BRICS New Development Bank – Promoting Reform with an All-Win Strategy
Focus on Infrastructure Projects
In early discussions of the founding of the NDB, it has been confirmed that one of the objectives is to support the infrastructure projects that are badly needed in developing countries but require long periods of time and large amounts of money, and yield relatively low economic returns. Such projects include high-speed railways, electricity lines, dams, computing centers, and data centers.
Owing to the large number of applications for such projects, the World Bank is unable to give assistance thoroughly. Besides, the economic and political conditions imposed are hard to accept as most applicant countries have learned hard lessons. On top of that, to commercial investors and politicians who focus on polls and public opinions in developed countries, engaging in infrastructure projects means investing in the long term. The high risks and low economic results this entails make it seem to them an irrational act.
In this regard, the BRICS countries have their own advantages. First, they are able to solve the problems of construction and funding simultaneously by themselves. They can offer relatively complete solutions to boost development instead of simply making a show. Second, BRICS countries do not impose economic and political conditions on recipient countries, because they have been in the same shoes. Finally, compared with developed countries, emerging economies, which are often less democratic states judged by Western criteria, are able to pay more attention to long-term strategic projects.
Moving towards Multipolarization in Global Governance
In short, the establishment of the NDB is an important step for BRICS countries to promote inclusive growth as well as a significant process for a global governance system moving substantially towards multipolarization. It is a long, historic process in which emerging economies represented by the BRICS, developing countries in general, and the NDB itself can expect to face and cope with various challenges.
For China, the establishment and improvement of the NDB is a key point in implementing its BRICS strategy, whose significance equals that of China’s policies towards the Third World when the classification of three worlds was proposed. Through this bank, China will illustrate the mode of action for new-model major countries it put forward, and advance reforms of win-win results. In this process, world history is expected to turn a new page, deserving concerted efforts from all of us.
SHEN YI is deputy director and associate professor of the Center for BRICS Studies at Fudan University.
