Four principles for the BRICS Bank

On the eve of the summit, organizations urge new financial institution to promote alternative development model

On the eve of the summit, organizations urge new financial institution to promote alternative development model

On the eve of the launch of the NDB (New Development Bank), scheduled to occur at the 7th Summit of the BRICS countries (Brazil, Russia, India, China and South Africa) on July 8 and 9 in Ufa, Russia, civil society organizations and social movements are urging the institution to commit to four basic principles of sustainable development and respect for human rights.

In a letter sent to the authorities of the five countries, the organizations emphasized that the NDB should promote development for all. This, they say, includes financial support for accessible, inclusive and participatory projects that respect local cultures and the environment. Furthermore, they are calling for the institution to be democratic and transparent, guaranteeing the communities impacted by the bank-financed projects access to information and the ability to influence the investments and decisions.

Click here to read the letter in full in Portuguese, English, Spanish and French.

The organizations also want the world’s newest multilateral financial institution to establish strict criteria for granting credit and mechanisms to monitor compliance and promote accountability. Moreover, they recommend that the bank should ensure that the projects do not cause harm to traditional peoples or the environment and that they promote sustainable long-term solutions.

“The existing development model in force in many emerging and developing countries is based on export-oriented, commodity driven strategies and policies. This model is socially harmful, environmentally unsustainable and has led to greater inequalities between and within countries,” reads an excerpt of the document.

See below the four principles that should be followed by the BRICS Bank to ensure a sustainable development guided by human rights:

In Brazil

After signing the agreement that created the BRICS Bank in Fortaleza, during the block’s last summit in July 2014, the bill establishing the new institution progressed quickly and without public debate through the Brazilian Congress.

The text was fast-tracked through the Lower House and then, as Legislative Bill 156/2015, proceeded to the Foreign Relations Commission of the Senate for analysis. It was approved by the senators on June 3 and enacted two days later by the president of Congress, Renan Calheiros.

During its passage through Congress, Conectas and Rebrip (Brazilian Network for the Integration of Peoples) asked for public hearings to be held in order to help develop the Brazilian vision for the new bank. Congress, however, did not hold a single hearing on the topic.