admin“We stress that the ongoing effort to increase the lending capacity of the IMF will only be successful if there is confidence that the entire membership of the institution is truly committed to implement the 2010 reform faithfully.”
Promised changes to voting rights at the IMF have yet to be ratified by the United States, adding to frustration over reform of the G7 and the United Nations Security Council, where India and Brazil have been angling for years for permanent seats.
The Brics leaders also accused rich countries of destabilising the world economy five years into the global financial crisis.
“It is critical for advanced economies to adopt responsible macroeconomic and financial policies, avoid creating excessive global liquidity and undertake structural reforms to lift growth that creates jobs,” they said in a joint declaration.
The rich world’s monetary policy “brings enormous trade advantages to developed countries, and results in unfair obstacles for other countries,” Brazil’s President
Dilma Rousseff said at the summit.
Security was tight in New Delhi, days after an activist set himself on fire in protest at Chinese rule in Tibet, dying from his injuries just hours before China’s President Hu Jintao arrived. Police grappled with small groups of pro-Tibet protesters.
The declaration said the crisis over Iran’s nuclear programme should be resolved diplomatically and should not be allowed to escalate. It also recognised the right of Iran to pursue peaceful nuclear energy.
“We agreed that lasting solution to the problems in Syria and Iran can only be found through dialogue,” Indian Prime Minister Manmohan Singh said.
The five Brics nations, which collectively account for nearly half the world’s population and a fifth of its economic output, signed an agreement to extend credit facilities in their local currencies, a step aimed at reducing the role of the dollar in trade between them.
They also agreed to examine in greater detail an Indian proposal to set up a Brics-led South-South Development Bank, funded and managed by the Brics and other developing countries.
“We have directed the finance ministers to examine the proposal and report back at the next summit,” Singh said.
Other moves to bring their economies closer together include the launch today of benchmark equity index derivatives allowing investors in one Brics country to bet on the performance of stock markets in the other four members without currency risk.
The indexes will be cross-listed on their stock exchanges from today.
Meanwhile, Chinese President Hu Jintao yesterday called on Brics members to seek ways to promote the grouping’s cooperation to a new level, saying cooperation among them now “stands at a new starting point”.
Speaking at the plenary session of the fourth summit of Brics, which groups Brazil, Russia, India, China and South Africa, the Chinese leader explained China’s position on global governance, sustainable development and Brics cooperation.
“The Brics countries are an integral part of the big family of emerging markets, and developing countries, and we are forces for world peace and common development,” he said.
“This is an important historical period,” he said, adding “many emerging markets and developing countries have seized the opportunity to accelerate development.”
“They have not only changed the lives of over three billion people, but also become an increasingly important force for South-South and North-South cooperation,” he noted.
Hu also said “the growth of developing countries will raise the overall productivity of the human society, and help to make the global economy more balanced, international relations more reasonable, global governance more effective and world peace more durable.”
The president put forward a four-point proposal on Brics cooperation, saying he was convinced that with further improvement of its mechanism, Brics cooperation will produce more fruitful results.
“This will not only help enhance the well-being of our people, but also contribute to world peace, stability and prosperity,” he said.
The Chinese president also said China has made well-recognised achievements in development since the adoption of the policy of reform and opening up more than 30 years ago.
“China’s rapid growth has not only enabled the 1,3 billion Chinese people to lead a better life, but also offered development opportunities for other countries,” he said.
No matter how the international situation may evolve, China will always hold high the banner of peace, development and cooperation and remain committed to the path of peaceful development and the win-win strategy of opening up, Hu said.
While pursuing its own development, China will work for common development of the whole world, firmly support Brics cooperation and always stand together with developing countries, he added.
The summit comes at a crucial moment for the bloc, as the global economic recovery is still struggling against fragile financial systems, high public and private debt, high unemployment and the rising price of oil. Pressing issues, such as climate change, food security and energy security are also posing challenges to the world.
With the theme of “Brics Partnership for Global Stability, Security and Prosperity,” the Brics leaders are expected to discuss “political, economic and social issues of mutual and international interest,” according to the summit host India.
The creation of an investment bank, or “Brics Bank,” the grouping’s first institution, was also on the agenda. The summit concluded with a Delhi Declaration on major world and regional issues.
Bric initially grouped Brazil, Russia, India and China, but was enlarged last year to include South Africa and renamed as Brics. The first Brics summit was held in 2009.
With roughly 42 percent of the world’s population, Brics has a combined nominal GDP of $13,6 trillion in 2011, or 20 percent of the world’s total, according to estimates by the International Monetary Fund.
The bloc aims to expand its inter-trade from 230 billion dollars last year to 500 billion dollars by 2015. — Al Jazeera/Xinhua.
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