By Anna Zvagulis
Synonymously proposed by the BRICS countries, the New Development Bank will have a new focus.
China, Russia and Brazil promise to contribute 0,6% of their GDP to the New Development Bank in order to help development of the Republic of India and the Republic of South Africa. This brings it to a total of 76 billion USD.
India and South Africa will contribute a mere 0.01% of their GDP, as both states require more economic assistance before they can become full members of the New Development Bank.
In a recent interview, China indicated that it was “grateful to form better trading ties with countries such as India and South Africa.” Also, a Chinese delegate from the General Assembly said that this money will be used to supply countries worldwide with energy.
BRICS countries caution that “The GDP values in the analysis are not very accurate,” and therefore they are subject to change. However, the recent proposition gives an “approximate division of control over the bank.”
As of now, the values stand that China will own 65% of the bank. Brazil will have 18% and Russia 16%. India will have 0,73% and South Africa 0,17%.
China says that the “goal is to bring [India and South Africa] forward economically, with the hope that they would be able to contribute to the development of their neighbor states.” Also, solving the global energy poverty crisis is on their agenda.