Yesterday in Brazil the leaders of BRICS countries launched the New Development Bank (NDB). London-based investor Andrey Yakunin of VIY Management welcomed this new institution, as an acknowledgement of the rebalancing of the global economy in recent years. In the current climate, the combined foreign exchange reserve of the BRICS means they have the economic weight to stand apart from the established western markets, which are now accepted as global debtors.
Yakunin said today: "The creation of the NDB will challenge the global financial structure, which has hardly changed since the World Bank was founded 70 years ago. The BRICS are more than just an acronym; they are paving the way towards securing emerging markets a place on the global business agenda."
Funded by the BRICS, the NDB will finance sustainable development within member nations, emerging economies and developing countries. Yakunin commented: "Not only have the BRICS become the natural leaders for the world's secondary economies, but this new banking institution will also provide support to guide businessmen through the challenges and differences of investing in emerging markets. As an investor in Russia and the CIS, I have long advocated countering the mainstream flow of capital. The NDB is a crucial step towards wider recognition for the positives of dealing with these underappreciated emerging markets".
According to figures provided ahead of the 6th annual BRICS summit, the five BRICS countries constitute a staggering 41.6% of the world's population, 19.8% of world GDP and 17.7% of global exports. The NDB was proposed at last year's summit in Durban, South Africa, in order to offer financial support to those countries struggling to make the infrastructure improvements needed to sustain their rapidly growing economies.
