Prime Minister Manmohan Singh, is preparing to present at the 4th Summit of theBRICs – the bloc formed by Brazil, Russia, India, China and South Africa – the proposal to establish a development bank group. The new bank should be a kind of alternative to the World Bank and International Monetary Fund (IMF). The expectation is that at the end of the summit, the presidents to sign a statement indicating a willingness to create the institution, but without specifying the details.
Brazilian negotiators say that several points of the proposal need to be defined and the process will be long term. For Brazilians, it is necessary to establish a number of aspects such as terms of reference, the structure of the body, as will be paid the principal and practices of bilateral and multilateral trade.
The Indians argue that the proposal is to create a mechanism for funding of projects exclusively in developing countries. The idea is to rotate the presidency of the institution is among the five members of the BRICs. In addition,the present leaders should reaffirm the defense debates of the expansion of the IMF.