
             solution on public stockholding for food          (i) The bank will have initial subscribed
             security purposes, agricultural Special                capital of $50 billion—eqaully shared by
             Safeguard Mechanism and agricultural                   the five nations.
             domestic support.
                                                              (ii) The capital base is to be used for
             Some of the other decisions that were                  funding infrastructure and ‘sustainable
             taken included a Work Programme on                     development’ projects in the BRICS
             disciplines on Fisheries Subsidies with a              countries initially.
             view to arriving at a decision by MC12.
                                                             (iii) Other low and middle-income countries
             It was also decided to continue with the               will be able get funding as time progresses.
             non-negotiating mandate of the existing         (iv) A Contingent Reserve Arrangement (CRA)
             Work Programme on e-commerce.                          of $100 billion is to be also created to
             On new issues like investment facilitation,            provide additional liquidity protection
             MSMEs, gender and trade, which lacked                  to member-nations during balance of
             a mandate or consensus, Ministerial                    payments problems.
             Decisions were not taken forward.                (v) The CRA is being funded 41 per cent
             India stood firm during the Conference                 by China, 18 per cent each from Brazil,
             on its stand on the fundamental principles             India, and Russia, and 5 per cent from
             of the WTO, including multilateralism,                 South Africa.
             rule-based consensual decision-making,          (vi) CRA, according to the Declaration,
             an independent and credible dispute                    is ‘a framework for the provision of
             resolution and appellate process, the                  currency swaps in response to actual or
             centrality of development, which                       potential short-term balance of payments
             underlies the Doha Development Agenda                  pressures.’
             (DDA), and special and differential
                                                               More than the establishment of the NDB, the
             treatment for all developing countries.
                                                          Fortaleza Declaration is remarkable for adoption
             Meanwhile, India continues to negotiate
                                                          of one-nation one-vote prescription for the
             with the countries with similar views at
                                                          proposed bank. The Bretton Woods institutions
             mini-Ministerial Conferences to reach a
                                                          (the World Bank and the International Monetary
             consensus on the issues which derailed       Fund) have structures that are not equitable.
             the Buenos Aires Conference of the trade
                                                               As per the experts, two factors have triggered
                                                          the birth of the NDB:
        BrICS Bank                                            (a) BRICS have emerged as a big economic
                                                                    power, and solidified their ties in terms of
     Together with the process of globalisation world               commerce with the emerging market
     regional forces have also been asserting their                 economies and developing countries
     power through different short of alignments—                   (EMDCs) and they are a force to reckon
     the Fortaleza Declaration of heads of state (late              with in the global economy.