Serious questions need to be answered over the new $50 billion BRICS (Brazil, Russia, India, China and South Africa) development bank expected to be announced at the July 15-16 Brazil summit, says Zhenbo Hou from the Overseas Development Institute, the UK’s leading think-tank on development issues.
“It is great news that the BRICS development bank will fund infrastructure projects for developing countries and close the current financial gap. But the danger is that BRICS countries will fail to agree on location, leadership, capital ratios and shareholder structure of the new development bank, which are key to seriously challenge other multilateral financial institutions,” said Zhenbo Hou, researcher at the Overseas Development Institute.
The BRICS’s "New Development Bank" (NDB) intends to compete with the World Bank and its private lending arm, the International Finance Corporation, by making it easier and quicker for developing countries to gain access to large-scale financing for infrastructure projects.
Zhenbo Hou is available for interviews. He is a Chinese expert on BRICS and co-author of the recent publication “Will the BRICS provide the global public goods the world needs".
To arrange an interview, please contact Alfonso Daniels at ODI’s media team. Phone +44 (0)7808 791265, Email [email protected]