The Brazil, Russia, India, China and South Africa (BRICS) summit, scheduled for March this year will now be taking place in July, instead. Though a specific date has not been finalized as of now, it has been tentatively slated for 15th of July. The reason behind this change of dates is that the authorities did not want the BRICS summit to clash with the much awaited 2014 FIFA World Cup which will continue till the 13th of July. The summit to be held at Fortaleza, Brazil will for the first time have Narendra Modi, India’s newly elected Prime Minister, in the meeting.
This BRICS summit will focus on developing the infrastructure projects as this is the area where these emerging economies need to improve the most. As it was announced in the meeting which was held last year in Durban, South Africa; the member countries will lay more focus on the ‘New Development Bank’ through which they will emphasize more on the infrastructure investments in these countries. The member countries are planning to raise some amount of initial capital so as to enable the bank to perform its operations. Another project that the meeting will focus on is the formation of a contingent reserve facility worth $100 billion dollars which will help solve the ‘short-term liquidity pressures’ in these countries.
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The start-up capital of $50 billion would be increased to $100 billion. Although Russia is suggesting equal distribution of capital i.e. 20% share for all, the exact distribution is yet to be decided. The project which was proposed in 2012 had been approved last year only, at the BRICS summit held in South Africa.
With more emphasis on the ‘New Development Bank’ and the infrastructure issues in these developing countries, the BRICS members are surely going to improve in this sector.
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