Multilateral Institutions BRICS Banknew development bank BRICS Bank

Multilateral Institutions

BRICS Banknew development bank

BRICS Bank ▹ Formerly referred to as the BRICS Development Bank ▹ Formed on July 2014 and came into force in July 2015 ▹ Headquartered in Shanghai ▹ BRICS supports its member countries as well as other emerging economies in sustainable infrastructural development by providing the required aid 3

Structure ▹ Initial capital contribution will be $10 billion each ▹ It is expected that the new members who will be joining later will provide an investment of $50 billion ▹ Creation of a $100 -billion “contingency reserve arrangement” (CRA) ▹ All the five countries have equal power. There is no Veto system ▹ It will provide loans denominated in local currency in addition to US dollar loans 4

Future plans and strategies for 2017 -2021 ▹ ▹ NDB intends to be “new” in three broad areas: ￭ Relationships ￭ Projects and Instruments, and ￭ Approaches Key Areas of Operation Expansion of Membership Strengthening its: ￭ Financial Solidity and ￭ Human Resources 5

International Monetary Fund

IMF The International Monetary Fund is an international organization that aims to promote global economic growth and financial stability, to encourage international trade, and to reduce poverty. Membership: 189 countries ▹ ▹ ▹ Headquarters: Washington, D. C. President - Christine Lagarde Original aims: promote international monetary cooperation; facilitate the expansion and balanced growth of international trade; promote exchange stability; assist in the establishment of a multilateral system of payments; and make resources available (with adequate safeguards) to members experiencing balance of payments difficulties ￭ ￭ ￭ 7

Functions Of IMF Ø Ø The IMF’s underlying principle is to ensure the stability of the international monetary system. It does so in three ways: Surveillance The IMF advises its 189 member countries on policy adjustments and monitors their financial and economic policies. Lending The IMF provides loans to its member countries who are experiencing actual or potential balance of payment problem. This will provide financial assistance to countries and help them in stabilizing their currencies , rebuild their international reserves and reestablish conditions for strong economic growth. Unlike development banks, the IMF does not lend for specific projects. 8

Ø “ Capacity Development IMF capacity development— technical assistance and training— enables member countries to outline and execute financial strategies that cultivate robustness and development by stabilizing their institutional capacity and abilities. The IMF looks to expand on collaborations between technical assistance and preparing to boost their viability 9

Asian Development Bank

ADB ▹ Asian Development Bank is a regional development bank ▹ Established on 19 December 1966 ▹ Headquartered in Manila, Philippies ▹ ▹ Current President of A. D. B. and the Chairperson of ADB’s Board of Directors is Takehiko Nakao from Japan To promote social and economic development in Asia 11

Focus Areas Of ADB Eighty percent of ADB’s lending is concentrated public sector lending in five operational areas: ▹ Education ▹ Environment, Climate Change, and Disaster Risk Management ▹ Finance Sector Development ▹ Infrastructure ▹ Regional Cooperation and Integration ▹ Private Sector Lending 12

Functions Of ADB ▹ ▹ Provides Equity Investments and Loans to Developing Member Countries (DMCs) Facilitates and promote public and private capital for development ▹ Provides advisory services and technical assistance for the planning and execution of developing projects and programs ▹ Assists in coordinating development policies and plans of its Developing Member Countries 13

Comparison between BRICS IMF and ADB

Vision & Focus • 1. 2. 3. 4. IMF focuses on Monetary corporation among countries Enable exchange rate stability Try to create balance in the foreign trade Assist in poverty reduction • 1. 2. 3. ADB focuses on Overall development of Asian countries Managing overall environmentof the Asian countries ‘’Fighting poverty in Asia” is there tagline • 1. 2. 3. 4. NDB- BRICK’S focuses on Five nation’s overall economic development Focuses on industrial development dominantly Contingent Reserve Arrangement (CRA) Acceptance of local currencies of member countries for trade purposes 15

Various devices used by IMF, ADB & NDB Track keeping of member countries • Providing loans • Provide policy advice • Aid for poverty prevention Working for the poor • Provide consultancy • Loans, grant, technical assistance • Mobilization of financial resources Mobilization of resources for infrastructural development • Investment in equity • Loans for projects 16

CREDITS ▹ Ndbint. (2018). New Development Bank. Retrieved 4 March, 2018, from https: //www. ndb. int/about-us/ndb-headquarters/ ▹ Adborg. (2018). Asian Development Bank. Retrieved 4 March, 2018, from https: //www. adb. org/ ▹ ▹ Imforg. (2018). Imforg. Retrieved 4 March, 2018, from http: //www. imf. org/ ▹ Businessinsidercom. (2018). Business Insider. Retrieved 4 March, 2018, from http: //uk. businessinsider. com/the-brics-countries-justlaunched-a-rival-to-the-imf-and-world-bank-2015 -7 Bankonceptsin. (2018). Bankonceptsin. Retrieved 4 March, 2018, from http: //www. bankoncepts. in/2015/03/international-developmentbanks. html 17

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