Five countries are tired of US dominance of the global financial system and are building their own versions of the World Bank and the International Monetary Fund (IMF).
The group is called BRICS, and the members are all developing newly industrialized countries that are distinguished by their large, fast-growing economies and significant influence on regional and global affairs.
Brazil, Russia, India, China and South Africa -the so-called BRICS countries – are seeking “alternatives to the existing world order,” said Harold Trinkunas, director of the Latin America Initiative at the Brookings Institution.
At a summit Tuesday through Thursday in Brazil, the five countries will unveil a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.
The five countries will invest equally in the lender, tentatively called the New Development Bank. Other countries may join later.
The BRICS powers are still jousting over the location of the bank’s headquarters – Shanghai, Moscow, New Delhi or Johannesburg. The headquarters skirmish is part of a larger struggle to keep China, the world’s second-biggest economy, from dominating the new bank the way the United States has dominated the World Bank.