the brics bank was knowledge this week that will and to change the globe's financial infrastructure the development bank will rival the i.m.f. the world bank and office support the a mugging economy is the development bank will have initial capital of fifty billion dollars that could rise to one hundred billion funded equally by each nation and be headquartered in shanghai china with the president c initially held by india there will also be as a reserve fund for the five bric members see it as a mini i.m.f. i spoke to professor of economics well enough sufi his take on the significance of this new financial institution i think that is actually increases their potential influence at the world bank and the i.m.f. which is what i think that they all saw is one of their goals their goals is to create independent of the reasons for financial action but it also will be for the reaction to the fact that they do not have that much power in the world bank of the i.m.f. and i expect that there will be good for the recombination is going forward because the rest of the good of the world one of the brics to participate in the broader multilatera

monetary fund into the world bank in the five emerging economies of course brazil russia india china and south africa are hoping that this new bank will act as a rival party the i.m.f. and the world bank and end the global dominance of the u.s. dollar now initially each country will put in ten billion. ten billion us dollars it will equate to fifty billion the hope is that that will later rise to one hundred billion in the money will be spent on infrastructure and development projects in emerging economies now also what has been announced is. a fund is well worth one hundred billion that will protect these emerging economies protect the five nations from any potential global our future financial crisis so what's happening here in brics in twenty fourteen at this summit is that the five emerging economies really are trying to break away from the dependency of the u.s. dollar or the well if you look at the facts and figures you can see maybe why the i.m.f. the world bank not globally popular with everyone that financial crisis is that struck the world in two thousand and eight it's aftershocks still being felt in europe today their country the thought they'd found a

the i.m.f. and the world bank will soon have to make way for a new play the development course this is set to rival the role of the i.m.f. and the world the i.m.f. the world bearing of the so-called bretton woods institutions in the form of the second world war embracing the so-called american washington consensus but the washington consensus based on completely proficient doesn't always work. i want to website at r.t. dot com at the moment you can find details of a potential new arms race analysts are warning that japan's plan to reopen a nuclear reprocessing plant could push its neighbors to boost their own atomic arsenals also online and many houses would you buy for two hundred five million dollars would expect if you wouldn't you but a russian tycoon he only bought one you can find out on our website why that billionaire splashed out so much of his money for a dream house in london. as a new law on data recording and surveillance goes before the british parliament calls from human rights campaigners are becoming louder previous legislation on information security was abolished when the europea

their unity by finalizing the details on lifeline institutions the dust is the development bank this will rival the i.m.f. and the world bank and office support to the emerging economies brics member of the on to be ten billion dollars to begin with and eventually the bric bank will be one hundred billion the second is the stabilization fund which will support the five economic power as in case of global turbulence sino will contribute so to one billion dollars the russian resentment india will leaguers eighteen million. five that in the developing world now accounts will seventy five percent of the globe's currency. and entitle the brics countries hold around a full point five trillion dollars in exports earnings independent china specialist andrew long thinks it's an example of brics nations accumulating power in the international stage. the world is shifting into a from a uni polar kind of low order to a more multipolar all the more inclusive perhaps all of the various. releases and the cons of regional kind of interests rather than be dictated by a one size fits all kind of formula. so i think that there is a role

forged in the brazilian city of four to the world's top five emerging nations known as the brics have signed an agreement to create a rival to the i.m.f. the world bank venture capital host kitty pilgrim reports the breaks will intensify their unity by finalizing the details on two lifeline institutions the fuss is the development bank this will rival the i.m.f. and the world bank and offer support to the emerging economies these pricks member will contribute ten billion dollars to begin with and eventually the bric bank will be the one hundred billion the second is the stabilization fund which will support the five economic powers in case of global turbulence sino contribution so see one billion dollars. russia brazil and india will there's a team in south africa where. the developing world now accounts for seventy five percent of the globe's currency. and in total the brics countries hold around four point five trillion dollars in export earnings. an explosion in afghanistan's eastern paktika province has killed over eighty people after another deadly attack in the capital kabul to which left two presidential media stuff dead let's get up to speed

