World Bank assures support for BRICS Development Bank

World Bank today expressed its willingness to support the proposal of BRICS nations to set up a Development Bank to insulate their economies from the ongoing economic problems, rising oil prices and currency volatility.

"India was one of the sponsors of this idea (BRICS bank). And partly because they wanted more funds for infrastructure development...if they do develop an institution, the Bank will want to be partner with it", World Bank President Robert Zoellick told reporters at the end of his five-day visit to the country.

The summit of BRICS -- Brazil, Russia, India, China and South Africa -- yesterday decided to examine the possibility of setting up a Bank on the lines of World Bank and Asian Development Bank to mobilise resources for infrastructure and sustainable developments in emerging economies.

"We direct our Finance Ministers to examine the feasibility and viability of such an initiative, set up a joint working group for further study and report back to us by the next summit", said the declaration issued after the summit which, among others, was attended by Prime Minister Manmohan Singh.

Replying to questions on the possibility of setting up of such a multilateral bank, Zoellick said, "just as we are with NGOs, civil society groups and National Development Banks... we will be able to compliment each other.

"We have the benefit of being global, we have 187 shareholders and operate in 120 countries. So might be able to share the knowledge and experience", he added.

Earlier, the World Bank Chief had a meeting with Finance Minister Pranab Mukherjee and discussed the role which the Bank can play for development of economies of the region.

Besides the finance minister, he also held meetings with economists and think-tanks as part of his India visit.

China allays fears over its domination of BRICS 'Bank'

Allaying apprehensions that China with its financial muscle would dominate the proposed BRICS Bank, Beijing today said it is a "meaningful endeavour" aimed at achieving a win-win deal for developing countries.

Foreign Ministry spokesman Hong Lei told reporters here that the just concluded New Delhi BRICS summit discussed a proposal to set up such a bank in order to pool financial resources for infrastructure and sustainable development projects in the developing countries.

"The meeting asked Ministers to conduct a feasibility study on the setting up this bank," he said, adding that the proposed bank aims at enhancing the well-being of developing countries.

"I think this is very meaningful endeavour and such a step will contribute to investment, trade and development of the developing countries and will result in win-win outcomes for all countries. China would like to play a positive role in it," he said.

About the summit, Hong said the "successfully concluded" meeting showed the spirit of solidarity and partnership with a message of unity, cooperation and win-win outcome to the world.

China, India, Brazil, Russia and South Africa are members of the BRICS grouping.

He said the meeting has brought about an important consensus on promoting global economic governance besides pushing ahead practical cooperation among the BRICS countries in all fields.

"The leaders reached important and wide ranging consensus on major international and regional issues of common interest," he said.

The meeting has shown that the cooperation among BRICS countries is in line with the trend of peace, development and cooperation.

"China believes that this cooperation will reach higher levels and will continue to play a constructive role in promoting global economic growth, improving global economic governance, strengthening multilateralism and democracy in international relations," he said.

"We are fully confident in the development of BRICS countries and their cooperation," he said.

Source: Financial Express