SOUTH AFRICA
Author: Cliffe Dekker Hofmeyr
Source: www.lexology.com

For international commercial transactions the recognition and enforcement of a foreign arbitral award or a non-domestic award is important for the promotion of trade and investment amongst states. The importance thereof lies in parties to an international commercial transaction having piece of mind that an arbitral award rendered in one state against one of the parties to the transaction will be recognised and enforced by the courts of another state where enforcement is sought. This is especially important among economic groupings such as BRICS with an objective of encouraging further trade and investment among the member states of the economic block.

This objective is frustrated:

• when businesses from BRICS states are required to comply with additional domestic law requirements (of the specific BRICS state) for the recognition and enforcement of a foreign arbitral award in addition to the requirements of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention); or
• when restrictions are put in place by a BRICS state to the recognition and enforcement of a foreign arbitral award made in another BRICS state.

This practice does not foster trade and investment amongst BRICS states, as it creates an unfair bargaining power in respect of certain commercial issues (governing law, seat of arbitration and so on) regulated in commercial transactions and potentially increases the transaction cost for one of the parties.

Article V of the New York Convention sets out an exhaustive list of grounds contracting states may rely on to refuse the recognition and enforcement of a foreign arbitral award. Contracting states may only refuse the recognition and enforcement of a foreign arbitral award on the grounds set out in the New York Convention, unless a contracting state when signing, ratifying or acceding to the New York Convention restricted the application thereof by making a specific reservation. The New York Convention allows for two types of reservations by contracting states.

• The first reservation, known as the "reciprocity reservation" allows states to apply the New York Convention only to awards made in the territory of another contracting state. Thus, only foreign arbitral awards or non-domestic awards made in the territory of a contracting states will be recognised and enforced by such state imposing a reciprocity reservation.
• The second reservation, known as "commercial reservations" allows a state to apply the New York Convention only to "differences arising out of legal relationships, whether contractual or not, which are considered as commercial under the national law of the State making such declaration". Thus only matters considered as commercial under the law of a state were enforcement is sought will be enforced. Any matter not deemed "commercial" will be not be enforceable.

All five BRICS states (Brazil, Russia, India, China and South Africa) acceded to the New York Convention and thus one would expect that a foreign arbitral award made in any BRICS state would be recognised and enforced in another BRICS state, without the risk of such award being unenforceable. However, international commercial transactions between South Africa and India are faced with the following real risks:

• any arbitration clause governed by South African law (pursuant to a dispute) in terms of an international commercial transaction with an Indian counterparty will not be recognised by Indian courts; and
• any foreign arbitral award rendered in South Africa will not be recognised and enforced by the Indian courts.

India has imposed a specific reservation against South Africa in respect of the recognition and enforcement of foreign arbitral awards made in South Africa. The Official Government Gazette of India does not indicate that South Africa ratified or acceded to the New York Convention, despite South Africa having acceded to the Convention on 3 May 1976. As a result of this reciprocity reservation by India, any arbitral award rendered in South Africa or arbitration clause submitting a dispute to arbitration in South Africa will be unenforceable in India. In the case of Swiss Singapore Overseas Enterprise (Pty) Ltd v M/V Africa Trader, the High Court of Gujarat, Indian, (23/2005) the court refused to refer parties to arbitration in South Africa on the grounds that the Indian Official Gazette did not mention South Africa's accession to the New York Convention.

This approach frustrates the promotion of trade and investment between these two BRICS states and increases the transactional cost of South African businesses contracting with Indian businesses. South African commercial parties will be materially prejudiced during commercial negotiations due to the automatic exclusion of South Africa as a seat of arbitration flowing from a commercial transaction with an Indian national (or any other national which has significant assets in India for purpose of securing performance). This goes against the Indian governments initiatives to develop an international arbitration system to serve BRICS nations as highlighted during the Conference on International Arbitration in BRICS: Challenges, Opportunities and Road Ahead on 27 August 2016 held in New Delhi.

The South Africa government must make a concerted effort to persuade the Ministry of Law and Justice of India to declare, through an official notification in India's Official Gazette, that it recognises the Republic of South Africa to be a territory to which the New York Convention applies, for the purpose of recognition and enforcement of foreign arbitral awards. This is very important for, amongst other factors, (a) South Africa's target to increase bilateral trade with India from the current $10 billion to $20 billion by 2018 and (b) the promotion of South Africa as a model law jurisdiction for international commercial arbitration through the planned adoption of an International Arbitration Bill.

SOUTH AFRICA
Source: www.iol.co.za

Cape Town - Sekunjalo Group and Independent Media executive chairman Dr Iqbal Survé leads the SA Brics Business Council meeting in Delhi, India, to strengthen business links between South Africa and the Brics bloc. The SA Brics Business Council arrived in New Delhi on Thursday to attend the mid-term meeting of Brics representatives with their international counterparts.

Brics is an association of five emerging economies; Brazil, Russia, India, China and South Africa. Half of the world's population, almost four billion people, live in these five countries. Collectively. Brics has a GDP of about $37 trillion.

Newly appointed chairman of the South African chapter of the Brics Business Council, Survé said the mid-term meeting was an important event in the run-up to the Brics Summit which will be hosted by China, in the city of Xiamen in September. The summit will be hosted in South Africa next year.

Survé said he intended to strengthen the multilateral relationships of the South African business community with the Brics countries to the mutual benefit for each country.

The Brics Business Council ensures continuous interaction between the business communities and governments of Brics countries, identifying problems, bottlenecks and solutions to facilitate trade and foster investment relationships.

Brics Business Council members are appointed by the South African government. Commenting on his appointment as chairman, Survé said: "The Brics Business Council members are first and foremost ambassadors for the country.

"We are there to ensure that all South Africans benefit as the global economy moves rapidly towards the east and south.

"In the age of Trump protectionism and Brexit, we have to strengthen our ties with business in the East especially China and India, whose economies are expected to be number one and number three in the world by 2030, with a GDP of $35trillion and $16 trillion respectively," he said.

Survé is a founding member of the Brics Business Council, and said he would build on the work done by his predecessors, Patrice Motsepe and, most recently, Brian Molefe.

The SA Brics Business Council members accompanying Survé include Siyabonga Gama, Transnet chief executive, and Danisa Baloyi, Black Business Council president, who are new appointments, Khanyisile Kweyama, of Business Unity South Africa, and Stavros Nicolaou, of Aspen Pharmacare, who retain their positions as members of the council.

The council will work closely with ministers in various clusters and business sectors including Finance, Trade and Industry, International Relations and Co-operation, Science and Technology, and Education.

Survé said: "It is indeed an honour to lead the South African Brics Business Council and to represent my country and in addition, I will work with some of the best business leaders in the country and in the various Brics business councils. It is also an opportunity to enable our country to achieve the goals of inclusive growth and economic transformation.

"I am passionate about job creation, education, skills development and technology, and I hope that in this new role, I will be able to ensure that Brics benefits the most marginalised South Africans and Africans."

The upcoming Brics Business Council mid-term meeting will be taking stock of progress in deregulation, manufacturing, infrastructure, agri-business, skills development, financial services and energy and the green economy, and prepare for the September summit.

Survé said the business bouncil had a huge role to play in economic development on all fronts.

"It is an interesting development that China is flying the flag for globalisation at a time when the United States President Donald Trump is taking a more protectionist stance.This opens up many opportunities, not only for South Africa, but for the continent.

"As South Africans, we have to make sure that we remain relevant in the global economic order and that we have access to the global market, and access to capital," he said, adding it was vital to ensure that Africans benefit from the New Development Bank. The bank was established by the Brics to support public or private projects, by supplying loans, guarantees and equity participation.

"The bank must not just benefit countries in Asia, we want them to build dams, roads, power stations and railway lines in Africa," Survé said.

Brics brings many opportunities to South Africa as the country needs more foreign-direct investment.

"South Africa spends more than 40% (R153 billion) of the budget servicing debt, and if we don't have foreign-direct investment, it will lead to greater unemployment and social instability. That is why the business council is crucial. It is there to ensure as a country, we can channel FDI from the rest of the world, but mostly from Brazil, Russian, India and China.

"It is noteworthy that all five countries have different ideals, economic policies and politics, yet we know for economic growth, we have to work together to ensure our people benefit economically. Included in the benefits must be skilling and reskilling in preparation for the fourth industrial revolution, where biological, physical and digital worlds meld," said Survé.

He added that Brics must represent a win-win for all its members.

United Kingdom
Source: zionistreport.com

Sputnik is controlled by the Kremlin and what they are doing is simply telling us what is coming. They will collapse the dollar and Communism will take control of our economy even more than it has already. Nothing new under the sun. No one can say they did not warn us!

Having analyzed Beijing's idea to bring Pakistan, Bangladesh, Iran, Nigeria, South Korea, Mexico, Turkey, Indonesia, the Philippines and Vietnam into the BRICS group, consisting of Brazil, Russia, India, China and South Africa, Zelaia, the president of Ekai Center consulting company, concluded that this could come as a response to Washington's decision to pull out from the Trans-Pacific Partnership agreement

"The dissolution of the TPP, established to maintain US domination in Asia, created a void BRICS can now move in to fill and play a bigger role among the emerging economies," Zelaia said in an interview with Sputnik Mundo.
He added that BRICS, which until now served as "a symbolical counterbalance to the West," could now become "a leader of the global economic order" and could eventually dominate the global economy.

"The BRICS countries use a development model that, apart from trade, also prioritizes strategic investments into future progress. Most of the new inclusions are part of the New Silk Road project of Eurasian investments in infrastructure and communications," Adrian Zelaia noted.

"This infrastructure would kick-start a Chinese model of development where money lost by one country does not necessarily make the other country richer. Instead, it encourages everyone to come up with new ideas and generate projects that benefit all," he added.

It looks like the proposed enlargement of the five-nation BRICS will not be an easy ride though. India, for one, is wary of the inclusion of new countries, some of which share common borders with India and have strained relations with New Delhi.

"This could prove a serious hurdle now that China's economic might makes generating new partnerships easy, while India is virtually unable to look for potential candidates among its allies. Which means that an ideal option will be hard to find," Adrian Zelaia said in conclusion.

The concept of BRICS Plus within BRICS, the brainchild of Chinese Foreign Minister Wang Yi, has put India on the back foot, primarily since the Plus grouping could mean an invite for rival Pakistan into the five-nation group.

CANADA
Author: Prof. Patrick Bond
Source: www.globalresearch.ca

Will the Brazil-Russia-India-China-South Africa (BRICS) bloc ever really challenge the world financial order? The BRICS New Development Bank (NDB) leadership is meeting in New Delhi from 31 March to 2 April with a degree of fanfare unmatched by accomplishments. It is a good moment to assess progress since the BRICS Summit in 2013 when rumour had it that the then host city of Durban would also be the NDB's home base. (It ended up in Shanghai, launched in 2015.)

BRICS leaders often state their vision of establishing alternatives to the World Bank and International Monetary Fund. Indeed the NDB leadership began with environmentally-oriented loans last year, and in 2017 wants to add $3 billion in new credits.

But looked at from the South African vantagepoint, questions immediately arise about key personnel, as well as the willingness of the only local NDB borrower so far – the electricity parastatal Eskom – to support renewable energy, and perhaps most importantly whether the country and the continent can afford more expensive hard-currency loans.

Greenwashing finance as Africa loses IMF power

Why green loans? The original NDB designers were two former World Bank chief economists, Joe Stiglitz and Nick Stern. Although their public endorsements of the NDB stressed sustainable development and climate change, in private Stern offered a different rationale during a 2013 conference of the elite British Academy (which he chairs):

"If you have a development bank that is part of a [major business] deal then it makes it more difficult for governments to be unreliable."

Stern asked,

"are there any press here, by the way? OK, so this bit's off the record. We started to move the idea of a BRICS-led development bank for those two reasons. Coupled with the idea that the rich countries would not let the balance sheets of the World Bank and some of the regional development banks expand very much, and they would not allow their share in those banks to be diluted."

While this is true, the BRICS gained substantial IMF voting power increases in the 2015 restructuring (e.g. China up 37%, India 23%, Brazil 11% and Russia 8%), but with negligible United States or European dilution. Instead, the rising BRICS shares were as a result of Nigeria and Venezuela losing 41% of their vote, along with Libya at -39%, Morocco -27%, Gabon -26%, Algeria -26%, Namibia -26%, Cameroon -23%, Mauritius -21% and even South Africa lost 21%.

Four BRIC countries stood on African and Latin American heads to get better executive director seats at the IMF table. When they got there, the BRICS directors approved the reappointment of Christine Lagarde in 2016 and after she was convicted on a $430 million corruption charge last December, the IMF directors unanimously endorsed her continued employment.

The NDB's first loans did boost environmentally-oriented projects, as $300 million went to Brazil, $81 million to China, $250 million to India and $180 million to SA, the latter to connect renewable Independent Power Producer generators to the main grid. But these processes are accomplished with mostly local-currency inputs, hence the US$ loans were inappropriate. Like the other multilaterals, NDB repayments are in US dollars, which adversely affect the borrower's balance of payments, although the NDB has started fund-raising from yuan and rupee markets so this may eventually change.

But worse, Eskom's two most recent leaders, Brian Molefe and Matshela Koko, simultaneously announced that they wanted nothing more to do with renewable energy. A massive battle over renewables was only resolved a month ago when Finance Minister Pravin Gordhan's Budget Statement recommitted to the IPP contracts. (Koko may well have to step down after last week's conflict-of-interest revelations involving a scandalous $100 million tender suspiciously won by his stepdaughter's company.)

In that budget, Gordhan refused Eskom further nuclear energy financing, beyond an initial $15 million: a tiny downpayment on the in-principle reactor purchase agreement that President Jacob Zuma had made to Moscow-based Rosatom, with anticipated costs of $50-100 billion. The principle supplier of raw inputs to the nukes – if they are built – will be Oakbay, a uranium (and coal) company owned by the notorious Gupta brothers.