the world bank and the i.m.f. so edward can you give us your geo political analysis on you know what the brics are trying to do here well yeah i think you are spot on about being circumvent those two institutions because if you think back to. one thousand nine hundred eight the asian crisis things like basically the i.m.f. came in and hammered a asia in general and specifically you know countries like south korea etc and so forth and impose great costs and so you know they're within the emerging markets community there's a great desire to move away from the i.m.f. and to a degree the world bank as well and. you know the head germany of washington d.c. and it's right and so the brics given that they are the leading emerging market countries have now come together and sort of solidified this this desire in the in these institutions that are so i completely agree with what you're saying so part of this decision has to do with these nations feeling that their increasing economic and political strength is not fairly re

the i.m.f. and the world bank artie's venture capital host. the breaks will intensify their unity by finalizing the details on lifeline institutions the dust is the development bank this will rival the i.m.f. and the world bank and office to pull to the emerging economies brics member built on to be ten billion dollars to begin with and eventually the bric bank will be one hundred billion the second is the stabilization fund which will support the five economic powers in case of global turbulence sino will contribute to see one billion dollars the funds russia brazil and india will be gives eighteen billion. with life that in the developing world now accounts for seventy five percent of the globe's currency. and in tight so the brics countries hold around four point five trillion dollars in exports earnings the financial crisis struck the world in two thousand and eight but the aftershocks are still being felt in today's europe their countries that thought they'd found a savior in the form of the i.m.f. loans are now criticizing the lender for

the brics bank was launched this week that will end to change the globe's financial infrastructure the development bank will rival the i.m.f. or the world bank and office supports the emerging economies the development bank will have initial capital of fifty billion dollars that could rise to one hundred billion funded by each nation if we had cause it in shanghai china with the president c initially held by india there will also be i reserve funds for the five bric members to. as a mini i.m.f. i spoke to professor of economics well enough suffer his take on the significance of this new financial institution i think that is actually increases the potential influence at the world bank and the i.m.f. which is what i think that they all saw is one of their goals their goals is to create independence of pieces for financial action but it also live in order reaction to the fact that they do not have that much power in the world bank of the i.m.f. and i expect there will be a good further accommodations going forward because the rest of the good the world wants the brics to participate in the broader multilateral institutions whether the opt

western europe and japan laid the agenda for development in most of the world so this is a frontal challenge to the i.m.f. and the world bank that's a very productive and a good development the other thing that's very good is despite the fact that china has such an enormously larger economy than south africa or brazil the way the new brics development bret bank is going to be organized each of the brics countries will have the same vote which is very different from how the international monetary fund is organized where the countries that are the largest contributors dominate the decision making of the i.m.f. so in terms of global democracy this is a very important advance there's a little bit of a limitation or i would say i hesitate to smile too widely the first limitation is they've they've decided to denominate their holdings in dollars you know for a long time there was a tort that perhaps you were the yuan would be used as the main currency of the brics development bank or that they would use a basket of currencies but they've gone with the dollar and for very many reasons this is a terrible idea and if you do you thin

western europe and japan laid the agenda for development in most of the world so this is a frontal challenge to the i.m.f. and the world bank that's a very productive and a good development the other thing that's very good is despite the fact that china has such an enormously larger economy than south africa or brazil the way the new brics development bret bank is going to be organized each of the brics countries will have the same vote which is very different from how the international monetary fund is organized where the countries that are the largest contributors dominate the decision making of the i.m.f. so in terms of global democracy this is a very important advance there's a little bit of a limitation or i would say i hesitate to smile too widely the first limitation is that they've decided to denominate their holdings in dollars you know for a long time there was a tort that perhaps you were the yuan would be used as the main currency of the brics development bank or that they would use a basket of currencies but they've gone with the dollar and for very many reasons this is a terrible idea and if you think you real

western europe and japan laid the agenda for development in most of the world so this is a frontal challenge to the i.m.f. and the world bank that's a very productive and a good development the other thing that's very good is despite the fact that china has such an enormously larger economy than south africa or brazil the way the new brics development bret bank is going to be organized each of the brics countries will have the same vote which is very different from how the international monetary fund is organized where the countries that are the largest contributors dominate the decision making of the i.m.f. so in terms of global democracy this is a very important advance there's a little bit of a limitation or i would say i hesitate to smile too widely the first limitation is they've they've decided to denominate their holdings in dollars you know for a long time there was a tort that perhaps you were the yuan would be used as the main currency of the brics development bank or that they would use a basket of currencies but they've gone with the dollar and for very many reasons this is a terrible idea and if you think it re

