New De­vel­op­ment Bank an as­ser­tion of sovereignty

The Pak Banker - - COMPANIES/BOSS -

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.

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