This is a move that has been expected, but the move to make it actually happen is important because it is by far the most significant undertaking by the BRICS alliance.
BRICS Nations Agree to Create Own Development Bank
The leaders of five emerging market powers said at a summit Tuesday that they gave final agreement to creating their own development bank worth $100 billion that will have its headquarters in China.
The first president of the New Development Bank will be from India and the position will rotate every five years among Brazil, Russia, India, China and South Africa — the so-called BRICS nations, a joint statement from the leaders said.
BRICS leaders conferred in a closed session earlier in the day at their conference in northeastern Brazil, then announced concrete plans for the bank at an afternoon session open to the press.
The new bank is seen as a strong push by the BRICS against the World Bank and the International Monetary Fund, which the developing world has long complained it far too U.S.- and European-centric.
In practice China has been serving this function with some nations in Africa and Latin America by offering them alternatives to dealing with the neoliberal global economic police and the major US and European financial institutions whose interest they serve.
One likely development project on their agenda would be the construction of data cables and internet backbone that don't pass through the sticky fingers of the NSA.