Gupta gyrations

This week the Guptas are in court fighting Gordhan over his failure to reverse the main SA commercial banks' boycott of Oakbay and other Gupta-owned firms. This boycott is the widely understood reason that Gordhan was recalled from a UK-US investment trip on Tuesday morning: to be fired.

For the NDB, such turmoil is extremely important because SA's Governor to the NDB is Gordhan. And the oft-rumoured ascension to the Treasury by Molefe is vital in part because he was SA's BRICS Business Council leader until recently – following his own humiliating resignation as Eskom chief executive last November. That was the result of the Public Protector's "State of Capture" report revealing influence over Molefe by the Guptas.

After he (incorrectly) claimed that the Gupta's luxurious Saxonwold neighbourhood contained a shebeen (pub) that might explain his regular presence there, Molefe's credibility was utterly destroyed. Nevertheless, in January, Molefe was appointed to parliament amidst fresh controversies over Gupta meddling.

Just before the Eskom resignation, Molefe made an articulate appeal for a replacement of "the current 'casino' financial system or 'law of the jungle' with a project that expressly promotes the common good among nations, provides credit for high-technology development projects, on youth education and training and meets the growth challenges of the future."

Molefe bragged that

"BRICS and its allies are taking bold corrective measures by building a world system based on real value and to create a system capable of fundamentally shaping socio-economic growth and development. There have been some significant steps taken, in particular the launch of the NDB, which has already started funding key projects."

Yet these are the very 'key projects' – renewable energy – that Molefe was sabotaging at that time, suggesting his NDB pronouncements simply cannot be taken seriously.

The NDB website itself observes

"a need for Multilateral Development Banks to reinvent themselves" on the one hand, but on the other, its president KV Kamath last September signed a deal with the World Bank for "co-financing of projects; facilitating knowledge exchange… and facilitating secondments and staff exchanges."

NDB personnel

In contrast to Molefe, two other executives from SA receive regular praise. Ironically, SA's NDB Director is former Reserve Bank Governor (1999-2009) Tito Mboweni, who had slammed the NDB as "very costly" in 2013. Upon accepting the NDB directorship two years later (as the only one of the five not employed by a BRICS state), he promptly declared that nuclear energy financing "falls squarely within the mandate of the NDB."

Mboweni is International Advisor to Goldman Sachs. That should have been an embarrassment in January 2016 when according to financial journalists, the bank "identified shorting the rand as one of its top trades for this year due to falling commodity prices and SA's current account deficit." At that point the SA currency was rapidly pushed down to its historic low of R18/$. (It since recovered to R12/$ after the speculative wave ebbed, but recent Treasury turmoil just drove it below R13/$.)

SA's NDB Vice President and Chief Financial Officer, Leslie Maasdorp, also worked at Goldman Sachs (and Barclays and Bank of America), led Pretoria's failed privatisation strategy and was an unsuccessful, short-lived chief executive of privatised education firm AdvTech.

One other NDB job remains open: the much-advertised head of the NDB Africa Regional Centre in Johannesburg. In December 2015, Zuma announced that his 2014-15 finance minister, Nhlanhla Nene, would urgently take that job. It appeared to be a fig-leaf appointment, so as to replace the fiscally-conservative Nene with a man – Desmond van Rooyen – considered close to the Guptas.

This caused such an uproar that not only did three top white bankers communicate to Zuma that he must reverse course, but also a "critical intervention" (according to the country's leading business writer, Peter Bruce) was made by Beijing's owners of the Johannesburg-based Standard Bank, leading to van Rooyen's firing within four days, and Gordhan's appointment.

Zuma, acting as clumsily as usual, never had a guarantee of Nene's job from the NDB officials, who subsequently stalled the Africa Regional Centre's launch. It was originally scheduled for March 2016. Then last September, the BRICS Business Council website declared that the new Centre's Johannesburg headquarters would be ready by November. (The Africa Regional Centre is still to be launched, now more than a year late.)

The location was 'well received' in the rest of Africa, according to the Business Council, because the NDB will lend to other countries, not just the BRICS. Leading Ugandan official Louis Kasekende argued that Africa should "have access to credit as quickly as possible at low rates," especially to "reduce the timeframe of projects finalisation and approval process."

Inappropriate finance for Africa

Reducing the timeframe would logically mean reducing attention to environmental and social dimensions (the critique of development banks and the NDB most often made by civil society). But the larger problem is the exceptionally high debt burden African countries now shoulder, following the world crash of commodity prices from 2011-15. The NDB would offer Africa only hard-currency loans that are extremely expensive when currencies crash.

As the Financial Times recently reported,

"One factor Africa's indebted countries have in common is sharp devaluations of their currencies against the US dollar. Since mid-2014, the Mozambique metical is down 56 per cent against the dollar, the Angolan kwanza 41 per cent and the Ghanaian cedi 36 per cent, for example."

In 2011, 6.3 South African rand bought a US dollar; today it costs twice as much.

After multilateral lenders' and G7 debt relief in 2006, the foreign debt of SubSaharan Africa was cut by $100 billion, to $200 billion. But thanks mainly to Chinese state loans (associated with the extractive industries), it is now up again above $400 billion, with countries like Angola, Chad and Ghana paying more than 30% of their governments' revenues on debt servicing.

South Africa's own payment obligations to the BRICS NDB will become onerous as well. To capitalise the NDB, $680 million was allocated by Nene in 2015-16, rising steadily to $3.2 billion this year and $6.2 billion by 2020. The NDB's capital base, which is notionally $100 billion, is shared equally by all five (unlike the $100 billion Contingent Reserve Arrangement which treats South Africa the way the IMF does, with a much smaller share of the quota: $10 billion). Other multilateral financiers cost South Africa $19.2 billion in 'provisions' made in the current budget (i.e. to be paid when called for by the financier); indeed only the IMF capital subscription will be more costly ($6.4 billion this year, rising to $7.2 billion in 2020) than the NDB.

Paying these substantial subscriptions is onerous, given that they contribute to enforcing the neo-liberal ideology that continues oppressing the continent's people. But moreover, South Africa also faces a terrifying rise in its own foreign debt, which according to the March 2017 SA Reserve Bank Quarterly Bulletin had risen to $143 billion in September 2016, a $10.6 billion rise over the prior three months. At 50% of GDP, this is the highest debt burden in the country's modern history; the only prior default was in 1985 when the ratio was 40%.

The main reason for soaring foreign debt is that multinational corporations are taking SA-sourced profits and dividends to London and other offshore financial headquarters, causing a persistent current account deficit. Indeed, as Chinese lenders, Indian steelmakers, other BRICS mining houses and the Gupta family externalise their own funding flows, the tragic irony of the NDB emerges.

In short, the unnecessary NDB loans to Eskom contribute to more BRIC power over the one African country, South Africa, that once had the potential to stand up and fight for justice. But perhaps just like Molefe in the Gupta's lush Johannesburg suburb, that liberatory rhetirc might just have been Saxonwold shebeen talk.

Meanwhile in Delhi, the NDB annual meeting will be preceded by a day-long critique by the BRICS People's Forum at the Indian Social Institute on March 30. It's appropriate to conclude with their similar misgivings:

"the Bank is shrouded under a veil of secrecy. The website of the Bank lacks information about its activities to the extent that more than official records, one has to rely on secondary and tertiary sources of information… the NDB is yet to draft any such [socio-economic and environmental] operational guidelines and redressal… communities may face threats of displacement, evictions, ecological destruction, loss of livelihoods, and severe curtailment of basic rights to life. These issues have recurred for decades due to projects funded by other multilateral development banks. Moreover, as a co-financier with other development institutions, the intensity of NDB's seriousness on the objectives of promoting transparency, accountability and probity stands questioned."

Patrick Bond is professor of political economy at the Wits University School of Governance in Johannesburg and co-editor of BRICS: An anti-capitalist critique (published by Haymarket, Pluto, Jacana and Aakar).

China
Source: www.stats.gov.cn

In March 2017, China's manufacturing purchasing managers index (PMI) was 51.8 percent, rising for two consecutive months, an increase of 0.2 percentage points over last month, and the manufacturing industry continued to keep a steady and positive trend.

In view of the sizes of enterprises, the PMI of large-sized enterprises was 53.3 percent, remained at the same level over last month, and continued to maintain steady expansion; that of medium-sized enterprises was 50.4 percent, decreased 0.1 percentage point over last month, and continued the expansion trend; that of small-sized enterprises was 48.6 percent, increased 2.2 percentage points over last month, and the contraction narrowed obviously.

Among the five sub-indices composing PMI, the production index, new orders index and supplier delivery time index were higher than the threshold. The employed person index was at the threshold. The main raw materials inventory index was lower than the threshold.

Production index was 54.2 percent, an increase of 0.5 percentage points month-on-month, and positioned in the expansion range, indicating that the growth of manufacturing production continued to accelerate.

New orders index was 53.3 percent, increased 0.3 percentage points month-on-month, and was higher than the threshold, showing that the manufacturing market demand kept growing.

Employed person index was 50.0 percent, increased 0.3 percentage points month-on-month, and was at the threshold, indicating that the labor employment of manufacturing enterprises had no obvious change from the previous month.

Main raw materials inventory index was 48.3 percent, decreased 0.3 percentage points month-on-month, and continued to be below the threshold, indicating that the manufacturing main raw material inventory continued to decrease.

Supplier delivery time index was 50.3 percent, a decrease of 0.2 percentage points over last month, but still stayed above the threshold, indicating that the delivery time of manufacturing raw material suppliers accelerated slightly.

China
Source: www.ndb.int

On 31 March 2017, Mr. Xiao Jie, the Minister of Finance of China and Mr. K.V.Kamath, the President of the NDB met in New Delhi, India and discussed general progress of the Bank, the participation of the Bank in the forthcoming BRICS Summit in Xiamen and the future development of the NDB. This meeting took place on the sidelines of the NDB Second Annual Meeting and was attended by the Vice Minister of Finance of China Mr. Shi Yaobin and NDB Vice Presidents Mr. Paulo Nogueira Batista Jr., Mr. Vladimir Kazbekov, Mr. Xian Zhu and Mr. Leslie Maasdorp.

The New Development Bank was created by the BRICS countries with an objective of financing infrastructure and sustainable development projects in its members.

China
Source: www.ndb.int

The Board of Governors (BoG) of the New Development Bank (NDB) approved today, in principle, the Bank's General Strategy document for 2017-2021. Governors have also approved the document on Terms, Conditions and Procedures for the Admission of New Members.

The Strategy document will be further worked on, in order to incorporate some proposals made by Governors and is expected to be made public no later than 1 June 2017.

The document on Terms, Conditions and Procedures for the Admission of New Members will soon be made public on the Bank's website. Governors have also decided that the criteria for expansion of membership will be worked out and finalized for approval by the BoG.

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players. The NDB intends to be fast, flexible and efficient, without sacrificing quality. The Bank will use various financial instruments to efficiently meet the demands of member states and clients.

China
Source: www.chinadaily.com.cn

A total of 58 financial projects were unveiled as the soon-to-be winners of the 2016 Shanghai Financial Innovation Award given by the city's financial service office on March 27.

The projects cover a wide range of areas including financial products specially designed for China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ), as well as products concerned with internet finance, financial technology, and green finance.

For instance, Shanghai FTZ branch of Industrial and Commercial Bank of China developed an e-commerce smart financial service.

Furthermore, a small loan company affiliated to Dalian-based Wanda Group launched a credit loan application for consumers to receive loans in a swift and straightforward manner. The maximum loan made available by the scheme is 50,000 yuan ($7270).

Alipay, the e-wallet run by e-commerce giant Alibaba's financial arm Ant Financial, provided a facial recognition feature that allows users to confirm their identity online.

The BRICS New Development Bank issued a 3 billion yuan green financial bond in July 2016, which was the first of its kind issued by a China-based international financial institution.

Projects launched by banking and insurance institutions formed a large proportion of those placed on the list with 16 created by banking institutions and 11 by insurance firms.

The Shanghai Financial Innovation Award, which was first launched in 2011, is expected to encourage local financial institutions to pursue innovative measures and schemes to boost the development of the city's financial sector.

It is also considered a significant step to create a better financial environment and to help Shanghai attain its goal of becoming an international financial center.

USA
Author: Ira Dugal
Source: www.bloombergquint.com

The Shanghai-headquartered BRICS lender, New Development Bank (NDB), will look to raise funds through a masala bond issue in the second half of the year, KV Kamath, president of the bank, told BloombergQuint in an interview.

"Last year, we raised money in the renminbi bond market through an onshore green bond. That was roughly $500 million. This year, in the second half of the year, we will look at doing a masala bond issue," said Kamath. The size of the issue could be between $300-500 million, he added.

The NDB prefers to raise local currency funds in the overseas market because of the tremendous volatility in currency markets, Kamath explained, while adding that offshore issues are preferred over onshore ones to avoid the risk of crowding out local borrowers.

The bank signed its first project in India on Thursday and will lend $350 million to a Madhya Pradesh district roads project. The bank lent out $1.5 billion in 2016 and is targeting to lend approximately $2.5 billion in 2017.

The multilateral development bank was established by the five BRICS (Brazil, Russia, India, China, South Africa) economies to challenge the dominance of developed countries in providing international finance. The initial authorised capital of the bank was $100 billion, divided in one million shares of $100,000 each. This was equally distributed among the founding members, according to information on the BRICS website.

In India, the NDB will focus on sustainable infrastructure projects in keeping with its mandate. While the initial set of investments will be made in sovereign guaranteed projects, by the end of the year the NDB may also look at lending to private projects.

The NDB has also had conversations with the government on a possible investment in the National Infrastructure Investment Fund (NIIF) - a government of India fund that hopes to combine sovereign and private funds to develop local infrastructure.