western europe and japan laid the agenda for development in most of the world so this is a frontal challenge to the i.m.f. and the world bank that's a very productive and a good development the other thing that's very good is despite the fact that china has such an enormously larger economy than south africa or brazil the way the new brics development bret bank is going to be organized each of the brics countries will have the same vote which is very different from how the international monetary fund is organized where the countries that are the largest contributors dominate the decision making of the i.m.f. so in terms of global democracy this is a very important advance there's a little bit of a limitation i would say i hesitate to smile too widely the first limitation is that they've decided to denominate their holdings in dollars you know for a long time there was a tort that perhaps you were the yuan would be used as the main currency of the brics development bank or that they would use a basket of currencies but they've gone with the dollar and for very many reasons this is a terrible idea and if you think you really

western europe and japan laid the agenda for development in most of the world so this is a front to challenge to the i.m.f. and the world bank that's a very productive and a good development the other thing that's very good is despite the fact that china has such an enormously larger economy than south africa or brazil the way the new brics development bret bank is going to be organized each of the brics countries will have the same vote which is very different from how the international monetary fund is organized where the countries that are the largest contributors dominate the decision making of the i.m.f. so in terms of global democracy this is a very important advance there's a little bit of a limitation i would say i hesitate to smile too widely the first limitation is that they've decided to denominate their holdings in dollars you know for a long time there was a tort that perhaps you were the yuan would be used as the main currency of the brics development bank or that they would use a basket of currencies but they've gone with the dollar and for very many reasons this is a terrible idea and if you think it really q

developing countries namely brics the most significant of those was the establishment of a new global bank set up to rival the i.m.f. the world bank parties paul scott has more. the brics nations really look to strengthen ties and caught countries across the continent here in latin america as they look to develop and build what's being described as this new multi-polar world in an attempt to try and wrestle influence our global influence away from washington on his tour over the last six days putin has visited cuba nicaragua argentina and then finally here in brazil for the two thousand and fourteen brics summit the highlight of which was the announcement of the new one hundred billion dollar development bank and also the sustainability fund as well worth the same amount of money one hundred billion u.s. dollars is going to be seen as a long term rival to the international monetary fund and the world bank a. visit to the region also gave some other latin american nations a chance to sign some lucrative agreements with moscow russia will help cuba to explore its offshore oil reserves and have the moscow wrote off ninety percen

the brics bank was launched this week that will and to change the globe's financial link the structure the development bank will rival the i.m.f. or the world bank and office a port to the emerging economies the development bank will have additional capital of fifty billion dollars that could rise to one hundred billion funded equally by each nation if we had cause it in shanghai china with the president c initially held by india there will also be i reserve funds for the five bric members. as a mini i.m.f. i spent a professor of economics well enough suffa his take on the significance of this new financial institution i think that is actually increases their potential influence at the world bank and the i.m.f. which is what i think that they also just one of their goals their goals is to creatively depended pieces for financial action.

the i.m.f. and the world bank let's talk about facts and figures because this new. this new bridge bank is going to have one hundred billion u.s. dollars in reserve and forty one billion of those are going to be provided by china eighteen billion will be provided by russia india and brazil each well south africa will provide for i've been there. and i suppose the burning question has to be do we need this bank or the fact of the matter is that the emerging economies are actually mainly creditors for the developed nations meaning that they are financing the developed countries now the developing world accounts for around seventy five percent of the world's total currency was a watt power of wealth distribution why is very much still with the west not purely because traditionally however the tide is turning and times are changing and the process could be accelerated by what happens here in brazil a bridge twenty forty ok thank you very much mr scott in brazil for us now talking of the country where the final of the world cup will take place today i went along to the s

i have more than a hundred ninety different countries around the world as well as organizations like the e.u. the i.m.f. and the world bank joining me now for more on this is redacted correspondent sam sachs. ravenously yeah you brought your brought your family in this whole family we have the documents there right here right right what can you tell us about them well the first thing i can tell you about the documents is that . that. well they're on sheets of white paper that their own sheets white paper here you know what i say oh what do they say and what do they say well reading reading the documents is. well it's easy because the ink is black which is good on white paper there's all sorts of upper case and lower case when you can tell difference between titles and body text oh also the phone is times new roman much better than the old roman stuff i just couldn't couldn't handle that and you haven't read the documents i mean what. you have and of the documents. no no i haven't read the documents fully i haven't read the documents look at the world cup is on nobody is doing it like literally around the world nobody is d

