GUYANA will be moving to gain membership of the New Development Bank backed by the emerging nations of Brazil, Russia, India, China and South Africa, commonly referred to as the BRICS nations.

The new US$100 billion international bank, which is dedicated to the emerging BRICS countries, opened in China’s commercial hub of Shanghai on Tuesday last.

Minister of State, Mr Joseph Harmon, in a brief interview yesterday, told the Chronicle that while the Administration has not yet had any discussion on the bank, the certainty is there that the Government will be applying for membership.

He pointed out that the Government will be going in this direction since access and terms for financing for development would be more accommodating to Third World countries.

This new bank has touted itself as an “alternative to the existing U.S.-dominated World Bank and International Monetary Fund [IMF]”. It will address needs for infrastructure and sustainable development.

The new bank has been viewed as a challenge to Washington-based institutions, and comes as Beijing — seeking a greater role on the global political stage to mirror its rise to become the world’s second-largest economy — is also setting up a separate Asian Infrastructure Investment Bank.

EARLIER COMMITMENT

In July last year, former President Donald Ramotar had said his Administration would be moving to become a member of that financial institution when it is established. He had said that his decision was informed because the bank reflected the introduction of more options for international funding for Guyana, rather than because he had intention to sever ties with the World Bank and the International Monetary Fund (IMF).

Mr. Ramotar had lamented that some Third World countries have faced many challenges to financing important developmental projects, and he had registered his confidence in the BRICS bank, which at the time was being conceptualised.

“The new bank was founded with the purpose of mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging and developing countries”; and “add to the efforts of others to fight against poverty and underdevelopment,” Mr Ramotar had said.

He had given commitment to join the bank following his attendance of the BRICS Fortaleza Summit in Brazil.

NEW CENTRES OF POWER
Russian Foreign Minister Sergei Lavrov was recently quoted by website ‘The Strait Times’ as saying that BRICS “illustrates a new polycentric system of international relations”, demonstrating the increasing influence of “new centres of power”.

The BRICS nations, which represent 40 per cent of the world’s population, formally agreed to establish the bank at a meeting in Brazil in July last year.

The World Bank, in a statement, said it hopes to work with the newcomer.
“We are committed to working closely with the New Development Bank and other multilateral institutions, offering to share our knowledge and to co-finance infrastructure projects,” World Bank President Jim Yong Kim said.

Minister Harmon was at the time not certain if the former Administration had formally applied to become a member of the New Development Bank, but he said if they had already done so, the David Granger-led Administration will follow through.

Guyana has benefited immensely from closer bilateral relations with BRICS nations, especially China and India.

The grouping was originally known as “BRIC” before the inclusion of South Africa in 2010.

The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs. Moreover, all five countries are G-20 members.

BRICS represents some three billion people in the world’s developing or newly industrialised countries, and has a combined nominal Gross Domestic Product of some US$16 trillion, and an estimated US$4 trillion in combined foreign reserves.

According to Wikipedia, the combined nominal Gross Domestic Product (GDP) of the five BRICS nations is equivalent to approximately 20 per cent of the gross world product.

Bilateral relations among BRICS nations have mainly been conducted on the basis of non-interference, equality, and mutual benefit (win-win). It is estimated that the combined GDP of BRICS would reach US$50 trillion by 2020.

By Tajeram Mohabir