The BRICS nations convened in the Russian city of Ufa for the BRICS Summit last week to discuss cooperation on international and regional issues of common interest. The BRICS meeting was held in conjunction with the Shanghai Cooperation Organization and represents the seventh formal meeting of the BRICS nations. The meetings discussed several issues of central importance to China. While China's role in the BRICS alliance may be viewed as an attempt to build up its own power outside of U.S.-dominated institutions, we believe this perspective is simplistic.
MOSCOW -- Countries like India and Brazil -- unlike, say, Germany and Japan a century ago -- are not seeking to overturn the world order. All they want is a place at the high table. Barring that, they have little choice but to build their own -- though India, Brazil and South Africa have reason to wonder if a Chinese-led world order would be an improvement on the current one.
The "New Development Bank" announced in Fortaleza this week marks the launch of a collective lending platform steered exclusively by the BRICS countries. With an authorized capital of $100 billion, it could lend up to $34 billion per year. It is not an understatement to say that this is a new kind of bank for a new world order. For the first time in history, infrastructure spending consistently exceeds military expenditure.