New Delhi: The Asian Development Bank (ADB) does not see any threat from the proposed BRICS development bank and doesn’t see any need to change its strategy.
Two of the key members of ADB—India and China—are driving the idea of the proposed BRICS development bank, preparation for which is expected to be completed by the 2014 BRICS summit in Brazil. The other members of the grouping of developing countries are Brazil, Russia and South Africa.
The proposed bank is expected to meet the development finance needs of emerging economies and is seen as a challenge to global financial institutions such as the International Monetary Fund (IMF) and the World Bank.
Answering questions in the opening press conference at the 46th Annual meeting of ADB in New Delhi, President Takehiko Nakao said he would be happy if the BRICS bank becomes successful. “I hope we can support BRICS bank. I don’t think we have to change our business model because of (the) BRICS bank,” he said.
Nakao cautioned that development banking business is a complex one. “It requires finding good projects, monitoring implementation while protecting environment,” he said.
India is hosting the ADB annual meeting for the third time. Around 5,000 participants are expected to take part in the meeting which has “development through empowerment” as its theme.
Nakao said ADB will continue to focus on its strategy of reducing poverty in Asia while providing support for sustaining growth in middle-income countries so that they can avoid the middle-income trap.