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FE@CAMPUS MASTERMIND: Response by Manu Gupta to question for April 1-7

Is a BRICS- led development bank- to rival Western-dominated institutes like the World Bank- a good idea?

Written by Fe Bureau | New Delhi | Published: April 6, 2013 2:31:38 pm

Although in the recent past the BRICS economies have been growing very fast and at the same after the 2008 recession the pace of growth of the western economies have taken a beating. In such a scenario it is good to think that some time in future a BRICS let development bank can rival western institutions such as the World bank. In the more recent past there have been talks that with the rise of china and US facing a tough time there are possibilities of YAUN replacing USD as the currency for international currency. Keeping all these points there are good prospects of a BRICS development bank giving tough competition to the western institutions. But in the more recent past we have seen a decline in the growth rates of the BRICSS economies for example China which had witnessed a robust double digit growth rate in the first decade of the 21st century has seen a decline to single digit growth rate. This is mainly because of decline in the export demand. Hence in case all the BRICS nations have to concentrate on the domestic demand which can result in sustained growth rate which in turn would enable them to think of making such an agency.

Manu Gupta

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