"We have had several discussions with them. ... I would encourage the setting up of the NIIF as it has been conceptualised by getting in partners. It will be very interested to look at what are the opportunities," said Kamath.

Kamath, a career banker who headed leading Indian private sector bank, ICICI Bank Ltd., for many years, was appointed as the first president of the NDB in 2015. In response to a question on financial sector stress in India, Kamath said that while the size of the problem has been recognised, resolution and availability of capital remains a challenge.

"That (resolution) has to be done at speed. Because you keep an asset which is productive for too long, you are doing more harm. So you need to put that asset back on track," said Kamath. I would think that whatever haircut needs to be taken has already been provided for by the banks, said Kamath adding that in that case not much incremental provisioning will be needed.

South Africa
Author: John Baobab
Source: bricsbusinesscouncil.co.za

The South African current account deficit on the balance of payments narrowed to 5.1 per cent of gross domestic product (GDP) on a seasonally adjusted annualized basis in the fourth quarter 2016 from a revised 3.8 per cent (previously 4.1 per cent) in the third quarter 2016, the South African Reserve Bank (SARB) said in its latest Quarterly Bulletin.

The rand has weakened considerably over the past few years versus the US dollar as a current account deficit above 3 per cent is seen as unsustainable reaching a record worst level in January 2016 before recovering during the course of 2016.

At press time, the dollar had gained 1.02 per cent on Tuesday to reach 12.87 rand.

The consensus forecast of economists was for a narrowing in the current account deficit to 3.4 per cent in the fourth quarter based on the monthly foreign trade data.

On annual basis, the current account deficit narrowed to 3.3 per cent of GDP in 2016 from 4.4 per cent in 2015, 5.3 per cent in 2014 and 5.9 per cent in 2013. It was only 1.5 per cent in 2010.

A current account deficit implies that the country's domestic production is unable to keep pace with domestic demand, so South Africa's real GDP growth rate as measured from the production side has slipped from 3.3 per cent in 2011 to 2.2 per cent in 2013, 2.5 per cent in 2012, 1.7 per cent in 2014, 1.3 per cent in 2015 and 0.3 per cent in 2016.

South Africa as a small open economy has a large exposure to its foreign trade sector with exports of goods and services accounting for 30.3 per cent of GDP in 2016, while imports have a 30.2 per cent share of GDP. In the recession year of 2009, exports only accounted for 27.9 per cent of GDP, while imports had a 27.5 per cent share.

USA
Author: Vǫlubrjótr
Source: politicalvelcraft.org

Trading in local currencies has already started — and lays the groundwork for facilitating BRICS transactions in gold

Recent progress made in streamlining trade in local currencies has brought Moscow and Beijing closer to creating a financial architecture that could facilitate transactions in gold.

As we reported last week, Moscow and Beijing took another step towards de-dollarization with the opening of a yuan clearing bank in Russia. And earlier this month Russia's Central Bank opened its first-ever foreign branch in Beijing to allow for better communication between Russian and Chinese financial authorities.

• The Dollar Is Coming Home To Die: Dumped By The World
• Russia's Landmark Speech: New Centers Of Economic Power ~ As China, Japan, Belgium, Switzerland, & Saudi Arabia Dump The Rothschild Fiat U.S. Dollar.

• 3/2017 India World's Largest Importer Of Gold Surges 82%: India Shrugs Off IMF Modi Digital Scheme

According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitions plan — using gold to make transactions:

1. The clearing center is one of a range of measures the People's Bank of China and the Russian Central Bank have been looking at to deepen their co-operation. […]
2. One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal.
3. On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.

The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS:

"BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets."

Future plans to facilitate transactions between Moscow and Beijing in gold would certainly explain why the two countries are leading gold producers and buyers. Creating a BRICS "gold marketplace" would be an excellent way of bypassing the dollar while also using a "currency" that could be easily recycled for trade with other member nations.

And while trading in gold won't happen overnight, BRICS states have already moved towards creating a "new financial architecture" that "tackles the dominance of the U.S. dollar in global finance":

• Shanghai Shock April 19, 2016: Yuan Based Gold Standard Established
• China Locked In The Zionist Controlled Dollar Death By Launching Their Own Gold Price Exchange

The initiatives taken by the member nations of BRICs (Brazil, Russia, India, China, and South Africa) to set up a new financial architecture at its eighth summit held in October 2016 in India have recently been under the spotlight.

In order to avoid the International Monetary Fund (IMF) type of loan conditionalities and tackle the dominance of the United States (US) dollar in global finance, the new institutions set up by the BRICs are expected to provide a much needed change in the global financial architecture.

These institutions include the New Development Bank (NDB), the BRICS-led Contingency Reserve Fund (CRF), and the Asian Infrastructure Investment Bank (AIIB).

• China's AIIB To Radically Change The World Competing Against Rothschild's IMF.

As one financial expert noted recently:

In recent years, the BRICS countries – Brazil, Russia, India, China and South Africa – have been taking small steps to reduce the primacy of the dollar in international trade. China has been leading this effort in recent years.

I recently came across this headline published by the South China Morning Post: "Moscow and Beijing join forces to bypass U.S. dollar in world money market." You see, Russia and China have been working towards stronger economic ties for years.

The latest sign of this cooperation happened March 16, when the Central Bank of Russia opened its first overseas office in Beijing. The local news called this "a small step forward in forging a Beijing-Moscow alliance to bypass the U.S. dollar in the global monetary system."

Trading in yuan is just the first step.

There are much bigger plans in the works.

[FYI: Genghis Khan ~ The Mongol Empire:

August 21, 1264 Kublai Khan becomes the Great Khan.

After a protracted civil war, Ariqboqe surrenders to Kublai Khan at Shangdu. This solidifies Kublai Khan's power and allows him to once again begin campaigns of conquest. He finally defeats the Song Dynasty in southern China and puts his own regime in place, called the Yuan, which makes the Mongols the first non-Chinese people to conquer all of China. "

The word "yuan" means "origin of the universe."

1368 The Ming Dynasty reclaims China and the Mongol Empire ends.

After Kublai Khan, the Mongols disintegrate into competing entities and lose influence, in part due to the outbreak of the Black Death. In 1368, the Ming Dynasty overthrows the Yuan, the Mongols' ruling power, thus signifying the end of the empire.]

USA
Source: www.bostonprwire.com

BRICS denotes a grouping of five emerging economies of the world that are Brazil, Russia, India, China and South Africa. As these five countries are showing a positive economic outlook and strong potential for growth, they are the obvious choice as being the most sought after and attractive tourist destinations, both inbound and outbound. A rising affluent and middle class in all these five countries, especially China and India holds a great potential for the development of tourism in this bloc of countries.

BRICS Tourism Spend Analytics: Drivers and Restraints

Sound economic fundamentals and rising economic prosperity of BRICS nations is one of the key driving factors for the development of tourism in this bloc. There is a rise in disposable income in these countries and a new affluent middle class has emerged in these countries that spends greatly on tourism and leisure. Especially, countries such as China and India are leading the world in terms of outbound tourism and are showing promising growth even in the inbound tourism sector. However, external factors such as terrorism may make a dent in the inflow of tourists in this bloc of nations. Also, the tourist infrastructure in countries such as India is still developing and may not be developed as per the desired levels. This may act as a restraint in the development of tourism in BRICS. However, tourism being an important sector of the economy of BRICS, all the concerned governments are encouraging the development of tourist infrastructure and spending on the development of adequate facilities for the international travellers.

Request Report Sample@ http://www.futuremarketinsights.com/reports/sample/rep-br-2985

BRICS Tourism Spend Analytics: Key Statistics

As per the data provided by the World Travel and Tourism Council, the direct share of travel and tourism to the India's GDP was INR 2668.3 Bn in the year 2015, which comprised 2.0% of the total GDP of India. This is forecasted to increase by 7.1% in the year 2016 and is projected to rise by 7.9% per annum during the forecast period of 2016-2026 and reach a figure of INR 6115.5 Bn in the year 2026, and will comprise 2.4% of the total GDP.

In the year 2015, visitor exports in India generated INR 1249.3 Bn, which comprised 4.2% of the share of the total exports. This is forecast to grow by 5.3% in the year 2016, and is projected to grow by 7.2% per annum, reaching a figure of INR 2625.6 Bn in the year 2026, which will comprise 3.8% of the total exports of India.

As per the data provided by the World Travel and Tourism Council, travel and tourism contributed BRL 190.5 Bn to the Brazilian GDP in the year 2015 that comprised 3.3% of the entire GDP of Brazil. This is forecast to fall by 0.9% in the year 2016 and is projected to rise by 2.9% per annum during the forecast period of 2016-2026 and reach a figure of BRL 251.8 Bn in the year 2026, and will comprise 3.7% of the total GDP.

In the year 2015, visitor exports in Brazil generated BRL 20.4 Bn, which comprised 2.7% of the share of total exports. This is forecast to grow by 8.2% in 2016, reaching a figure of BRL 47.3 Bn in the year 2026, which will comprise 3.5% of total exports of Brazil.

According to World Travel and Tourism Council data, the share of travel and tourism to Chinese GDP was CNY 1407.9 Bn in the year 2015 that comprised 2.1% of the total GDP of China. This is forecast to rise by 6.1% in the year 2016, and is projected to grow by 7.4% per annum during the forecast period of 2016-2026 and reach a figure of CNY 3064.3 Bn in the year 2026, and will comprise 2.6% of the total GDP.

In the year 2015, visitor exports in China generated CNY 384.6 Bn, which comprised 2.6% of the share of total exports. This is forecast to grow by 2.1% in 2016, reaching a figure of CNY 404.2 Bn in the year 2026, which will comprise 1.9% of total exports of China.

Request For TOC@ http://www.futuremarketinsights.com/toc/rep-br-2985

As per the World Travel and Tourism Council data, the share of travel and tourism to Russian GDP was RUB 1106.3 Bn in the year 2015 that comprised 1.5% of total GDP of Russia. This is forecast to rise by 1.5% in the year 2016, and is projected to grow by 3.4% per annum during the forecast period of 2016-2026 and reach a figure of RUB 1574.1 Bn, and will comprise 1.8% of the total GDP.

In the year 2015, visitor exports in Russia generated RUB 826.0 Bn, which comprised 3.5% of the share of total exports. This is forecast to grow by 6.4% in 2016, reaching a figure of RUB 1592.3 Bn in the year 2026, which will comprise 6.1% of total exports of Russia.

According to the data provided by World Travel and Tourism Council, the share of travel and tourism to South African GDP was ZAR 118.6 Bn in the yeah Ar 2015 that comprised 3.0% of the total GDP of South Africa. This is forecast to rise by 3.9% in the year 2016, and is projected to grow by 3.8% per annum during the forecast period of 2016-2026 and reach a figure of ZAR 178.3 Bn, and will comprise 3.4% of the total GDP.

In the year 2015, visitor exports in South Africa generated ZAR 115.0 Bn, which comprised 9.1% of the share of total exports. This is forecast to grow by 5.1% in 2016, reaching a figure of ZAR 211.6 Bn in the year 2026, which will comprise 11.8% of total exports of South Africa.

This comprehensive report equips readers with lucid information and analysis on the sector. Future Market Insights' experienced travel and tourism analysts bring to you accurate and unbiased information to help you make crucial decisions with confidence.

The report offers a 360° view – bringing to the fore key drivers, restraints, opportunities, and challenges prevailing in the sector. To offer readers actionable insights, detailed information on historical trends, current scenario, and future projections is provided in the report.

The report specifically focusses on the leading companies operating in this sector, highlighting their key developmental strategies. A holistic analysis of the leading players is highlighted to help decision makers understand the overall competitive landscape.

Malaysia
Author: Shakir Husain
Source: bernama.com

NEW DELHI, March 31 (Bernama) -- China-based New Development Bank will give US$350 million for developing roads in India in its first project funding in the country.

The loan agreement was signed on Thursday in New Delhi between the Indian government and the Shanghai-headquartered bank.

This is the first financing facility in India offered by the bank, which was launched in July 2015 by Brazil, Russia, India, China and South Africa (BRICS) to address their infrastructure funding gaps without depending on Western-dominated institutions.

India would use the loan for upgrading and building 1,500 kilometres of roads in the state of Madhya Pradesh. The project is to be implemented over a period of five years.

The central Indian state recently also signed an agreement with the Asian Development Bank (ADB) for a US $350 million loan for developing roads.

-- BERNAMA

Sri Lanka
Source: www.news.lk

Sri Lanka High Commission in New Delhi organized a trade and investment promotion event on 21st March at the High Commission premises. The main focus of the event was to promote Sri Lanka's exports and investments among the members of BRICS Chamber of Commerce and Industry. The event was sponsored by the Department of Commerce Sri Lanka.

The inaugural speech was delivered by High Commissioner Chitranganee Wagiswara who spoke on the emphasis that have been placed by Sri Lanka on economic diplomacy and gave a brief introduction on growing bilateral trade and economic relations between India and Sri Lanka. She requested the BRICS Chamber to link Sri Lanka to their large business network by introducing the opportunities available in Sri Lanka to the business communities in India and BRICS countries. She encouraged the participants to look at the vast opportunities available, which would be mutually beneficial.

Sumedha Ponnamperuma, Minister Counselor (Commercial) did a comprehensive presentation on products that could be exported from Sri Lanka and tariff concessions under various preferential trading arrangements. In addition he elaborated on areas that would interest Indian entrepreneurs and the incentives offered by Sri Lanka to potential Investors.

Speaking on behalf of the BRICS Chamber Dr. B.B.L Madhukar, Secretary General of BRICS expressed the importance of developing trade links between India and Sri Lanka. He said that the Chamber is planning to organize a delegation by the end of May 2017 as the delegation intends to participate at the Sri Lanka Investment and Business Conclave 2017. A question and answer session was held which demonstrated the interest of the participants.

