The BRICS Development Bank and Challenges for development financing in BRICS—Issues for Consideration

The establishment of the BRICS Development Bank represents an international mechanism of innovation in the field of international development financing and enhances BRICS as an emerging political and economic power. However, the BRICS Contingent Reserve Arrangement is currently insufficient to cope with any economic crises. It is therefore crucial that BRICS Development Bank’s infrastructure projects feature long-term investment and aim for higher return rates to cushion the ailing economies of the BRICS countries. This is possible through national, regional and multilateral development banks financial arrangements. It is argued that the BRICS Development Bank must link infrastructure and industrialisation to avoid economic growth as a proxy for development. Unlike the Bretton Woods institutions, such as the World Bank and the International Monetary Bank, social aspects must be recognised when infrastructure development projects are undertaken and be sensitive to forced displacement of people and increasing levels of inequality and poverty. Hence, the BRICS Development Bank must strike a balance between not only efficiency and return on investment, but also economic growth and development and these checks and balances must be measured and monitored at every stage. This chapter draws data primarily from qualitative studies to inform these discussions and the compelling conclusion made.