BRICS Summit clears setting up of New Development Bank

Brazil: Leaders of the five BRICS countries met for the first working session in Brazil in a major victory for India, sealed the agreement on the much anticipated 100 billion dollars BRICS Development Bank. The new development bank of the group of BRICS countries will be headquartered in Shanghai, China, with the presidency initially held by India. The deal was reached after intense last-minute negotiations to settle a dispute between India and China over the headquarters of the new bank, which will have initial capital of $100 billion to invest in infrastructure projects. Negotiations to create the bank dragged on for more than two years as Brazil and India fought China’s attempts to get a bigger share in the lender than the others. The stark economic and political differences between the BRICS countries have made it difficult for the group to turn rhetoric to concrete action in coordinating policies.