The leaders of the five emerging powers have agreed to establish a new development bank to help the poorest nations gain access to capital. Accusing the current financial institutions of doing little to help developing countries, the BRICS group, made up of Brazil, Russia, India, China and South Africa, has asked their respective finance ministers to design a financial institution on the model of the World Bank or of the Asian Development Bank which would then be financially supported by the nations adhering to the initiative. The BRICS have also agreed to develop business and commerce in their local currencies.
“The institutions created more than sixty years ago – he commented Manmohan Singh, Prime Minister of India – have not been able to keep up with an ever changing world. Developing countries need to have access to credit”.
The five countries represent 45% of the world's population, a quarter of the earth's surface and a quarter of the world economy. World Bank President Robert Zoellick, present at the meeting, welcomed the BRICS initiative.
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