Approximately 40 members of the BRICS Chamber of Commerce and Industry participated in the promotional workshop.

South Africa
Author: Prof. Patrick Bond
Source: www.businesslive.co.za

Unnecessary NDB loans to Eskom increase Bric power over the one African country that had the potential to fight for financial justice

Will the Brazil-Russia-India-China-South Africa (Brics) bloc ever really challenge the world financial order, as is often advertised?

New Development Bank (NDB) leaders — minus one conspicuous governor, Pravin Gordhan — meet in Delhi this weekend, to restate a vision of financial alternatives to the World Bank and International Monetary Fund (IMF).

Indeed the NDB began with environmentally oriented loans last year, and in 2017 aims to add $3bn in new credits.

But from SA's standpoint, all is not well, judging not only by repeated conflicts over NDB representation, but also the only local borrower's unwillingness to support NDB-financed renewable energy, apparent state manipulation by an Indian family and a Russian nuclear vendor, and perhaps most importantly, the country's (and continent's) capitalisation and debt repayment capacities.

Why green loans? The bank's original designers were two former World Bank chief economists, Joe Stiglitz and Nick Stern. Although their public endorsements of the NDB stressed sustainable development and climate change, in private Stern offered a very different rationale at a 2013 British Academy workshop: "If you have a development bank that is part of a [major business] deal then it makes it more difficult for governments to be unreliable."

Stern then asked (according to a YouTube recording), "are there any press here, by the way? OK, so this bit's off the record. We started to move the idea of a Brics-led development bank for those two reasons. Coupled with the idea that the rich countries would not let the balance sheets of the World Bank and some of the regional development banks expand very much, and they would not allow their share in those banks to be diluted."

While true, four Brics gained substantial IMF voting power increases in a December 2015 restructuring – China up 37%, India 23%, Brazil 11% and Russia 8% – but with negligible US or European dilution. Instead, the rising Bric shares were as a result of Nigeria and Venezuela losing 41% of their vote, along with Libya (down 39%), Morocco (27%), Gabon (26%), Algeria (26%), Namibia (26%), Cameroon (23%), Mauritius (21%) and even SA lost 21%.

Four Brics countries stood on African and Latin American heads to get weightier director seats at the IMF table. And when they arrived in 2016, the directors approved the reappointment of Christine Lagarde and, after she was convicted of negligence in a $430m French corruption case last December, the IMF directors unanimously endorsed her continued employment.

To be sure, the NDB's first loans did boost environmentally oriented projects: $300m to Brazil, $81m to China, $250m to India and $180m to SA to connect Independent Power Producer (IPP) renewable energy generators to the main grid. But these processes are accomplished with mostly local-currency inputs, hence the dollar loans were inappropriate. Like other multilateral financiers, NDB repayments are made in dollars, adversely affecting a borrower's balance of payments (although the NDB has started fundraising from yuan and rupee markets, so this may eventually change).

Just after taking on the NDB debt, Eskom's two most recent leaders, Brian Molefe and Matshela Koko, announced that they wanted nothing more to do with renewable energy. The battle was resolved only a month ago, when Gordhan's final budget statement recommitted Eskom to the IPP contracts.
Simultaneously, Gordhan had refused Eskom further nuclear energy financing from the fiscus (following a $200m 2016 payment), in spite of the in-principle reactor purchase agreement between President Jacob Zuma and Moscow-based Rosatom at an anticipated cost of $50bn-$100bn. The main supplier of raw inputs to the nukes – if they are built – will be Oakbay, the uranium company owned by the Gupta brothers.

This week's Gupta-versus-Gordhan turmoil is extremely important to the Brics not only because the former finance minister was an NDB governor. Also, the oft-rumoured ascension of Molefe to a Cabinet post has been postponed, unless South African Communist Party members Rob Davies and Ebrahim Patel now leave Zuma's government in protest.

Molefe was SA's Brics Business Council leader until recently (now he is one of five). His council leadership switched to Independent Newspapers owner Iqbal Survé after Molefe's Eskom resignation, a result of the public protector's State of Capture report revealing Gupta influence over Molefe. After implying the Guptas' neighbourhood hosts a shebeen that might explain his regular presence in Saxonwold, Molefe's credibility was permanently destroyed.

Just before resigning, Molefe attacked the IMF and World Bank in a newspaper column. He called for the replacement of "the current 'casino' financial system or 'law of the jungle' with a project that expressly promotes the common good among nations…. Brics and its allies are taking bold corrective measures by building a world system based on real value and to create a system capable of fundamentally shaping socioeconomic growth and development. There have been some significant steps taken, in particular the launch of the NDB, which has already started funding key projects."

These were the very "key projects" — renewable energy — that Molefe was actively sabotaging. Likewise, the NDB website observes "a need for multilateral development banks to reinvent themselves" on the one hand, but on the other, its president KV Kamath signed a deal with World Bank president Jim Kim in September for "co-financing of projects; facilitating knowledge exchange … and facilitating secondments and staff exchanges".

It's hard to believe NDB-related rhetoric. Pretoria's NDB non-executive director is Tito Mboweni – the Goldman Sachs adviser who in 2013 slammed the NDB as "very costly" and in 2015 declared that nuclear energy financing "falls squarely within the mandate of the NDB" – and the bank's vice-president and chief financial officer is Leslie Maasdorp (also formerly of Goldman Sachs).

But one other crucial NDB job remains open: the much-advertised head of the Africa regional centre.
Recall that in December 2015, Zuma announced that Nhlanhla Nene would urgently take that job, a fig-leaf appointment to justify replacing him with Des van Rooyen, considered a Gupta proxy. Not only did three top local bankers communicate that Zuma must reverse course, but the "critical intervention" (according to Peter Bruce) was made by Chinese co-owners of Standard Bank.

NDB officials subsequently stalled the Africa regional centre's launch, originally scheduled for March 2016. Last September, the Brics Business Council website declared that the new centre's Johannesburg headquarters would be ready by November. It is still to be launched.

The Johannesburg location was "well received" in the rest of Africa, according to the Brics Business Council. Leading Ugandan financial official Louis Kasekende announced that Africa should "have access to credit as quickly as possible at low rates", especially to "reduce the time frame of projects finalisation and approval process".

Reducing the time frame would logically mean less attention to environmental and social dimensions (the critique of development banks and the NDB most often made by civil society). But a larger problem is the extreme debt burden African countries now shoulder, following the 2011-15 crash of commodity prices.

The NDB can offer Africa only hard-currency loans that grow more expensive when currencies depreciate. In 2011, R6.30 bought a dollar; today it costs twice as much.

After Western debt relief in 2006, sub-Saharan Africa's foreign liabilities were cut by $100bn, to $200bn. But thanks mainly to Chinese state loans (associated with the extractive industries), the debt is now above $400bn. Angola, Chad and Ghana pay more than 30% of their governments' revenues on repayments.

SA's own payment obligations are also onerous, because to capitalise the NDB, $680m was allocated by Nene in 2015-16, rising steadily to $3.2bn this year and $6.2bn by 2020. The NDB's notional $100bn capital base is shared equally by all five (unlike the $100bn contingent reserve arrangement, which treats Pretoria as does the IMF, with a much smaller share of the quota, just $10bn).

Moreover, Pretoria also faces a terrifying rise in its own foreign debt, which the Reserve Bank last month reported rose to $143bn in September 2016, up $10.6bn from June. At 50% of gross domestic product (GDP), this is the highest debt burden in the country's modern history; the only prior foreign debt default was PW Botha's in September 1985, when that ratio was only 40%.

When Molefe was at Eskom he was raising $5bn from China – vital for a future nuclear reactor purchase – and at Transnet he also raised $5bn from the same source for (now controversial) locomotives to export 18-billion tonnes of coal through Richards Bay. Environmental factors were simply null and void.
Another key reason for our soaring foreign debt is to raise hard currency, much of which pays multinational corporations to remove SA-sourced profits and dividends to London and other hot-money offshore financial centres (by licit and illicit means). This current account deficit persists even when, as in 2016, SA runs a trade surplus. Today, as Chinese lenders, Brics-based mining houses and the Gupta family externalise funds, the tragic irony of the NDB emerges.

In short, unnecessary NDB loans to Eskom contribute to more Bric power over the one African country, SA, that once had the potential to fight for financial justice. But perhaps just like Molefe in the Guptas' lush suburb, such liberatory rhetoric might just have been diversionary Saxonwold-shebeen "talk-left", to disguise a "walk-right": into the hands of next-generation predatory lenders.

• Bond is professor of political economy at the Wits University School of Governance in Johannesburg and co-editor of BRICS (published by Jacana Media).

USA
Source: www.moneycontrol.com

The New Development Bank set up by the BRICS group of emerging economies plans to fund 15 infrastructure projects in member countries worth upto USD 3 billion this year, the bank's president, KV Kamath, said on Thursday.

The New Development Bank set up by the BRICS group of emerging economies plans to fund 15 infrastructure projects in member countries worth upto USD 3 billion this year, the bank's president, KV Kamath, said on Thursday.

The bank also plans to raise USD 300 million to USD 500 million in rupee-denominated bonds, called "masala" bonds, in the second half of the year, Kamath told Reuters in an interview in New Delhi.

The BRICS - Brazil, Russia, India, China and South Africa -agreed to create the New Development Bank in July 2014 with an initial authorised capital of USD 100 billion. The lender was officially launched a year later.

Last year, the bank, headquartered in Shanghai, funded 7 projects worth nearly USD 1.5 billion, said Kamath, who ran India's ICICI Bank from 1996 until 2009.

China
Source: www.ndb.int

The Board of Directors (BoD) of the New Development Bank has met today in New Delhi and approved the revision of policies pertaining to operations, treasury, governance, HR and risk. The policies of the NDB are required to be reviewed on an annual basis or as necessary, to reflect any changes to business environment or to provide for operational updates.

The Board also considered Financial Accounts that will be submitted to the NDB Board of Governors for approval. The Board received Independent Auditor's Report and Financial Statements for the period from 3 July 2015 (the effective date of the Agreement on the New Development Bank) to 31 December 2016.

The Board also discussed project pipeline in all members of the Bank.

Background Information

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players. The NDB intends to be fast, flexible and efficient, without sacrificing quality. The Bank will use various financial instruments to efficiently meet the demands of member states and clients.

China
Source: www.ndb.int

The Board of Governors (BoG) of the New Development Bank (NDB) approved today, in principle, the Bank's General Strategy document for 2017-2021. Governors have also approved the document on Terms, Conditions and Procedures for the Admission of New Members.

The Strategy document will be further worked on, in order to incorporate some proposals made by Governors and is expected to be made public no later than 1 June 2017.

The document on Terms, Conditions and Procedures for the Admission of New Members will soon be made public on the Bank's website. Governors have also decided that the criteria for expansion of membership will be worked out and finalized for approval by the BoG.

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players. The NDB intends to be fast, flexible and efficient, without sacrificing quality. The Bank will use various financial instruments to efficiently meet the demands of member states and clients.

China
Source: www.ndb.int

European Bank for Reconstruction and Development and New Development Bank agree on dialogue and cooperation at NDB Annual Meeting in New Delhi

The New Development Bank (NDB) and the European Bank for Reconstruction and Development (EBRD) have agreed to collaborate and exchange information in recognition of their mutual goal to foster sustainable development and infrastructure in the emerging markets of their respective regions of operations.

A Memorandum of Understanding setting out a strategic framework for cooperation between the two development banks was signed on 1 April 2017 during the second Annual Meeting of the NDB in New Delhi, India, by the presidents of the two institutions, K.V.Kamath of the NDB and Suma Chakrabarti of the EBRD.

The two parties agree to maintain a continuous working relationship, including consultations on senior level, exchange of information and potentially staff swaps.

EBRD President Suma Chakrabarti said: "The EBRD believes that the global development goals can only be met through joint efforts by multilateral banks, donors and the private sector. As one of the youngest and still growing development banks, the EBRD has always been eager to offer its expertise and support to new partners. With the NDB we share a vision not only of sustainable infrastructure, but also of green energy, which ultimately benefits the global economy. So I am very pleased to sign today's agreement."

"It is a pleasure to sign a Memorandum of Understanding between the NDB and the EBRD that formalises and deepens our partnership. The EBRD has been working closely with the NDB during its establishment process," said NDB President K.V. Kamath. "The Memorandum signed today further strengthens our cooperation, allows the NDB to tap into the expertise of the EBRD and strengthens the NDB's capacity to assess and implement projects."

"The NDB is striving to be closer to the needs of our members and to respond quickly and flexibly. We believe that in order to provide the best possible products and services to our members, partnerships with key national and global institutions are essential," K.V.Kamath added.

The EBRD and NDB already have an active exchange of knowledge and information since the creation of the New Development Bank in 2014.

The two institutions are some of the newest additions in the family of multilateral development finance.

The EBRD is a multilateral development bank set up in 1991 after the fall of the Berlin wall to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in emerging Europe. Since then, the Bank's region of operations has grown to include more than 35 countries from Morocco to Mongolia and from Estonia to Egypt.

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in Brazil, Russia, India, China and South Africa (BRICS) and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships. In 2016, the Board of Directors of the NDB approved seven investment projects in the areas of green and renewable energy and transportation for a total of over US$ 1.5 billion.

China
Source: www.ndb.int

New Delhi – New Development Bank and International Investment Bank signed today Memorandum of Understanding to develop mutually beneficial cooperation between the two institutions. The MoU was signed by Mr. Paulo Nogueira Batista Jr., NDB Vice President and Chief Risk Officer and Mr. Denis Ivanov, Deputy Chairman of the IIB Board, on the sidelines of the NDB Second Annual Meeting in New Delhi, India.

According to the Memorandum, the NDB and IIB will develop sector and thematic level collaboration in areas of mutual interest, including infrastructure development and sustainable development projects in renewable energy, energy efficiency, clean transportation and other areas. The two banks will endeavour to promote co-financing and other forms of joint participation in financial assistance for development projects and engage in other initiatives, including capacity building, research and knowledge exchange.

