Friday, 18 July 2014

Next BRICS Summit to be held in Russia

i. The next year's BRICS Summit will be held in the Russian city of Ufa after the grouping's successful meeting in Brazil that saw an agreement being reached on establishing a development bank and a contingency reserve arrangement
ii. "Brazil, India, China and South Africa convey their appreciation to Russia for its offer to host the Seventh BRICS Summit in 2015 in the city of Ufa and extend their full support to that end," the BRICS leaders said in the Fortaleza Declaration. 
iii. Ufa is the capital city of the Republic of Bashkortostan, Russia, and the industrial, economic, scientific and cultural centre of the republic. 
iv. The sixth summit held here was attended by Prime Minister Narendra Modi, Presidents Vladimir Putin of Russia, Xi Jinping of China, Jacob Zuma of South Africa and Dilma Rousseff of Brazil, as they deliberated on global economic, political and strategic issues. 
v. BRICS Summit last night decided to establish the New Development Bank with an initial authorised capital of USD 100 billion for which the initial subscribed capital will be equally shared by the founding members, a point New Delhi emphasised to prevent domination by anyone of the members. 
vi. During the summit, agreement was also reached on establishing a contingency reserve arrangement with an initial size of USD 100 billion. 

vii. Russia, India, China and South Africa also extend their warm appreciation to the Government and people of Brazil for hosting the Sixth BRICS Summit in Fortaleza. 

Thursday, 17 July 2014

BRICS to create 100 billion dollar development bank and emergency reserve fund

i. BRICS nations on 15 July 2014 signed a deal to create a new 100 billion US dollar development bank and emergency reserve fund.
ii. The deal to from the bank was signed during the 6th BRICS Summit being held in Fortaleza, Brazil form 15 July to 16 July 2014). BRICS group includes Brazil, Russia, India, China and South Africa.
iii. Creation of the bank was announced after a plenary meet at a BRICS summit meet by Brazil’s President, Dilma Rousseff. 
iv. As per the deal, the capital of the bank will be split equally among the five participating countries, while headquarter will be in Shanghai, China.
v. The Bank will have a rotating chair and its first President will come from India for the first six years. The Bank will also have a regional office in Johannesburg, South Africa. 
vi. The Bank’s board will have five Finance Ministers and will be chaired by Brazil. Initially the bank will be involved in infrastructure projects in the BRICS nations. 
vii. BRICS Finance ministers or central banks’ governors will form a governing body to manage the CRA while it will be presided over by the BRICS President. The BRICS CRA will not be open to outsiders.

Participant leaders of the five nations are 
• Brazil - Dilma Rousseff
• Russian - Vladimir Putin
• Indian - Narendra Modi
• China - Xi Jinping
• South Africa - Jacob Zuma 

Contribution of different nations
• China will contribute 41 billion US dollar
• Brazil, Russia and India will contribute 18 billion US dollar each
• South Africa will provide 5 billion US dollar