As a carrier for the development strategy of BRICS，the establishment of the BRICS New Development Bank signals the cooperation in developmental affairs between the five countries has entered a new stage，and this also transcended the traditional South-South cooperation between developing countries. We call it a new type of South-South Cooperation. In the past 10 years，how did the BRICS countries innovate South-South cooperation through the establishment of the New Development Bank？What types of new developmental cooperation concepts belong to the BRICS countries？I think the concept is innovated in these three areas：The first area is “development and cooperation on the basis of respecting sovereignty and mutual benefits. When we talk about South-South cooperation we think about the Asian-African Conference，or the Bandung Conference，in 1955. The Bandung Conference began the history of South-South Cooperation. When we say the spirit of the Bandung Conference built the foundation of South-South Cooperation，we are talking about the two core concepts. One is economic cooperation should be built on the foundation of respecting sovereignty. Respecting sovereignty is that all countries are equal regardless of size，rich or poor. In the language of the BRICS Summit it is “all countries should enjoy due rights，equal opportunities and fair participation in global economic，financial and trade affairs，recognizing that countries have different capacities and are at different levels of development.” The second concept is economic cooperation should be mutually beneficial. If we compare South-South cooperation with South-North cooperation，especially cooperation led by OECD，you will find they differ greatly. South-South Cooperation has achieved brilliantly in the 1960s and 1970s，such as the birth of the Non-Aligned Movement in 1961，the establishment of Group of 77 in 1964 and the declaration and action plan of establishing a new international order passed at the sixth special session of the United Nations General Assembly. But since in the 1980s and 1990s，we heard more about neoliberalism and the Washington Consensus，but South-South cooperation has fallen into a slump.In a new historic period，after we entered the 21st century，thanks to the economic growth of the BRICS countries，there’s a new revival of South-South cooperation. BRICS countries established their own development bank，realizing the actual spirit of south-south cooperation. In the new development bank，a new principle of share allocation is used that’s different from the existing multilateral development banks. The bank follows a principle of equality，instead of allocating share according to GDP. The five countries allocate share equally shows the principle of equality. At the same time，the operation of the bank follows a marketization principle. The Charter talks about a steady operation principle，but in fact it’s a mutually beneficial principle. The principles of quality and mutual benefit are shown in the BRICS new development bank.The second area is “the theory of economic growth first.” There’s a debate in development economics，which is how to promote development of the developing countries？One theory is through economic growth，one theory is through poverty reduction. The theory of economic growth believes development of a developing country is the prime responsibility that country needs to take on，it depends on endogenous economic growth. The biggest bottleneck restriction element to endogenous economic growth is the lack of basic infrastructure. How to help developing countries to improve their infrastructure is what this theory has always advocated. The other theory has a different view，it believes the nature of development is the reduction of the population of the poorest people in the poorest countries，and it doesn’t necessarily have to be realized through economic growth. In many countries the economy might be growing，but the gap between rich and poor is increasing，the poor aren’t benefiting from the economic growth and poverty isn’t reducing. So，this theory advocates direct “poverty reduction，” through point-to-point help to the population in poverty，such as in education，medical care，social security and gender equality.In fact，it’s hard to say which theory is better，the poverty reduction theory or the economic growth theory. The key is which theory’s hypothesis is more suitable to the developing countries’ reality. The poverty reduction theory believes that more private investment needs to be drawn in to invest on infrastructure and multilateral banks should exist from this field，so we can see multilateral banks such as the World Bank or Asian Bank used to have lots of programs concerning infrastructure，but now the programs are focusing more and more on education，medical，etc，and less on infrastructure. However，the economic growth theory believes in many developing countries，because no effective market mechanism has been established，on one hand it’s difficult to attract enough private capital into the field of infrastructure，on the other hand，benefit generated by having multilateral banks focusing on society cannot spread to other fields，cannot turn into economic grow. Therefore，BRICS New Development Bank focuses on infrastructure，emphasizing on economic growth first. This reflects the difference between theories and concepts behind.The last area is “development-oriented global economic governance.” According to UN definition，economic governance means the role global multilateral organizations and processes plays in shaping global economic policies，regulations and rules. What’s the goal and core of global economic governance？In other words，why should we have global economic governance？To developed countries，the goal and core is to popularize the Washington Consensus，promote developing countries to become marketized，liberalized，privatized and rid of government restriction. This can be shown from IMF，World Bank and WTO.IMF requires many developing countries to open up capital market and let capital flow freely，remove restrictions on foreign exchange and uses this as a condition to loan to developing countries. It’s controversial whether this is beneficial to developing countries’ development. The World Bank transited from focusing on programs that help developing countries to focusing on development policies that help developing countries and then to focusing on pushing for governmental changes in developing countries，it became more and more involved in fields such as governance and anti-corruption，public administration and development of civil society，it has become more and more separated from its developmental role. WTO has always made it its goal to push for trade liberalization and doesn’t pay enough attention to the development needs of developing countries. Since the Uruguay Round，developing countries were all dissatisfied towards it and forced WTO to open a new round of negotiations-the Doha Round，demanding to put developing countries’ development benefits first，and called it the Doha Development Round. But a troubling matter is，right now the future of the Doha Development Round is uncertain.What’s different，that the BRICS countries emphasize the goal and core of global economic governance should be helping developing countries to solve their development issues. Developing countries have their own development strategies，the international multilateral organizations and processes should think of a way to respond to their development strategies，instead of changing the policies or changing the governments. This is a concept that’s development-oriented in global economic governance. The New Development Bank established by the BRICS countries does not have additional policies and political conditions in its loan programs and relies on the borrowing country’s own environment and societal standards to evaluate projects，which speeds up the examination and approval process of the projects and can be a real，equal developing partner to developing countries. While the World Bank and Asian Bank transfuses the developed countries’ standard to you through loans，money and projects，the BRICS countries respond to your own standards and take a negotiation process on how to raise your standards and abilities.At the same time，it shouldn’t be overlooked that the nature of the new South-South cooperation has brought challenges to the operation and future development of the new development bank，such as：1. International rating. South-South cooperation means being led by developing countries and this will result in no developed countries to participate，which will reduce capital scale for the bank and will lead to West-led international rating organizations such as Fitch，Standard & Poor’s and Moody’s to have bias on the New Development Bank. At the same time South-South Cooperation means total equality between the five countries，which restricts the abilities to contribute for countries with greater power in the BRICS，and will have a disadvantage for the bank’s rating objectively. 2. Financing cost. Because the bank was misunderstood by the West on the issue of international rating，this would have bad influence on the bank’s financing cost. In 2016，the new development bank issued the first green bond worth 3 billion RMB in the Chinese inter-bank bond market，with the nominal interest rate of 3.07%. in the same year，the three-year bonds worth 500 million SDR issued by the World Bank in China as a trial has a nominal interest rate of 0.49%. 3. expansion. In order to persist on the new style of south-south cooperation，when thinking about expansion，the New Development Bank should choose developing countries that have rather good governing systems，most of whom should be emerging market countries. But this itself is a paradox，because low-income developing countries who wish to receive bank loans have stronger wills to enter the bank，but in the short term，new emerging market countries should receive the priority consideration for bank expansion rather than low-income developing countries.