"Signing of this Memorandum of Understanding will allow us to generate synergies for the benefit of the regions where we both operate. NDB is committed to be a partner in bringing about sustainable development to drive growth and employment while ensuring environmental protection. We look forward to working together to address the world's huge infrastructure needs," said Mr. Paulo Nogueira Batista Jr.

"We are confident that NBD and IIB could greatly benefit from mutual cooperation at the strategic, operational, and technical levels and become a good example of how international financial institutions could partner", said Mr. K.V.Kamath, the President of the NDB. "NDB strives to be closer to the needs our members and to respond quickly and flexibly. We believe that partnerships with key national and global institutions are essential for us in order to provide the best possible products and services to our members," added Mr. K.V.Kamath.

"The Memorandum sets out areas for strategic cooperation between the IIB and the NDB towards the achievement of sustainable development and inclusive growth in countries of common interest. It further diversifies options for bolstering our global partnership and joint activities, including project co-financing, treasury management cooperation and funding of green initiatives, like the construction of hydropower generation plants in the north-west of Russia," stressed Mr. Denis Ivanov.

Background information

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players.

The NDB Second Annual Meeting is held in New Delhi, India. During the meeting, the management of the Bank provided an update on its work. In 2016, the Board of Directors of the Bank approved loans involving financial assistance of over USD 1.5 bln for projects in the areas of green and renewable energy, and transportation. All projects are coherent with the Bank's mandate of supporting infrastructure and sustainable development projects. The approved projects will support the creation of about 1500 MW of renewable energy capacity and are estimated to result in the reduction of greenhouse gas emissions by over 4 million tons per year.

In July 2016, the NDB issued its green financial bond in the China onshore interbank bond market. The size of the issue is RMB 3 billion (USD 449 million). The bond has a five-year term and nominal interest rate of 3.07%. The NDB received an "AAA" institutional rating from China Chengxin Credit Rating and China Lianhe Credit Rating and commenced engagement with international rating agencies.

On 22 July 2016, the NDB Board of Directors approved the project involving the provision of financial assistance of USD 100 million for the construction of two hydropower generation plants with a total installed capacity of 49.8 MW in the Republic of Karelia in the Russian Federation. The Bank will provide the financing through two international financial institutions – Eurasian Development Bank (EDB) and International Investment Bank (IIB) for on-lending to the project.

International Investment Bank (IIB) founded in 1970. Current shareholders of the Bank include: Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam. The Bank has undergone major modernisation since late 2012 and is rated BBB (outlook stable) by S&P, Baa1 (outlook stable) by Moody's, BBB (outlook stable) by Fitch and A (outlook stable) by Dagong.

China
Source: www.ndb.int

New Delhi – Today, Mr. Paulo Nogueira Batista Jr., Vice President and Chief Risk Officer of the New Development Bank (NDB) and Sir Danny Alexander, Vice President and Corporate Secretary of the Asian Infrastructure Investment Bank (AIIB) signed a Memorandum of Understanding (MoU) on the sidelines of the NDB Second Annual Meeting in New Delhi, India.

The MoU provides a comprehensive framework for NDB-AIIB cooperation, including developing sector and thematic level collaboration in areas of mutual interest, such as infrastructure and sustainable development projects. It will also enable these two Banks to partner on co-financing opportunities, facilitate knowledge sharing and provide mutual training and development of their staff.

"We are delighted to formalize our strategic partnership today. Deepening cooperation between our banks will support sustainable development efforts in emerging economies and developing countries to realize the common goal of global growth. We will jointly work on delivering sustainable infrastructure in the countries where we both operate," said Mr. Paulo Nogueira Batista Jr.

"Today's agreement with NDB will benefit our members through the kind of shared investments and expertise that will help us deliver critical infrastructure projects," said Sir Danny Alexander. "We believe there are real advantages to leveraging the collective experiences of our MDB partners and member countries. Only by working together, can we address the needs for power, transport and clean water across the region."

Background information

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players.

As a multilateral development Bank with developing countries as its majority shareholders, AIIB's investments are focused on the areas that matter most to its clients. Guided by their needs, the Bank is investing in sustainable infrastructure, cross-country connectivity and mobilization of private capital. Based on these themes, the Bank will leverage its relationships with other multilateral development banks and private financiers to meet Asia's growing infrastructure demands and contribute to social and economic growth in the region.

AIIB is a new multilateral development bank founded to bring countries together to address the daunting infrastructure needs across Asia. Headquartered in Beijing, AIIB commenced its operation in January 2016 and has now grown to 70 approved members from all over the world. Its mission is to improve economic and social development in Asia by investing in high quality, financially viable and environmentally friendly infrastructure projects.

China
Source: www.ndb.int

The Government of the Republic of India and the New Development Bank signed today a Loan Agreement approving the provision of sovereign project finance facility of USD 350 million for the first project that will be financed by the NDB in India — Madhya Pradesh Major District Roads Upgrade Project. The Loan Agreement was signed by Mr. Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance of India and Mr. Xian Zhu, NDB Vice President, Chief Operations Officer in New Delhi, India.

The Project will result in reconstruction and rehabilitation of approx. 1,500 km of roads to improve connectivity of the interior regions of the state with the national and state highway networks, with a focus on all-weather road availability and improved road maintenance and asset management. It will foster inclusive economic growth through increased incomes as a result of improved connectivity and access to markets for interior regions of the state. The project will be implemented by MP Road Development Corporation Ltd.

In 2016, the Board of Directors (BoD) of the NDB approved seven investment projects in all member countries for a total of over USD 1.5 bln. All projects are in line with the Bank's focus on environmentally friendly energy generation, sustainable development and infrastructure. The approved projects will support the creation of 1500 MW of renewable energy capacity and are estimated to result in the reduction of greenhouse gas emissions by over 4.1 mln tons per year.

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players. The NDB intends to be fast, flexible and efficient, without sacrificing quality. The Bank will use various financial instruments to efficiently meet the demands of member states and clients.

China
Source: www.ndb.int

New Delhi – New Development Bank and European Investment Bank signed today Memorandum of Understanding to structure future cooperation between the two institutions. The MoU was signed by Mr. K.V. Kamath, the President of the NDB and Mr. Werner Hoyer, the President of EIB on the sidelines of the NDB Second Annual Meeting in New Delhi, India.

According to the MoU, the NDB and EIB intend to explore cooperation in the areas of infrastructure, environment, and sustainable development projects in accordance with their respective mandates and policies. The two banks will seek to co-finance projects of mutual interest in eligible countries, including projects that contribute to the enhancing of sustainable infrastructure as well as engage in other initiatives.

"I am pleased to sign this Memorandum of Understanding together with EIB President Mr. Werner Hoyer. We greatly appreciate the support offered by EIB during the formation stage of NDB and look forward to further advancing our cooperation," said Mr. K.V. Kamath, President NDB. "The MoU structures our cooperation and lays the groundwork for working together for many years ahead. Collaboration between NDB and EIB will improve the ability of both banks to meet the expectations of their respective member states," he added.

"Establishing partnerships with key national and global institutions is essential for NDB in order to provide the best possible products and services to our members. We will strive to make a positive difference by complementing the efforts of other multilateral development banks, including EIB," said Mr. K.V.Kamath.

"Strengthened cooperation, enhanced knowledge sharing and stronger institutional and operational collaboration between leading international financial institutions is crucial to develop synergies and more effectively unlock new investment that improves people's lives and transforms economic opportunities. The European Investment Bank and New Development Bank have worked closely during the formation stage of the NDB and we look forward to building on this track record to jointly back transformational infrastructure around the world. As the EU Bank, we share the New Development Bank's commitment to support sustainable development and climate related investment. We look forward to enhancing this partnership in the years ahead," highlighted Werner Hoyer, President of the European Investment Bank.

Background information

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players.

The NDB Second Annual Meeting is held in New Delhi, India. At the meeting, the management of the Bank provided an update on its work. In 2016, the Board of Directors of the Bank approved loans involving financial assistance of over USD 1.5 bln for projects in the areas of green and renewable energy, and transportation. All projects are coherent with the Bank's mandate of supporting infrastructure and sustainable development projects. The approved projects will support the creation of about 1500 MW of renewable energy capacity and are estimated to result in the reduction of greenhouse gas emissions by over 4 million tons per year.

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Brazil
Source: www.brazilgovnews.gov.br

Temer says crisis in Brazil has subsided in the wake of measures by the federal government to help resume growth

With recent figures released by the Central Bank showing that the virtuous circle of the country's economy is now intensifying, President Michel Temer has predicted that the confidence of Brazilians in the country's economy is likely to increase in the coming months.

In messages posted on his Twitter account this Monday (27 March), Temer said Brazil is going in the "right direction". Some of the figures that support the president's assessment come from the Focus bulletin, a publication by the Central Bank that collects and averages out forecasts from over 100 independent market analysts.

The last bulletin, released today, shows improvements in the inflation scenario. Analyst forecasts for Brazil's Broad Consumer Price Index (IPCA) in 2017 have retreated from 4.15% to 4.12%, below the inflation target for this year (4.5%).

In his messages, the president also said the crisis is subsiding due to the measures taken by the government, and noted that consumer confidence in the economy is now at its highest since 2014.

India
Source: www.telegraphindia.com

New Delhi, March 31: India Inc is sensing huge investment opportunities in reviving the economies of Eastern Europe and Central Asia that have been roiled by political upheavals over the past decades.

Big names such as the Tatas, the Jindals and the Mahindras have been involved in developing infrastructure and takeovers. Sir Suma Chakrabarti, president of the European Bank for Reconstruction & Development (EBRD), said.

Sir Suma, who was born in Jalpaiguri in 1959, is here for the EBRD to sign a deal with the New Development Bank (NDB), formerly Brics Development Bank promoted by the grouping of Brazil, Russia, India, China and South Africa (Brics).


The NDB, led by India's K.V. Kamath, with headquarters in Shanghai, will hold its second annual meet here over the weekend.

"We have also been working with a host of Indian companies in Eastern Europe and Central Asia, including Tata Power on a hydel project in Georgia, with Tata Tea in Russia and JSW in a steel project Georgia, and we are likely to also work with an Indian firm in solar power projects in Russia ... so that is my second mission join hands with Indian firms to help them enter key markets abroad where we have been working for a long time," Sir Suma said.

The multilateral bank has recently also joined hands this year with automaker Mahindra facilitating its takeover of Turkish tractor maker Hisarlar. The EBRD partners private companies in building market economies using multilateral lending in Eastern and Southern Europe, North Africa and Asia.

"The big pitch we are making to India Inc is through the chambers - CII, Ficci and Assocham with whom we have memorandums of understanding," Sir Suma said.

We want to help them go overseas, turn into global giants that they are capable of becoming and in the process help countries in our mandate by channelling in foreign direct investment into them," he added.

"We enjoy legal immunities which protect our investments, so those investing with us are safe ... we want to scale up our and their investments. Luckily, unlike state run multilaterals, because of the nature of our bank's foundation, we don't have capital constraints, the sky is our limit as far as funding is concerned," the economist-turned-banker said.

Unfinished business

Sir Suma, who spent his initial years in Bengal, says after retiring some three or more years later he would like to write children's fiction.

"My dad used to make up stories to put me to bed, I used to do the same ... for some time now, I have been toying with the idea of putting all that down into a book."

India
Source: knnindia.co.in

New Delhi, Mar 31 (KNN) The New Development Bank (NDB), also known as the BRICS Bank, should focus on small scale investments instead of large scale infrastructure projects which often bring more negative impact, the civil society members recommended.

During the day-long convention on the "People's perspectives on the New Development Bank" organised by the People's Forum on BRICS on Thursday ahead of NDB's annual meeting in New Delhi, the members opined that NBD should focus on Micro, Small and Medium Enterprises (MSMEs) for diversification of investments.
The NDB is having its second annual meeting here from March 31 to April 2.
According to a media report, Caio Borges, a lawyer from the Business and Human Rights project of Conectas (Brazil) said NDB should reduce export-led, economic-growth-oriented development approach and look for diversification of investments by focusing on MSMEs instead of favouring big corporations.

"At this meeting, the NDB would discuss its strategic policy. Thus civil society is putting forward its vision that the bank should prioritize small scale investments instead of large scale infrastructure projects which often bring more negative impact, more exclusions and aggravate existing vulnerabilities rather than bring about actual development," Borges added.

Madhuresh Kumar of National Alliance of People's Movements (NAPM) said while the NDB was set up as an alternative to West-focused World Bank, it was now pushing the same corporate-led development model.
"In India, this corporate-led development, or neo-liberal development, has led to impoverishment of people, farmer suicides, large scale privatisation, natural resource loot and environmental degradation.

"NDB is unfortunately pushing the same model which was earlier pushed by the World Bank group and other international financing institutions," Kumar told a news agency.

NDB, popularly known as the BRICS Bank, was set up by the BRICS countries (Brazil, Russia, India, China and South Africa) based on an agreement at the BRICS summit in Brazil in 2014.

USA
Author: Sean Adl-Tabatabai
Source: investmentwatchblog.com

Russian President Vladimir Putin has begun the process of freeing Russia from the international banking cartel completely, by ditching the dollar in favor of gold.

As tensions between the west and Russia reach boiling point, Putin is making the necessary preparations to free his country from the grip of the Rothschild controlled banking system.

Thefreethoughtproject.com reports:

Russia isn't alone — the move away from the much-maligned, Western-centric international banking cartels toward a system less dependent on massive banks comprises a new plan for BRICS nations (Brazil, Russia, India, China, and South Africa) and their allies to vacate the almighty dollar and assert independence.

For Putin, the bulk issue pertains to the Worldwide Interbank Financial Telecommunication, or SWIFT, system — which allows for speedy and secure financial transfers worldwide — and threats from the United States and its allies to cut Russian banks from access.

