Planned BRICS bank to complement World Bank

But intends to break the grip of Americans, Europeans and Japanese in major lending institutions.

Indian Finance Minister P. Chidambaram said the proposed BRICS bank will not compete with Western-dominated institutions on the world stage.

The BRICS bank is seen as a way of addressing the US$4.5 trillion in infrastructure spending the BRICS are estimated to need over the next five years. BRICS is an acronym for the rapidly developing economies of to Brazil, China, India, Russia and South Africa.

"The BRICS bank will not be a competitor for the World Bank or the ADB. It will complement the World Bank or the ADB," Chidambaram said.

"Why do we need the bank? Because, the funds that are now available through the existing multilateral institutions are insufficient. The World Bank, the ADB, provide funds but (they are) insufficient," he said.

He noted the IMP and the World Bank face governance problems and reforms in these institutions have been considerably delayed as a result. Plans to boost the capital of these institutions have also been set back.

Top jobs in the World Bank and the International Monetary Fund have been historically occupied by Americans and Europeans, while every ADB president has been Japanese since its founding in 1966.

Emerging nations, however, have become increasingly critical over US and European control of these institutions as their own economic power and global influence expands.