New Development Bank an assertion of sovereignty
The formation of the New Development Bank (NDB) of the Brazil-Russia-India-ChinaSouth Africa (BRICS) grouping is an assertion of the Global South and its significance would be felt beyond the economic domain, K.V. Kamath, the bank's President told media.
"To put it another way, it is the rise of the South, and so we are talking about countries of the South coming together and very humbly saying that we can set up an institution on our own and thereafter we (can) take it forward. As we go along, we will clearly look at membership on a wider framework, but I think these countries can be justly proud that this was an effort from the South to start with." The New Development Bank was not an economic instrument alone, but an initiative that also symbol- ised an assertion of political sovereignty of the five emerging economies, Mr. Kamat said. "You are absolutely right. For instance, if you look at the currency reserve arrangement that is in place in the BRICS context, it is a commitment of another 100 billion dollars. Plus, when we have looked at the markets, including the domestic and the financial markets, it is clear that there is depth in the markets of the five member economies to raise money locally. I think all his comes together to signpost something that is significantly more than just economic change."
Mr. Kamath said he fully supported the "Belt and Road" connectivity initiative taken by China to establish new growth engines along the Eurasian corridor. "We are looking at this initiative taken by China very positively, because the act of investment will create growth for all countries that are touched along the Belt and Road.