"In layman's terms," Matthew Allen reports, "SWIFT allows for fast and (allegedly) secure international financial transfers. In fifty years when you are able to use your Bank of America debit card on the Moon (for a low fee of 2,000 moon rubles), it will be because of SWIFT or a system similar to it."

Economists have repeatedly warned of possible perils in eliminating Russia from the SWIFT system, but in 2014 — when the U.S. imposed sanctions against Moscow — Putin decided not to take any chances and began working on a system more insular and secure for the country and its allies.

Ewald Nowotny, policymaker for the European Central Bank, warned in 2015 cutting Russia out of SWIFT would be "very problematic because it could perhaps undermine confidence in this system," and, were that to occur, it "could of course affect all companies that do business in Russia."

Indeed, a recent report boasts any effort to oust Russia from SWIFT would have little effect on the nation's financial situation, stating,

"If the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is shut down in Russia, the country's banking system will not crash, according to Central Bank Governor Elvira Nabiullina. Russia has a substitute.

"'There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative,' Nabiullina said at a meeting with President Vladimir Putin on Wednesday.

"She also added that 90 percent of ATMs in Russia are ready to accept the Mir payment system, a domestic version of Visa and MasterCard."

Reports in January 2016 revealed some 330 Russian banks had moved to the nation's alternative to SWIFT — SPFS, the 'system for transfer of financial messages.'

Additionally, "Moscow and Beijing took another step towards de-dollarization with the opening of a yuan clearing bank in Russia. And earlier this month Russia's Central Bank opened its first-ever foreign branch in Beijing to allow for better communication between Russian and Chinese financial authorities," Russia Insider reports.

"The financial regulatory authorities of China and Russia have signed a series of major agreements, which marks a new level of financial cooperation," asserted Dmitry Skobelkin, deputy head of the Russian Central Bank.

As the U.S. Federal Reserve, Bank of England, and other major financial players continue trade in non-physical currency — and, particularly, in metals futures speculation and other riskier practices — buying large quantities of physical gold has become a major priority for BRICS and other nations.

Central banks have been accused of manipulating the system in various ways to ensure the dollar stays atop the world's financial dealings; but resentment mushroomed, and for many nations not privy to the West's auspices, abandoning the dollar has become an utmost, if odious, priority.

BRICS initiatives "to set up a new financial architecture at its eighth summit held in October 2016 in India have recently been under the spotlight. In order to avoid the International Monetary Fund (IMF) type of loan conditionalities and tackle the dominance of the United States (US) dollar in global finance, the new institutions set up by the BRICs are expected to provide a much needed change in the global financial architecture. These institutions include the New Development Bank (NDB), the BRICS-led Contingency Reserve Fund (CRF), and the Asian Infrastructure Investment Bank (AIIB)," a recent report on the alliance states.

If the U.S. moves to expel Russia from SWIFT — or if Russia acts first to do the same — the planet would be thrust into economic catastrophe and chaos. As Mac Slavo writes for SHTFplan.com,

"The Rothschild presence in Russia has been challenged; Soros-front NGOs have been kicked out, and it seems that only all out war will ever settle these power plays for the dominance or death of the U.S. petrodollar, which is ultimately controlled by the same few hands that steer and control the central banks of nearly all the world's nations. Only by stealth and monotony have these activities remained in the shadows."

Now, it seems the list of nations remaining obstinately if understandably disconnected from the current, insidious Western central banking system — and its darling petrodollar — appears curiously to mirror of the list of countries currently embroiled in military conflict or searing tensions with the United States.

While Russia and the other BRICS nations prep for theoretical expulsion from SWIFT, a major transformation of the seats of power appears to be taking form — but, as to be expected, any shift away from the status quo does not go unobserved.

Slavo cautions, "even with this massive and explosive changes in the works, those who control the finances are well aware of the shifts that are taking place, and are in position to reassert their leverage over humanity through new systems, and new centers of power.

"Curiously, it cannot be denied that Russia has been a player in the international framework that has been erected. They have been equal partners in covert research and experimentation, and for all the animosity with the U.S., it has also played a willing dance partner for much of what has been going on during the past century."

When it comes to the world of international finance, however, prior diplomatic coordination is of little import.

Putin knows as well as any world leader such a massive shifting of power will not happen overnight — even if the U.S. and the West boot Russia from SWIFT.

But Russia will be ready when it does.

India
Source: www.financialexpress.com

Chief Economic Adviser Arvind Subramanian today flayed foreign credit rating agencies for adopting inconsistent standards while evaluating the country, saying that BRICS countries are looking to set up an independent rating agency to overcome it.

Chief Economic Adviser Arvind Subramanian today flayed foreign credit rating agencies for adopting inconsistent standards while evaluating the country, saying that BRICS countries are looking to set up an independent rating agency to overcome it. Stating that foreign credit rating agencies regularly meet him and evaluate the risks in the country, he said, "last time when they (credit ratings agency) came was in September 2016 and they said they will not upgrade rating of India". "You know I might have written scathing OP-ED pages after they left. But as a government official I have to be more responsible. Instead what we did in the Economic Survey was to show how the inconsistency in some of the standards employed by the rating agencies are", he said.

Subramaniam made these comments while delivering a lecture on 'Economic Survey 2016-17; How India Surprises' at IIT Madras here. "If (economic) growth comes down, risks increase.If there are too much borrowings in the country, risks increase.Despite India's growth going up compared to China, the ratings agencies have put us seven notches below China", he said. "We call this as poor standards. This is a kind of inconsistent evaluation (by ratings agencies", he said.

To avoid such inconsistent standards, the five-nation group of BRICS countries had decided to set up an "independent ratings" agency. The agency would be based on market-oriented principles, and further strengthen the global governance architecture. Referring to property tax collection in India, he said cities like Bengaluru, Chennai, Jaipur have been collecting lesser taxes compared to the potential they can. "The more a city collects property taxes, the better services they can provide. It is unambiguously true. But cities like Jaipur collect just three to five per cent of the potential. Bengaluru collects only 10 per cent as property taxes", he said. "Even Chennai, I am sure it will be collecting about 7-8 per cent of property taxes than the potential it has. But with the use of technology, cities can estimate and collect property taxes better", he said.

USA
Author: Paul Kaiser
Source: russia-insider.com

Trading in local currencies has already started — and lays the groundwork for facilitating BRICS transactions in gold

Recent progress made in streamlining trade in local currencies has brought Moscow and Beijing closer to creating a financial architecture that could facilitate transactions in gold.

As we reported last week, Moscow and Beijing took another step towards de-dollarization with the opening of a yuan clearing bank in Russia. And earlier this month Russia's Central Bank opened its first-ever foreign branch in Beijing to allow for better communication between Russian and Chinese financial authorities.

According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitions plan — using gold to make transactions:

The clearing center is one of a range of measures the People's Bank of China and the Russian Central Bank have been looking at to deepen their co-operation.

[...]

One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal.

On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.

The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS:

"BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets."

Future plans to facilitate transactions between Moscow and Beijing in gold would certainly explain why the two countries are leading gold producers and buyers.

Creating a BRICS "gold marketplace" would be an excellent way of bypassing the dollar while also using a "currency" that could be easily recycled for trade with other member nations.

And while trading in gold won't happen overnight, BRICS states have already moved towards creating a "new financial architecture" that "tackles the dominance of the U.S. dollar in global finance":

The initiatives taken by the member nations of BRICs (Brazil, Russia, India, China, and South Africa) to set up a new financial architecture at its eighth summit held in October 2016 in India have recently been under the spotlight. In order to avoid the International Monetary Fund (IMF) type of loan conditionalities and tackle the dominance of the United States (US) dollar in global finance, the new institutions set up by the BRICs are expected to provide a much needed change in the global financial architecture. These institutions include the New Development Bank (NDB), the BRICS-led Contingency Reserve Fund (CRF), and the Asian Infrastructure Investment Bank (AIIB).

As one financial expert noted recently:

In recent years, the BRICS countries – Brazil, Russia, India, China and South Africa – have been taking small steps to reduce the primacy of the dollar in international trade. China has been leading this effort in recent years.

I recently came across this headline published by the South China Morning Post: "Moscow and Beijing join forces to bypass U.S. dollar in world money market." You see, Russia and China have been working towards stronger economic ties for years.

The latest sign of this cooperation happened March 16, when the Central Bank of Russia opened its first overseas office in Beijing. The local news called this "a small step forward in forging a Beijing-Moscow alliance to bypass the U.S. dollar in the global monetary system."

Trading in yuan is just the first step.

India
Author: Vinay Pandey
Source: economictimes.indiatimes.com

The New Development Bank, or BRICS Bank as it is popularly called, is in its second year of operation. The bank's board is meeting in Delhi over the weekend. Veteran banker KV Kamath, who heads the bank, spoke to ET's Vinay Pandey on the progress made by the new bank and how he sees the Indian economy. Edited excerpts:

When the BRICS Bank was announced, the narrative was that this was being promoted as an alternative to the existing multilateral set up. How has that narrative played out?

It is an initiative that the BRICS nations took, which to me in a larger context was five countries from the south which were traversing through the development paradigm came together and said we will try to build an institution on our own. To properly reflect its context, they gave the name the New Development Bank. One year down the road, I would think the objectives that we had started off with, we are on the road to meeting them. We need to build the strength at the ground level. I think that strength has now been built. Then you need to build execution capability. We have built that. What was a startup is now a functioning bank.

In terms of lending what kind of ambition does the bank have?

Our focus basically is around the infrastructure space, sustainability being a key and green being a key. In the first year, the focus was on green energy and slowly expanding it to other areas of sustainable activity. We will stay within this core set of activities. We did about a billion and half in US dollar in lending in the first year. Our target is to do between two and half and three billion this year and year forward.

One of the big appeals of this bank as we saw in India was that India and other developing countries will get access to Chinese surplus capital without the security concerns that are raised through bilateral route. How do you read that story?

In running of the bank, I don't think there is this equation at all. We run the bank as a professional institution, five founder members, and whatever we try to do we do through a board decision to actually fund a project. We run like a true global bank.

You have the mandate to expand beyond the five countries. We see AIIB has already done. Do you see yourself taking on more members?

In our case, clearly the initial thoughts of the founding members were to keep it to BRICS countries which all came with equal shares. Any membership expansion is something for the board of governors to consider and approve.

Are you happy with the pace of the New Development Bank?

As a banker, I can say that we could not have operated at a faster pace. There are certain fundamental structures in a bank which you need to have in place and we had to have those in place before we could have grown.

How do you see the global economy?

The global economy is starting to turn around and within that I would think even those BRICS countries which had certain challenges in the last two years are clearly coming around. They are doing much better than in the past two years. And as far as India and China are concerned, there is an articulated statement of what the growth will be in these countries. I would think for all the countries who are bank members now, the current year is something that we can look with optimism.

You have raised local currency funds in China and now you are looking to raise rupee funds. Is that going to be the broader strategy?

In the last one and half years we have found that local currency funding is becoming the flavour of the days as it were for a very simple reason that tremendous volatility has been seen in the global currency market place. Countries find it is best to stay near to what they can manage, which is local currency risk. So, there is demand. Of course, we have to make sure that pricing is right. India becomes a natural next step for local currency because there is a very large local currency market and very interestingly there is a masala bond market also. Our route will have to be necessarily through the masala bond market.

How do you see the Indian economy post demonetisation?

I would think that the demonetisation exercise clearly was a success. The timelines that were articulated to get the remonetisation in place have been met. The impact of demonetisation in terms of sucking out the black money in the system, the first part is done. We will now have to see the implications in terms of the tax collections through this.

Has the economy bounced back quicker than it was expected from demonetisation?

What could have slowed it down is curtailment of say first level working capital, second level ability of the consumer to buy the product due to a variety of reason – he doesn't have the liquid cash and so on. I would think the two-month process gave enough lead to correct these things, so I would presume it hasbounced back healthier.

One of the big worries has been nonperforming assets. The idea of a bad bank has also come back on the table. What is your view?

There are two problems here. One is putting the asset back to use and the second getting the banking system to a healthy state. Putting assets to use can be done in two ways. Resolve it within the bank or take it into bad bank. Recapitalisation need in either case will remain, that's the hit the banks will have to take. A bad bank doesn't automatically resolve problems. A bad bank requires funding. So, the first question we will have to answer if we talk of bad bank who is going to fund this. I don't see the money. The resolution exercise has to be within the bank, otherwise we are wasting time. The government has to drive this resolution exercise, which is happening. Yes, there could be issues of what we call moral hazard. We will have to look at it as we go along.

How do you see the BJP's recent election victory in UP, which has raised expectations of a faster pace of reforms?

GST bills have already been passed. As I see it, any government's ability to pass what it needs for a reforms process and its ability to push that through, I think is a big plus to an economy. Probably, this victory will give the government the momentum required to get a whole lot of things done.

What would be in your view the key reforms that need to be done going ahead?

The key growth engine for this country at our stage of development is going to be infrastructure, infrastructure coupled with retail side of the economy will be a key driver. Actions taken on the agriculture side again will sustain whole lot of activity in the country.

How would you assess these three years of the government and how do you see things going ahead?

Three years were trying to get the economy respinning at pace and I would think that part of it is done. Now the opportunity is to drive it at even a faster pace. That should happen starting from now onwards though the slight challenge is going to be weakness in some parts of the private sector, some parts of the banking sector. Urgency to fix these quickly and set a tight timeline, I think then the economy should be firing on all cylinders.

We hear lot of noise in terms of social tensions, Hindutva, etc. Is this just here or globally too it is noticed?

I don't hear the noise where I am in this context. It doesn't get reflected globally. Where I sit, India is still looked at as the brightest spot among comity of large economies.

If you were to pin down what is it that makes India a bright spot, what would you say?

