A new cycle of BRICS Summit has begun as Brazil hosted the Sixth Summit in the city of Fortaleza from 14-16 July 2014. A major milestone in the short history of BRICS enabled the leaders to prepare a road map to strengthen and promote global economic growth, peace and stability.
The two major outcomes from the Summit, first being the establishment of the New Development Bank, to be located in Shanghai and will help fund infrastructure and sustainable development projects not only in the BRICS countries but also in other developing economies. An excellent move by the leaders could hedge off any possible future economic crisis as well as be a very important step towards reconfiguration in the international economic governance. As the first Presidency is being taken by India for a period of five years, it gives a unique opportunity to play a proactive role in giving shape to the Bank.
Secondly, The Contingent Reserve Arrangement is especially significant achievement for the BRICS countries and the developing world. The Arrangement will give us a supplementary means of cushion aligned with any sudden external pressures on the rupee and is particularly helpful at a time of persisting risk of volatility in international financial markets.
In order to strengthen intra-BRICS cooperation, a number of proposals were made in the areas of online education, affordable health care platform, a virtual BRICS University, small and medium enterprises, tourism, youth exchange and science and technology.
The July 2014 edition of the Multilateral Newsletter highlights the key pointers from the Sixth BRICS Summit. In addition, it also tracks the key recommendations from the B20 Summit held in Sydney and the major happenings at World Bank, Asian Development Bank, International Trade Centre and UNCTAD.