China Parliament has ratified the creation of BRICS Development Bank. The New Development Bank was conceived as an alternative to Western financial institutions such as the World Bank. The new bank will provide money for infrastructure and development projects in BRICS countries, that is Brazil, Russia, India, China and South Africa.

Each nation will have an equal say in the bank’s management, regardless of GDP size. The agreement has already been ratified in India and Russia. South Africa is expected to present ratification documents in July during a meeting of BRICS countries in the Russian city of Ufa.

Each BRICS member is expected to contribute an equal share in establishing a startup capital of $50 billion, with a goal of reaching $100 billion in capitalization. The BRICS bank will be headquartered in Shanghai, with India presiding as president during the first year, and Russia serving as the chairman of the representatives.

The launch of the BRICS bank is seen as a first step in breaking the dominance of the US dollar in global trade, as well as dollar-backed institutions such as the International Monetary Fund (IMF) and the World Bank, both US-based institutions that BRICS countries have little influence within.

BRICS represents 42 percent of the world’s population and roughly 20 percent of the world’s economy based on GDP, and 30 percent of the world’s GDP based on PPP, a more accurate measure of real economic performance. Total trade between the countries amounts to $6.14 trillion, or nearly 17 percent of the world’s total.