A new development bank that will complement – and compete with – the World Bank and the IMF is on the fast track. With a view to reshape the global financial architecture long dominated by Western countries, the ‘big five’ of the developing world, the BRICS nations, have agreed to create their own version of International currency reserve at their fifth annual summit held at Durban in 2013. The leaders of Brazil, Russia, India, China and South Africa (BRICS) are working on a joint development bank that could be a reality in 2014.
Many Western country’s officials, economists from round the world and financial institutions are questioning the formation of this bank. The answer is there is a place for a development bank that is more in sync with the needs of developing countries.