They are planning to nominate an alternative
candidate for the post of the Chairman of
the World Bank for the first time
in history. BRICS also demands redistribution of quotas in
Monetary Fund in the near future and intends to study India’s initiative on
creating a South-South Bank.
BRICS member-states are convinced that it is essential to create competition for the US candidate, either from a BRICS country or from Europe. It has been decided to prepare a declaration on a coordinated position on this subject in the next two weeks.
the post of the head of the World Bank should be determined by the 23rd of
BRICS member-states will be playing the main role in it, according to the quotas of votes. In this context they will have to assume serious financial responsibilities.
The project looks promising but needs detailed studying, President of the Russian Financial Corporation Andrey Nechayev says.
In any case, India’s initiative on creating a South-South Bank is an attempt by BRICS member-states to offer their mite to the establishment of a new world financial system.
They are planning to take a place in it
according to their global weight. The rate of the Brazilian, Russian,
Indian, Chinese and South African growing economies in world production
exceeds 21% and these countries’ currency reserves exceed $4trln.
BRICS member-states intend to upgrade their role in the IMF. They are ready to discuss the strengthening of the Fund’s resource base, in particular, for helping the EU to get out of the debt crisis. At the same time, they demand redistribution of the Fund’s quotas, which means both the realignment of world financial flows and the rearrangement of votes when the IMF makes decisions.
At present, almost half of the votes belong to the EU and the US, while BRICS member-states have about 10%. In 2010 BRICS raised its quota a little but its potential is still underrated. The West will keep trying to hamper the IMF reform, so as to prevent countries with growing markets from strengthening their positions.
Meanwhile, the need for replenishing the IMF
resource base will apparently make the management of the Fund respond to the