that's where the world's top five emerging nations known as the brics have been putting finishing touches on a plan to create a rival the i.m.f. and the world bank artie's venture capital capital host pilbeam. the breaks will intensify their unity by finalizing the details on two lifeline institutions the fuss is the development bank this will rival the i.m.f. and the wall of bank and office support to the emerging economies brics member going to be ten billion dollars to begin with and eventually the bric bank will be one hundred billion the second is the stabilization fund which will support the five economic powers in case of global turbulence sino so see one billion dollars the russian resentment india will be given eighteen million. life that in the developing world now accounts will seventy five percent of the globe's currency . and in tight so the brics countries hold around four point five trillion dollars in exports earnings. taking a look at some global headlines now an explosion in afghanistan's eastern paktika province has killed more than eighty people following another deadly attack in the capital public that left two presidential

to be discussed here is this development bank between the brics countries that they're trying to establish as kind of an alternative to the world bank and the i.m.f. do you think what are your expectations for that. well i think they are trying to tie and i think it's almost inevitable that something is going to happen because ultimately when you have a look at the i.m.f. and even the world bank i mean these two organizations tend to be controlled by the leaders in the west and many of these developing countries particularly these brits country are saying that the thing to be left out of that don't believe they need to be able to have a bank at the road and say how can we have the bank will look after the needs of our people and in other words you know look at things like the structural requirements of these countries and also to try and equalize to some extent you know the kind of bubbles that are beginning to form in some of the countries now in terms of russia and china they recently signed this historic gas deal there is going to be a meeting between vladimir putin and she jinping on the sidelines of the brics summit what do you think they're

countries that of the brics the most significant significant was the establishment of a new global bank set up to rival the i.m.f. and world bank the founder members have provided one hundred billion dollars in funding and some other latin american nations use of lot of mayor putin's visit to the region as a chance to make some lucrative agreements with russia in fact russia will help cuba explore its off shore oil reserves with both also agreeing to work together on global information security moscow's atomic energy corporation corporation is likely to bolster its presence in argentina all as part of a nuclear cooperation deal and russia's trade and security ties with our fellow brics member brazil should also now increase increase significantly there was a time for more than just business at the summit as artie's call scott had a chance to find out six days four countries and numerous photo opportunities hussein's tour of latin america considered a success. everyone knows that russia has always stood side by side with india during the toughest moments and without demanding anything in return. russia has taken on the bato

the first five years so it's a hundred billion hundred billion it's development bank it's designed for infrastructure projects projects and i've spent quite a lot of clients he has the i.m.f. and the world bank and us to germany kind of a we don't need you know like we can manage this on a regard to sources and you know they've set up reserves of one hundred one hundred billion and a lot of clients i've spoken to people. this is a step towards moving to some kind of bullion backed banking system currency what there was a rumor that the deal between china and russia which was a four hundred billion dollar gas deal. that at some point they're going to announce there is a precious metal component to that deal there is a gold in the mix so if you've heard anything on that rumor i haven't heard anything more on that remit than exactly what you've just said to c.b.i. mostly not in that with the people of it dealing with. the real us and i'm going in there as all current company they didn't consult me but i also had the james tech wasn't consulted so i don't see where that it take a bit ten's of being ca the last a company wanted things i want to say was the fact that we are looking at launchi

the i.m.f. by the world bank by private for cost is all the time it's not just a one off cyclical change this is something to do with growth models that have run out of steam it's to do with the need to reboot the way in which countries. achieve economic growth and the old models i think are. being shown to be rather flawed and not fit for purpose. that was economist and author george magnus. time now for a very quick break but stick around because when we return ishwar personified author of the dollar will be on the program no ishwar sat down with me to discuss asia and the emerging markets and then in today's big deal edward harris and i are looking into the world of output driven transportation i'm talking about over with and hello the other ones out there and remember you can see all segments featured in today's show on you tube a you tube dot com bust boom bust or two and on hulu at hulu dot com plus boom down bust now before we go here are a look at the mere closing numbers of the dell compaq. in the crosshairs as israel appears to be preparing for still another assault on the gaza strip o