This paper was written by Lysa John.
© Oxfam International July 2014.
SUMMARY:
In July 2014, a new multilateral and Southern-led development bank was launched by the leaders of Brazil, Russia, India, China and South Africa—better known as the BRICS. The BRICS Development Bank will provide a fresh source of finance for developing and emerging economies to meet their development needs. Little has been made public regarding the proposed Bank's core mandate or activities but while governments negotiate the technicalities of the Bank, it is critical that they also provide a solid vision of the principles, priorities and objectives on which the Bank's activities and operations will be premised. This policy brief recommends that these include commitments to: ending extreme poverty and inequality, with a special focus on gender equity and women's rights; aligning with environmental and social safeguards and establishing mechanisms for information sharing, accountability and redress; leadership on the sustainable development agenda; the creation of mechanisms for public consultation and debate; and the adoption a truly democratic governance structure.
BACKGROUND:
The association of five major emerging national economies, Brazil, Russia, India, China and South Africa (BRICS) has a special responsibility towards helping the world achieve its goal of ending extreme poverty, reducing inequality and achieving sustainable development, as they collectively represent some of the world's greatest challenges and achievements. Despite remarkable strides made in reducing poverty within India and China, BRICS countries still house nearly half of the world's poor and—with the exception of Brazil—have experienced a rise in inequality in recent years. The creation of a BRICS Bank, and with it the promise of reforming the global development architecture, offers a real and concrete opportunity for governments of these countries to ensure development financing is sensitive to the needs of those who are poorest and most marginalized. In a press release issued during the 2013 Durban BRICS Summit, Oxfam said: 'BRICS leaders are blazing a trail in reforming the global financial architecture. But the devil is in the detail. If the BRICS Bank fights poverty and inequality it could be a big success. But if it focuses only on big-ticket schemes that fail to directly benefit poor people it could do more harm than good.'1
There are currently very few documents within the public domain that clearly articulate a mandate and framework for the proposed BRICS Bank, particularly from a pro-poor and pro-equity perspective. Furthermore, civil society engagement with BRICS-related processes has been relatively low, although there is interest to engage much more substantively. This policy brief aims to move beyond the BRICS governments' current focus on technicalities around capital contribution and governance, and instead provide a solid vision for the principles, priorities and objectives on which the Bank's activities and operations should be premised. It seeks to demonstrate how the BRICS Bank could be used as an instrument to promote pro-poor development and reduce inequalities, both within the BRICS countries and in other partner countries where projects will be implemented
© Oxfam International July 2014.
SUMMARY:
In July 2014, a new multilateral and Southern-led development bank was launched by the leaders of Brazil, Russia, India, China and South Africa—better known as the BRICS. The BRICS Development Bank will provide a fresh source of finance for developing and emerging economies to meet their development needs. Little has been made public regarding the proposed Bank's core mandate or activities but while governments negotiate the technicalities of the Bank, it is critical that they also provide a solid vision of the principles, priorities and objectives on which the Bank's activities and operations will be premised. This policy brief recommends that these include commitments to: ending extreme poverty and inequality, with a special focus on gender equity and women's rights; aligning with environmental and social safeguards and establishing mechanisms for information sharing, accountability and redress; leadership on the sustainable development agenda; the creation of mechanisms for public consultation and debate; and the adoption a truly democratic governance structure.
BACKGROUND:
The association of five major emerging national economies, Brazil, Russia, India, China and South Africa (BRICS) has a special responsibility towards helping the world achieve its goal of ending extreme poverty, reducing inequality and achieving sustainable development, as they collectively represent some of the world's greatest challenges and achievements. Despite remarkable strides made in reducing poverty within India and China, BRICS countries still house nearly half of the world's poor and—with the exception of Brazil—have experienced a rise in inequality in recent years. The creation of a BRICS Bank, and with it the promise of reforming the global development architecture, offers a real and concrete opportunity for governments of these countries to ensure development financing is sensitive to the needs of those who are poorest and most marginalized. In a press release issued during the 2013 Durban BRICS Summit, Oxfam said: 'BRICS leaders are blazing a trail in reforming the global financial architecture. But the devil is in the detail. If the BRICS Bank fights poverty and inequality it could be a big success. But if it focuses only on big-ticket schemes that fail to directly benefit poor people it could do more harm than good.'1
There are currently very few documents within the public domain that clearly articulate a mandate and framework for the proposed BRICS Bank, particularly from a pro-poor and pro-equity perspective. Furthermore, civil society engagement with BRICS-related processes has been relatively low, although there is interest to engage much more substantively. This policy brief aims to move beyond the BRICS governments' current focus on technicalities around capital contribution and governance, and instead provide a solid vision for the principles, priorities and objectives on which the Bank's activities and operations should be premised. It seeks to demonstrate how the BRICS Bank could be used as an instrument to promote pro-poor development and reduce inequalities, both within the BRICS countries and in other partner countries where projects will be implemented
