adminFarayi Matondo
THE 7th BRICS summit held at Ufa, Russia recently reached a milestone as five leaders launched the historic New Development Bank (NDB), which undoubtedly is set to ruffle traditional players across the financial sector globally.
The economic block BRICS nations – Brazil, Russia, India, China, South Africa is pioneering a new dispensation in economic development of previously marginalised developing poor countries.
Presidents Vladimir Putin Russia, Jacob Zuma South Africa, Xi Jinping China, Dilma Rousseff Brazil and India’s Prime Minister Narendra Modi mission is applauded.
The vision of true economic independence is certainly to be realised with this brand new establishment.
The world is changing of geopolitical shift from West to East, economic hub dovetailing rebirth of real emancipation of the society.
Are Bretton Woods institutions – World Bank (WB) and International Monetary Fund (IMF) set to lose out as traditional financers’ since its formation in 1944?
It had not been easy for the past 70 years with the West dominance and control evidently in policy and finance to most developing countries seeking these institutions assistance.
Surely, the Zimbabwean situation in early 2000 comes into my mind with the fallout with Bretton Woods institutions to support our country’s balance of. The reparation of Western funded economic principles grossly caused harm to the economy than expected good.
The IMF/WB interference on Zimbabwe’s political decisions upon historical land heritage repossession from few dominant farmers in early 2000 contributed also to the retardation of a growing economy then.
Eventually this led to crazy hyperinflation era with adverse challenges socially, economically and political problems the country previously experienced.
Today, the world is watching Greece financial crisis exploding with no honest concrete help from IMFWB and the European Union.
Coming on board NDB with a facility pool of R100 billion, developing poor countries’ economies should get relief from liquidity challenges and balance of payments support.
It is saddening to see that developing economies such as Zimbabwe in deflation crisis and Greece financial turmoil situation affecting its people.
When NDB is fully operational such countries should get human-centred finance for economic growth that can increase trade, exports and skills development of its people.
NDB first President Kundapur Vaman Kamath has a major role to play setting up a vibrant organisation of such magnitude, pooling resources, building a solid structure, team and a patriotic institution should be a cause for joy is no easy task.
South African President Jacob Zuma participation in the BRICS does not represent South Africans but also the entire Africa continent. Competition is good, but this is not BRICS competition with IMF/WB, it is a dream realised to benefit nations.
The policy terms and conditions of Western institutions has been an obstacle and of manipulative nature benefitting developed countries. Everyone wants financial security, which new NDB is to provide to various countries across the globe.
New Development Bank mission shall not dwell on foreign policy of partners. The terms of financing are ideally favourable to developing countries.
Brics is certain to be a major player in global politics and economic usefulness amidst world recessions. The African Union Agenda 2063, a guiding vision for the continent has a lot to benefit from NDB as a critical resource centre and contributing to the total change from poor performance of developing economics to greater heights of prosperity.
Online Reporter