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
body.
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.