What I find now is the large infrastructure gap in the country which can be very productively filled. The act of filling it itself will generate economic development. And, the fruits of this investment will bear returns for next twenty-thirty years. I think this is the most exciting thing to me about India. It's a vast country with vast opportunities, vast gaps.

South Africa
Source: thebricspost.com

President Jacob Zuma announced a cabinet reshuffle shortly after midnight on March 31 in which five minsters were removed from cabinet and five ministers moved to new positions. The BRICS Post canvassed several economists and asset managers as to what this would mean and whether this would result in a ratings downgrade.

Speculation had been mounting since Monday morning that President Jacob Zuma would announce a cabinet reshuffle after he called back Finance Minister Pravin Gordhan and Deputy Finance Minister Mcebisi Jonas from an overseas investor roadshow.

Prior to the recall, the rand reached a 20-month best level of R12.31 to the dollar, while in morning trade on March 31 it touched R13.6.

The extent of the revamp of the cabinet was not anticipated by political commentators as ten ministries now have new political heads. As yet, no Directors-General (DG), the bureaucratic heads of ministries, have been replaced, although the DG of Social Development Zane Dangor had resigned earlier in March.

The new Finance Minister is 45-year-old Malusi Knowledge Nkanyezi Gigaba, who was previously the Minister of Home Affairs. He holds a Bachelor of Pedagogics in Education and a Master of Arts degree in Social Policy.

"Rating agencies will likely see this move as a threat to the strength of South Africa's institutions and hence the heightened probability of an earlier than anticipated rating downgrade," Mark Appleton, the head of Multi Asset & Strategy at Ashburton Investments, said.
Dennis Dykes, the chief economist at Nedbank, was more circumspect, as it depended on whether there was a civil society reaction to the move. The official opposition party, the Democratic Alliance, have already asked the courts for an urgent interdict to prevent the swearing-in of the ministers later on March 31.

"If there is a fight back within the African National Congress (ANC) leading to an earlier elective conference or a presidential recall there is a possibility that the country can avoid a ratings downgrade. Otherwise it is a question of when," Dykes said.

Rand Merchant Bank foreign exchange strategist John Cairns expected that all the agencies will downgrade the sovereign credit rating by one notch each.

"This means that the foreign currency credit rating from S&P and Fitch will fall to BB+, while it will sit at the edge of investment grade at Moody's, Baa3. We think all three rating agencies will retain their negative outlooks. Moody's action will occur as per schedule on April 7. Fitch is not bound by a timeline so it can also act quickly. It is not certain, but S&P might bring forward its review to the coming weeks, ahead of the scheduled 2 June deadline," Cairns noted.

Nomura International head of Emerging Europe, Middle East and Africa Economics Peter Attard Montalto said the cabinet reshuffle may prompt multiple downgrades.

"The cabinet reshuffle is an attack on the institution of the National Treasury (NT) and as such will trigger multiple downgrades. As we've highlighted before whilst there are some fiscal risks we are more worried about NT's role in procurement, preventing corruption and oversight of state-owned enterprises including nuclear and banking," he said.
Charl Kocks, the CEO of Ratings Afrika, which looks at governance of institutions, was also more circumspect.

"I expect there will be a ratings downgrade, but there will be no knee-jerk reactions. The position of National Treasury (NT) has been weakened and the agencies will be very hard on them from now on: reassurances will have to be backed up by more than simply NT views," he said.

Amongst the generally negative reaction to the cabinet reshuffle, the SAPVIA (the South African Photovoltaic Industry Association) stood out as welcoming the move.

"We would like to congratulate Ms Mmamoloko Kubayi on her ministerial appointment to the Energy portfolio. We look forward to engaging with the new Minister and her team around how to give effect to the transformation of the energy sector and the role that solar PV can play in this journey," the organisation said.

Colen Garrow, the economist at Meganomics said that political uncertainty has crept higher, and this will likely weigh against what is left of the country's investment grade rating.

"Rating agencies will likely make pronouncements by June. However, they could announce sooner and are not bound by a fixed calendar date, but rather events that change economic and political risk fundamentally, and thus make a change in a credit rating more urgent," he said.

Lesiba Mothata, the Chief Economist at Investment Solutions, said investor confidence has been severely dented and foreign investors have already priced in a ratings downgrade.

"Given such volatility and uncertainty, the new authorities need to communicate that South African institutions remain intact. The independence of the South African Reserve Bank and the judiciary needs to be affirmed. They will also need to demonstrate that fiscal policy will not take a materially different direction from what has been established since 1994. The biggest fear held by investors is whether more populist fiscal policies will be embraced or not," he said.

Brazil
Source: www.brazilgovnews.gov.br

Increase is also a result of a higher projected share of renewables

According to the Monthly Energy Bulletin - January 2017 (link in Portuguese), the share of renewables in Brazil's supply of electricity - part of the country's overall energy grid - are projected to substantially increase this year, reaching 83.3% of all sources. Globally, that indicator is significantly lower, standing at 24.1%.

The increase is a result of marked increases in wind power generation and of the changes underway in the national energy sector, which has encouraged both the growth of renewable sources and the diversification of the grid in recent years.

The Domestic Supply of Electricity (OIEE in the Portuguese acronym) for 2017 has been estimated to reach 630.2 TWh this year, or a 2.6% increase over 2016.

The Bulletin is prepared by the Ministry of Mines and Energy, and monitors a set of energy and non-energy variables in order to allow for reasonable estimates of the monthly and cumulative behaviour of total energy demand in Brazil.

Estimates point out that hydroelectric power will remain the most important source in Brazil's grid in 2017, accounting for 67.9% of total power (a slight decrease from 2016's 68.6%).

This decrease in the share of hydro will be offset by good performances from other renewables, such as wind and biomass. Wind is slated to increase its share of total power supply from 5.3% to 6.5% between 2016 to 2017, while biomass is expected to grow from 8.8% to 9.0% in the same period.

Oil production in January 2017 increased by 15.3% over the same month in 2016, repeating the good performance seen in the last months of 2016. Natural gas has seen a similar boost, with growth of 13.1%.

Brazil
Source: www.brazilgovnews.gov.br

Week will take place every year in November, with lectures and discussions on women's rights violations

President Michel Temer signed a law this Monday (27 March) that creates the National Week of No Violence against Women. The text was approved by Congress in honour of International Women's Day, celebrated on 8 March.

The original bill, introduced by Deputy Chico Lopes (PCdoB-CE), provides that the related awareness campaign be held every year on the last week of November.

Activities include public lectures, debates and seminars about women's rights violations; all promoted by the government in partnership with civil society organisations.

The Week is another measure to help combat violations of women's rights, in line with the priority given by the federal government to the promotion of gender equality.

Heroines of the Motherland

On Tuesday (28), the president further signed into law the inscription of Clara Camarão and Antonia Alves Feitosa in the Book of Heroes and Heroines of the Motherland, deposited in the Tancredo Neves Pantheon of the Motherland and Liberty, in Brasilia.

Clara Camarão, a Potyguara indigenous woman, led a group of female warriors who fought the Dutch in the Battle of Guararapes in 1648.

Her Portuguese name comes from being baptised before marrying Antônio Felipe Camarão, a Poti indigenous man and a hero of the war against the Dutch. After their marriage, Clara marched with Antônio on all battles.

Clara broke the centuries-old division of labour of her tribe by leaving her household chores to fight. She mastered the bow and arrow, the spear and the tacape (a small axe similar to a tomahawk).

Faced with the prohibition to fight alongside her husband, imposed by her tribe's customs, she formed a squad of Potygyuara women under her command. There are no records of the place and time of her death.

Jovita Alves

Jovita Feitosa Alves was a volunteer in the Brazilian troops during the Paraguayan War. At the age of 17, she prepared to fight in the Paraguayan War despite the sexism and social conventions of the time.

It is said that, disguised as a young man, with clear-cut hair and wearing a leather hat, she went to the capital, where the Volunteers of the Motherland were assembling, to enlist and go to war. Before leaving, she was discovered and prohibited by the then Minister of War, the Viscount of Cairú, to join the front.

Disheartened, Jovita settled in Rio de Janeiro, fell into profound depression and committed suicide by stabbing her own heart with a dagger at the age of 19.

Brazil
Source: www.brazilgovnews.gov.br

For President Michel Temer, proposals lead to better monitoring while reducing red tape for producers

A Decree and a Provisional Measure (a sort of Executive Order) signed this Wednesday (29) by President Michel Temer create more stringent inspection requirements and significantly step up sanctions for Brazilian meatpackers that fail to comply with health regulations. The aim is to modernise oversight and enhance the quality of Brazilian animal protein.

With the most recent changes enacted to the Regulations for Industrial and Sanitary Inspection of Animal Products (RIISPOA), created 65 years ago, new standards were adopted to further ensure food security and consumption readiness and to fight economic fraud, with stricter sanctions for offenders. The Regulations cover all types of meat (including beef, pork and poultry) as well as milk, fish, eggs and honey.

"The decree we signed today is part of an effort aimed at ensuring stricter supervision while also reducing bureaucracy for this sector," the president said during his remarks at the signing ceremony. "[With] tougher penalties for offenses in the processing of animal products, we will also have more transparency and objectivity in oversight," he added.

The provisional measure signed by Temer creates significantly more punitive penalties to offending meatpackers: fines increased from R$ 12,000 to R$ 500,000. According to the Ministry of Agriculture, Livestock and Food Supply (MAPA), the changes were decided after consulting experts and taking into account over 3,600 contributions made directly by citizens through public consultations.

"This episode invited reflection. It made all of us we listen, and feel it in our skin, in the flesh, the importance of agribusiness, of our animal protein exports. We have all united around it, and we are winning this battle," said Temer, citing agriculture as one of the supporting pillars of the national economy.

Brazil
Source: www.brazilgovnews.gov.br

Measure prevents the creation of new taxes and helps maintain public accounts in check

In its effort to meet the fiscal target for the year and maintain public accounts balanced, the government has decided to cut R$ 42.1 billion from expenditures planned for 2017. The decision is part of the government's efforts to prevent increases in taxes or the creation of new ones in the country.

According to Finance Minister Henrique Meirelles, the expectation is that this will not be the final cut of the year. Additional revenues, the decisions for which are now pending in court, may increase the budget and reduce the need for adjustments.

Were it not for the reorganisation of certain taxes and victories already obtained in court, the adjustment would have been higher.

Meirelles explained that the measure that rearranges the tax system prevented the creation of new taxes. The government is ending a payroll tax relief programme for some sectors for which it has not led to increased productivity or more jobs.

Until then, companies were temporarily exempt from the requirement to collect employer social security contributions at 20% of payroll, being instead allowed to pay 1%-2% of revenue. In practice, this meant lower taxes for the beneficiaries.

Payroll tax relief

The government's decision, announced this Wednesday (29 March), does not completely end the benefit. The tax relief programme will continue in force for a few specific sectors, such as passenger buses, subways and rail, construction, infrastructure and communications.

With that change alone, government revenue is expected to increase by R$ 4.8 billion. "We decided not to increase or create taxes because that would be detrimental to the resumption of economic growth," Meirelles explained.

Where cuts will be made

The Minister of Planning, Development and Management, Dyogo Oliveira, said that the R$ 42.1 billion reduction in budget spending will be obtained, among other things, by cuts on binding amendment expenditures (R$ 5.4 billion) and non-binding amendment spending (R$ 5.5 billion).

There will also be cuts in the Growth Acceleration Programme (R$ 10.5 billion) and in the budgets of other public agencies (R$ 20.1 billion). The legislative and judicial branches also suffered proportional adjustments of R$ 580 million.

India
Source: bricsjournal.com

South Africa plans to increase its international tourists by five million in the next five years for the sector to contribute significantly to the country's GDP.

The country recorded a record-breaking 10 million international tourists in 2016 but its contribution to the economy stands at about 3% and Tourism SA CEO Sisa Ntshona said this needs to change.

"The continent as a whole reported an 8% surge in international arrivals in 2016, with Sub-Saharan Africa increasing by 11% and South Africa by a massive 13%. These figures far exceed the global increase in international arrivals of 3.9% overall. So Africa is definitely the happening place to be, with vast untapped tourism potential that could buoy the greater African economy and contribute to its prosperity," he said this at the launch of Tourism Indaba 2017 to be hosted in Durban in May.

Ntshona said their role is to get the message to the world that Africa's tourism industry is open for business and ripe with possibility.

"Our continent is a value-for-money destination offering multiple incredible experiences that will take your breath away, from high-end luxury to bush-whacking fun," Ntshona said.

On Tourism Indaba 2017, Ntshona said they expect 7 000 delegates from around the world to meet in Durban to grow the African tourism economy through constructive conversations and dynamic partnerships.

About 90 small tourism businesses would be hosted at the show to "be given valuable exposure as well as an exposure to pitch their offerings."– emerging and existing enterprises that are at least 50% black-owned," Ntshona said.

"They are drawn from each of South Africa's nine provinces and we call them our Hidden Gems, because they are tucked-away treasures that only a select few know about."

Thanks to a partnership between South African Tourism, the National Department of Tourism and the Southern African Tourism Services Association, these entrepreneurs will be given valuable exposure at INDABA as well as the opportunity to "pitch" their offerings to travel buyers during speed marketing sessions.

The Indaba, dubbed "Africa's Top Travel" show is expected to attract exhibitors from about 15 African countries.

Head of Durban Tourism and Acting Deputy City Manager of eThekwini Philip Sithole said despite the highly competitive tourism environment, Indaba has been able to maintain its position as the premier travel show on the African continent.

USA
Source: www.zerohedge.com
Author: Tyler Durden

The drama surrounding South Africa's finance minister appear to be over, and as many had expected, it concluded with president Jacob Zuma firing his finance minister.

