BRICS emerging powers sought a deal on setting up a development bank that would rival Western-backed institutions, trying to iron out significant differences ahead of a leaders’ summit in Durban.

The grouping of Brazil, Russia, India, China and hosts South Africa are racing to elaborate on proposals for an infrastructure-focused lender that would challenge seven decades of dominance by the World Bank.

Just hours before leaders kick off the summit at 17:30 GMT on Tuesday, finance ministers were still working to agree key elements of the plan.

Disputes remain over what the bank will do, with each side trying to mould the institution to their foreign or domestic policy goals and with each looking for assurances of an equitable return on their initial investment of about $10bn.

Failure to secure a deal would be a major embarrassment for many of the participants and would play into the hands of those who argue that the BRICS have little to bind them together.

Meanwhile, China and Brazil signed an agreement on Tuesday to do billions of dollars of trade in their local currencies, as the BRICS nations work to lessen their dependence on the US dollar and euro.

Finance ministers Lou Jiwei of China and Guido Mantega of Brazil signed
the deal, amid the continuing euro crisis and little signs of growth in the West.

Click here for the full story.

BRICS FACTS

Economic data shows that the grouping of Brazil, China, India, Russia and South Africa now account for 25 percent of global GDP and 40 percent of the world’s population.

China has become the informal leader of the group. With a GDP of $8.25 trillion in 2012, the IMF
estimates that the Chinese economy will climb by a whopping 8.2 percent in 2013.It remains the globe’s most-populated country, with 1.34 billion inhabitants.

Brazil: With a GDP of $2.425 trillion in 2012, Brazil is the world’s seventh largest economy. It holds only a modest place in world trade activity, however, and experienced sluggish growth of one percent last year.

Russia: Ranking ninth on the list of the world’s biggest economies, Russia accumulated a GDP of $1.953 billion in 2012, boosted mainly by its gas exports, making it the world’s eighth largest exporter.

India: Despite its population of 1.24 billion, India remains a smaller player among the world’s economies, falling into a 10th place with a GDP worth 1.946 trillion.

South Africa: Smallest of the BRICS economies is South Africa. Placing 41st world exporters, the country has a GDP of $390 billion and a population of 50.5 million.