BRICS CONFERENCE

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Looking for an alternative to the “diminishing US dollar” as an exchange medium, Indian Youths called an International conference with BRICS countries and Syrian representatives on Saturday here in New Delhi.

Yuva Kranti in the proposal presented in the conference declared that the US dollar is about to collapse in the near future. So looking for an alternative to the loopholes in existing global system this conference is being called to discuss the future course of action.

In the topic of the conference Yuva Kranti put forward a question, “BRICS – A new challenge to US?” The Dollar hegemony is at diminishing level and the countries across the world are securing their future in form of regional groupism or Collective Security System (CSS). Here at this stage the BRICS which include great powers like China, Russia, Brazil and resourceful countries like India and South Africa is challenging the US.

The youth organisation has also posed a question on the role of Indian government, “what role India will play in BRICS?”

In the initial presentation Abhimanyu Kohar presented the idea of future exchange currency with the “dominating history” of US Dollar. “The idea of the conference is to look for a new alternative to the diminishing dollar hegemony which is not backed by gold or a commodity”.

The other speakers including representatives from BRICS Embassies, Indian BRICS experts, Veteran Journalists, Professors etc also put forward their idea on BRICS and the New Development Bank.

Responding to the notion, whether BRICS or NDB is a challenge to the US or existing financial system, speakers argue that the BRICS and its sponsored NDB is not a challenge but is a supplement.

Professor Varun Sahni from JNU proposed the possible strength and challenge to the BRICS countries. He also enlightened the idea of NDB and points out the required amendments in the policy and norms of the financial institution.

Excerpts from Yuva Kranti’s Proposal

After 2008 recession, USA started QE that is printing excess money. USA issued 85 billion USD every month which is more than trillion USD per year. Federal Reserve System’s idea was to increase borrowing power of people because this was provided at 0% interest rate. But American population is not interested in loans anymore because they know that this is again a bubble being created by Fed. On the other hand, other countries are also ditching the petrodollar by doing trade in their own currencies. So in near future when all these dollars will come back to USA again, there will be huge dollar crisis. At that point the world needs to have alternative system having multiple currency system backed by gold because dollar will collapse ultimately.
NDB – A supplement to existing financial system

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is BRICS new supplement to US system. NDB is an alternative to the existing American and European system. The goal of the bank is to “mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries”. Each participant country in the bank holds an equal number of shares and equal voting rights, and none of the countries will have veto power. There will be 1 million shares with a value of USD 100 000 (initially USD 500 000 shares), 20% of which will have to be directly paid in to the bank in the first 7 years after entry into force.

NDB will provide loans without any restrictions which are imposed by World Bank and IMF like Privatization of public assets, labours wage cut.

Due to these distinguishing features the NDB is looking as the future of BRICS and other developing countries.

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