As The Mail & Guardian reports, Zuma is set to announce a major reshuffle of his cabinet. The president has contacted affected cabinet ministers individually ahead of the formal announcement. Several reports indicate that nine ministers, including Finance Minister Pravin Gordhan, and six deputy ministers will be affected. On Thursday evening, Zuma called a special meeting of the ANC's top six officials Cyril Ramaphosa‚ Baleka Mbete‚ Gwede Mantashe‚ Jessie Duarte and Zweli Mkhize, at his the presidential home, Mahlambandlopfu.

Besides the key finance ministry, he is expected to announce changes to several ministerial positions.

Earlier on Thursday, the SACP confirmed that Zuma had told its members that he planned to replace Finance Minister Pravin Gordhan and his deputy Mcebisi Jonas in a Cabinet reshuffle. Gordhan will reportedly be replacted by Malusi Gigaba, the South African minister of public enterprises.

He is expected to announce changes to several ministerial positions.


"The SACP wish to state that as the norm, the president informed us of his intention to effect a Cabinet reshuffle, replacing both the minister and the deputy minister of finance," SACP deputy secretary general Solly Mapaila said.

Zuma, however, is expected to experience severe backlash to any changes to the cabinet. In this week's M&G, the president's detractors in the party warned that they would make Zuma's life "unbearable" going as far as forcing him to step down if his plan to remove Finance Minister Pravin Gordhan from his position comes to pass.

The anti-Zuma faction has also warned they would join forces with opposition parties in Parliament and vote for a motion of no confidence against him. This comes as the Economic Freedom Fighters and the Democratic Alliance on Thursday announced their plans to have Zuma removed as president.

In other words, South Africa may be facing a full blown political crisis in the coming days, something increasingly reflected in the ongoing drop in the South African rand, which for now is merely concerned about a potential downgrade in the country's sovereign rating to junk: recall that all three rating agencies have said that further political infighting in the country would likely prompt downgrades.

INDIA
Source: in.rbth.com

Scholars from the BRICS countries can submit their thesis before May 10.

Export-Import Bank of India (Exim Bank) is inviting research scholars from the five BRICS countries to submit their PhD thesis for the bank's 2017 BRICS Economic Research Award.

"Research thesis of nationals, of any of the five member nations of BRICS i.e. Brazil, Russia, India, China and South Africa, who have been awarded a Doctorate or who have submitted thesis for a Doctorate from any recognized nationally accredited University or academic institution globally, during the period January 2012 to March 2017, are eligible to participate and receive the Award. All entries must be received by Exim Bank on or before May 10, 2017," the bank said in a press note.

The subject matter of the thesis can be research in international economics, trade, development and related financing, Exim Bank said.

"Issues of relevance to BRICS nations/member development banks of BRICS such as those pertaining (but not limited) to international economics, foreign trade, development and related financing, foreign direct investments, joint ventures, international competitiveness, policies impacting trade and investment, monetary and fiscal interventions would be of interest," the bank said.

The first BRICS Economic Research Award was presented to Dr. Joao Prates Romero in October 2016 during the BRICS Summit held in Goa.

INDIA
Source: economictimes.indiatimes.com

JOHANNESBURG: Indian-origin South African billionaire Iqbal Surve has been appointed as chairperson of the country's BRICS Business Council and has underlined the need for strengthening trade ties with countries like India and China.

Straight after his appointment by the South African government, Surve, headed to New Delhi for the mid-term meeting of the Brics Councils from other countries in the bloc - Brazil, Russia, India, China and South Africa.

He hightlighted importance to strengthen ties with China and India.

"In the age of Trump protectionism and Brexit, we have to strengthen our ties with business in the East, especially China and India, whose economies are expected to be number one and number three in the world by 2030, with a GDP of USD 35 trillion and USD 16 trillion respectively," Surve said.

"This opens up many opportunities, not only for South Africa but for the continent," Surve said, adding that it was of utmost importance that Africans benefit from the new BRICS Development Bank.

"It is an interesting development that China is flying the flag for globalisation at a time when US President Donald Trump is taking a more protectionist stance," Surve was quoted as saying by the daily Business Report.

Surve, the chairperson of Sekunjalo Group and Independent Media, has interests in media, technology and healthcare.

The chief executive of the South African Public Investment Corporation, Daniel Matjila, lauded Surve's appointment.

Surve said he sees his new role as one of being an enabler to ensure that Brics benefits the most marginalised South Africans and Africans, especially in the areas of financial services and sustainable development financing.

Surve said the Business Councils had a huge role to play in economic development.

"We want them to build dams, roads, power stations and railway lines in Africa. It is noteworthy that all five countries (in BRICS) have different ideals, economic policies and politics, yet we know that for economic growth we have to work together to ensure our people benefit economically.

"Included in the benefits must be skilling and reskilling in preparation for the fourth industrial revolution, where biological, physical and digital worlds merge," Surve concluded.

Surve is a founding member of the BRICS Business Council and the Clinton Global Initiative; he serves on a number of multi-lateral institutions and global organisations.

Surve served as the first chairperson of the World Economic Forum Global Growth Companies Advisory Board and vice chairperson of the Global Agenda Council for Emerging Multinationals. He is a participant member of the G20 meeting and serves on B20 Task Teams as well as the Unga private sector forum, amongst others.

INDIA
Author: Tanvi Dubey
Source: yourstory.com

Women's entrepreneurship needs more support, encouragement, and funding if we want to see more economic growth.

The micro, small, and medium enterprises (MSME) sector constitutes a major chunk of the Indian economy. Employing 80 million people year on year, it contributes to eight percent of the GDP.

This backbone of the Indian economy can sustain and support the youth and women, especially the latter. More financially empowered women impact the economy, improve the GDP, and help to better their homes and society.

Women's entrepreneurship can make a particularly strong contribution to the economic well-being of the family and communities, poverty reduction, and women's empowerment, thus contributing to the Sustainable Development Goals (SDGs). Hence, governments across the world, as well as various developmental organisations, are actively undertaking promotion of women entrepreneurs through various schemes, incentives, and promotional measures, shared the Minister of MSME, Haribhai Parthibhai Chaudhary at the BRICS International Conclave on Innovation and Business Strategies: Pushing Boundaries and Empowering MSMEs held on 25th March in New Delhi.

The event was about empowering women, encouraging women entrepreneurship, and establishing a sound foundation which will help breed more women entrepreneurs. Although the Indian government has been making some strides in this regard, challenges persist.

Schemes by the government

In December 2016, Prime Minister Narendra Modi announced a few schemes and programmes to facilitate and generate employment in the MSME sector and help motivate and strengthen not just women entrepreneurship but also the small and micro industries in India.

Credit limit enhancement: Under the credit guarantee scheme for small businesses (CGTMSE), the credit was increased from Rs 1 crore to Rs 2 crore with the inclusion of NBFCs in the same.

Enhancement of cash credit limit: This has been increased from 20 percent to 25 percent of the turnover.

Small tax benefits: Additional small tax benefits to businesses based on their usage of the digital payments infrastructure.

Challenges women entrepreneurs have to overcome

Aparna Saraogi of WEE, an initiative to strengthen the women's ecosystem, says, "Organisations headed by women have shown higher financial returns, less NPA, and faster access to market. More than 70 percent of consumer behaviour is decided by women, India has a good representation of women in MSME enterprises, but women still constitute only 17 percent of India's GDP because of their absence in the workforce. Only around 20 percent startups across the globe are founded by women."

Talking about the impediments the women's entrepreneurial ecosystem in India faces, Shweta Singh, Co-Founder of StepUp360, the organisers of the conclave, said,

From getting incubated to commercialising their product, women entrepreneurs tend to face a lot of challenges. We strongly believe in empowering such women by improving their problem-solving capabilities and tools to encourage their incremental creativity and innovation.

Devesh Chawla, Founder and CEO, Chatur Ideas, said, "Women are not only the backbone of the family but the entire nation. Knowing this, how can any startup ecosystem flourish without women being an integral part of it? The most inherent problem that women entrepreneurs face is finding finance to start and grow."

What needs to give?

One of the primary things that need to change for women is the mindset, a transformation both men and women need to undergo. "Mindsets need to change," said Sanjana Jon, the New York-based fashion designer. Women have been conditioned to think of themselves as being the primary caregivers and nurturers. It is a tag that women have adopted as their own. Sanjana urged women to look beyond the traditional roles of being a good wife and mother and embracing economic empowerment.

Education is essential, for it leads to economic empowerment. Women, especially in rural areas and small cities and towns, don't have access to education. Often girls are not encouraged to take up STEM and are pushed to take up other subjects. There is no dearth of entrepreneurial spirit but the lack of education, exposure, finance, and opportunities hold women back. "With higher education, women experience an increase in self-confidence and become more capable of recognising their strengths," said R K Panigrahi, Director, MSME Development Institute.

While the schemes and programmes undertaken by the ministry provide and facilitate technology support and upgradations, infrastructural facilities, skill training, and other such benefits, there is a strong need for education. Education will not only help build women's confidence to take up the challenges of entrepreneurship but also help them to grow in their career path.

The other challenge the government needs to address is to stop putting women in the SC/ST category. Not only does it divide the resources but inevitably puts women in a bracket that is considered backward and lowly. Gender parity will help engulf this divide.

Meanwhile, women need to support and stand up for each other and stop thinking for themselves as lesser than anyone. They need to push the boundaries to tread on less travelled roads and break the stereotypes that hold them back.

CHINA
Source: www.chinadaily.com.cn
Author: Jing Shuiyu

The 2017 China International Fair for Investment & Trade (CIFIT) will take place during September 18 – 21 in Xiamen, with a number of networking events tailored for BRICS countries and economies linked to the Belt and Road Initiative, said its organizers on Wednesday.

The annual fair is a key international platform with the purpose of promoting two-way investment with the world's second largest economy.

As the southeast city will host the 9th BRICS Summit in early September, its deputy mayor Han Jingyi, said one of the fair's major goals is to promote economic cooperation and exchange among global investors and members of the so-called BRICS club – Brazil, Russia, India, China, and South Africa, by setting up specialized pavilion, seminars and networking events.

Han made the remarks at a networking conference on Wednesday, which attracted more than 250 businessmen and government officials from both home and abroad.

Another eye-catching innovation of the 2017 CIFIT forum, according to Han, is planned around the Belt and Road Initiative. About 30 to 50 countries and regions along the two trading routes were invited to the event.

Georgia has confirmed to be the guest of honor of this year's CIFIT. Located at the crossroads of Western Asia and Eastern Europe, the country is considered to be a key gateway along the Belt and Road economies.

The exhibition space will cover 100,000 square meters, including 4,300 booths set up for cross border investment, according to the committee.

The four-day fair is expected to welcome overseas visitors from government institutions, investment promotion agencies and multinationals from more than 100 countries and regions, as well as over 50,000 business professionals and government officials from over 300 cities in China.

Sun Zhenyu, former vice-minister of the Ministry of Commerce, said on the conference that as one of the most important investment platform, CIFIT forum has witnessed the fruits of reform and opening up for decades.

Data from the Ministry of Commerce showed China outbound direct investment surged by 44.1 percent year on year to $170 billion in 2016.

CHINA
Source: www.unido.org
Author: Zhen Wang

SHANGHAI, 27 March 2017 – The United Nations Industrial Development Organization (UNIDO), in cooperation with Shanghai Academy of Social Sciences (SASS), today held an expert meeting to discuss the development of e-commerce in BRICS.

The meeting was part of UNIDO's interregional project implemented with technical support from China to further cooperation between small and medium-sized enterprises (SMEs) in China and the other BRICS countries - Brazil, Russia, India and South Africa - in the field of e-commerce. The project promotes inclusive and sustainable industrial development in the BRICS states.

The participants decided to encourage government bodies and business associations to establish a BRICS e-commerce industry alliance. They also endorsed a strategy and policy recommendations on improving the standardization of e-commerce and trade in BRICS.

Addressing the meeting, Wang Zhan, President of SASS, expressed his organization's eagerness to take the lead in the joint study report of policy framework on e-commerce of BRICS in cooperation with various stakeholders.

Specialists from BRICS presented their national study reports on e-commerce development to the audience, which included renowned scientific experts from China, the European Union and the United Kingdom. The participants agreed that promoting cross-border trade through e-commerce development is vital for modern economies. They highlighted the opportunities that e-commerce provides for SMEs to overcome logistical and geographic challenges and improve their access to markets.

UNIDO is one of the largest providers of trade-related development services, offering focused and neutral advice and technical cooperation in the areas of competitiveness, industrial modernization and upgrading, compliance with international trade standards, and on the opportunities provided by Industry 4.0. As part of its work, the Organization is going to initiate a business model of Business to Business (B2B) and Customer to Manufacture (C2M) within the policy framework of the BRICS e-commerce.

India
Source: bureaucracytoday.com

The Second Annual Meeting of the New Development Bank (NDB) started today in New Delhi with the Meeting of its Board of Directors.

The three day Annual Meeting of NDB will be held from March 31 to April 2.

Five Memorandum of Understanding (MOUs) are likely to be signed, one each with European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), Asian Infrastructure Investment Bank (AIIB), Eurasian Development Bank (EDB) and International Investment Bank (IIB), Bureaucracy Today has learnt.

The New Development Bank, formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states.

NDB was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.

The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players.
The Bank will use various financial instruments to efficiently meet the demands of member states and clients.

INDIA
Author: Rumi Aijaz
Source: ORF

Urbanisation creates as many opportunities for societies as it does a gamut of challenges. Globally, more and more nations are pondering the concept of a 'smart city,' and examining the suitability of applying so-called smart solutions to the multifaceted problems of cities. This publication documents the experiences of BRICS countries with specific methodologies and reform measures they have employed to make their cities smart and liveable. The papers cover a wide range of subjects, including policy and governance, research methods, financial resources, people's participation, public safety, public services, and environmental sustainability. BRICS nations are home to nearly 40 percent of the world's urban population. Timely interventions based on knowledge shared will be instrumental in achieving this ambitious goal of making cities smart.