BRICS Bank to finance technological innovation projects, says Zhu Xian

BEIJING: The New Development Bank (NDB) set up by the BRICS plans to provide lending to technological innovation projects, its vice president Zhu Xian has said.

Established to meet emerging economies’ funding needs, the multilateral lender approved loans worth USD 1.5 billion last year, mainly to finance clean energy and infrastructure developments in BRICS countries - Brazil, Russia, India, China and South Africa. The BRICS’ share of the world economy shot up from 8.2 per cent in 2002 to 22.2 per cent in 2015. The BRICS now represents two thirds of the developing world’s economy.

The bank aims to foster technological innovation in developing nations through its financing, capability building and knowledge sharing, Zhu said yesterday at a financing forum held in Xiamen city, state-run Xinhua news agency reported.

This year’s BRICS summit would be held in Xiamen in September.

Zhu said such lending priority will set the bank on a new path different from the one taken by traditional multilateral financial institutions.

The developing nations account for more than 35 per cent of the world economy, but lack an equal share of deciding power in traditional multilateral lenders, Zhu said.

Trillions of dollars are needed every year as the developing world strives to upgrade industries and develop new energy sector.

“That will be the priority of BRICS NDB and Asian Infrastructure Investment Bank (AIIB),” Zhu said.

He said China has accumulated rich experience in technological innovation on infrastructure projects and is open to share such experience with other developing nations, the report said.