BRICS countries have finally launched the new Development Bank that aims to reduce the western dominance of international financial systems. The bank was launched in Russia on Tuesday with an initial capital injection of R 600 billion.
Its vice president - South Africa's Leslie Maasdorp - says the bank will help South Africa and other BRICS (Brazil, Russia, India, China and South Africa) member states in their infrastructure development which is critical for job creation.
The historic milestone has been hailed as a game changer in the global economic landscape and an alternative to the likes of the International Monetary Fund (IMF) and the World Bank.
But International Relations and Co-operation Minister, Maite Nkoana-Mashabane, says the new bank is not meant to compete with existing financial institutions; but will address the challenges facing the developing world.
''The first BRICS declaration is what BRICS stands for… that we will not just going to be looking at just economics and trade, but also the geo-political developments around the world. So as to give an alternative voice not against anyone but to say there is a yearning out there both in the developed and developing world. There is an upsurge of ordinary people saying the old economic model no longer works for anyone, it does not work for the developed world no longer solves the problems of 2015,” explains the minister.
Nkoana-Mashabane says the bank will help to deal with the challenges facing the country.