Avoid disruptions to trade, Manmohan tells BRICS Summit
(From left) Brazilian President Dilma Rousseff, Russian President Dmitry Medvedev, Prime Minister Manmohan Singh, Chinese President Hu Jintao and South African President Jacob Zuma at the 4th BRICS Summit in New Delhi on Thursday. Photo: PTI India on Thursday pitched for avoiding political disruptions that create volatilities in global energy markets affecting trade flow as the BRICS Summit began here to discuss ways to enhance intra-BRICS trade and review the situation in the region. Addressing the fourth BRICS Summit, Prime Minister Manmohan Singh also said that the grouping has agreed to examine in greater detail a proposal to set up a South-South development bank, funded and managed by BRICS and other developing countries. He also urged member countries to speak in one voice on key issues such as UNSC reforms.
The Summit is being attended by Brazilian President Dilma Roussef, Chinese president Hu Jintao, South African president Jacob Zuma and Russian president Dmitry Medvedev besides Dr.Singh. The BRICS (Brazil, Russia, India, China and South Africa) represent over 40 per cent of the worlds population and the leaders of the five countries discussed ways to enhance intra-BRICS trade and review the situation in the region. We must avoid political disruptions that create volatilities in global energy markets and affect trade flow... We must ensure policy coordination to revive economic growth, he said. On UNSC reforms, Dr. Singh suggested that BRICS countries should speak in one voice on issues such as reforms of the international body. He also said in their restricted session, the grouping also discussed the ongoing turmoil in West Asia and agreed to work together for a peaceful resolution of the crisis. Touching upon the issue of terrorism, Dr. Singh said the countries should enhance cooperation against terrorism and other developing threats such as piracy, particularly emanating from Somalia.
BRICS to set up joint bank, call for dialogue on Iran & Syria
PM Manmohan Singh addresses BRICS summit
NEW DELHI: Seeking to reinforce their growing economic heft with diplomatic clout, the BRICS grouping Thursday pitched for a bigger say in global governance institutions, including the UN and the IMF, and told the West that dialogue was the only way to resolve the Iranian nuclear issue and the Syria crisis. Brazil, Russia, India, China and South Africa, which comprise nearly half the world's population and a growing share of global GDP, signed two pacts to spur trade in their local currencies. They also agreed to set up a working group for a joint development bank to promote mutual investment in infrastructure. Prime Minister Manmohan Singh of India and Presidents Hu Jintao (China), Dmitry Medvedev (Russia), Dilma Rousseff (Brazil) and Jacob Zuma (South Africa) ended the fourth BRICS summit by renewing the pitch for reforming global governance institutions and closer coordination on global issues. The five leaders stressed on the restructuring of the world order to accommodate emerging economies and developing countries and for promoting sustained and balanced global economic growth. "While some progress has been made in international financial institutions, there is lack of movement on the political side. BRICS should speak with one voice on important issues such as the reform of the UN Security Council," said Manmohan Singh, the summit host. "We are committed to stepping up exchanges with other countries on global economic governance reforms and increasing representation of developing countries," said Hu.
The BRICS include Russia and China, two veto-wielding members of the UN Security Council, and three aspiring members for a permanent seat - India, Brazil and South Africa. The BRICS leaders also pitched for greater voting rights for developing countries in the IMF and voiced disappointment with the West over the slow pace of the quota reforms. In a fresh assertion, BRICS asked the West to implement the 2010 governance and quota reform before the 2012 IMF/World Bank annual meeting, as well as the comprehensive review of the quota formula to better reflect economic weights. They asked for enhancing the voice and representation of emerging market and developing countries by January 2013, followed by the completion of the next general quota review by January 2014. In a signature step, the BRICS decided to create their first institution in the form of a BRICS-led South South Development Bank that will mobilise "resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries", the BRICS' Delhi Declaration said. The leaders directed their finance ministers "to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back by the next summit". The development banks of the five countries signed two pacts, including a master agreement on extending credit facility in local currency and BRICS multilateral letter of credit confirmation facility agreement, which could help scale up bilateral trade from $230 billion to $500 billion. Challenging the West's hegemony of the Bretton Woods institutions, the BRICS leaders welcomed the candidatures from the developing world for the position of the president of the World Bank and backed "an open and merit-based process" for selection of the heads of the World Bank and IMF. Contesting the West's narrative, the five countries warned the West against allowing the Iran situation to escalate into a conflict and said dialogue was the only way to resolve the Iranian and Syria issues. "We agreed that a lasting solution in Syria and Iran can only be found through dialogue," Manmohan Singh said. "The situation concerning Iran cannot be allowed to escalate into conflict, the disastrous consequences of which will be in no one's interest," said the declaration, in a veiled allusion to the speculated plan by the US and Israel to target Iran's nuclear facilities. The declaration saw the leaders voicing "deep concern" over Syria as they called for "an immediate end to all violence and violations of human rights in that country", backing a Syrianled inclusive political process.
BRICS to set up joint bank, for dialogue on Iran, Syria
From left to right, Brazil's President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh, Chinese President Hu Jintao and South African President Jacob Zuma join hands during the group picture for the BRICS 2012 Summit - AP Related Articles
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Seeking to reinforce their growing economic heft with diplomatic clout, the BRICS grouping on Thursday pitched for a bigger say in global governance institutions, including the UN and the IMF, and told the West that dialogue was the only way to resolve the Iranian nuclear issue and the Syria crisis. Brazil, Russia, India, China and South Africa, which comprise nearly half the world's population and a growing share of global GDP, signed two pacts to spur trade in their local currencies. They also agreed to set up a working group for a joint development bank to promote mutual investment in infrastructure. Prime Minister Manmohan Singh of India and Presidents Hu Jintao (China), Dmitry Medvedev (Russia), Dilma Rousseff (Brazil) and Jacob Zuma (South Africa) ended the fourth BRICS summit by renewing the pitch for reforming global governance institutions and closer coordination on global issues. Lack of movement on the political side The five leaders stressed on the restructuring of the world order to accommodate emerging economies and developing countries and for promoting sustained and balanced global economic growth. "While some progress has been made in international financial institutions, there is lack of movement on the political side. BRICS should speak with one voice on important issues such as the reform of the UN Security Council," said Manmohan Singh, the summit host. "We are committed to stepping up exchanges with other countries on global economic governance reforms and increasing representation of developing countries," said Hu. The BRICS include Russia and China, two veto-wielding members of the UN Security Council, and three aspiring members for a permanent seat - India, Brazil and South Africa. The BRICS leaders also pitched for greater voting rights for developing countries in the IMF and voiced disappointment with the West over the slow pace of the quota reforms. Creation of a bank In a fresh assertion, BRICS asked the West to implement the 2010 governance and quota reform before the 2012 IMF/World Bank annual meeting, as well as the comprehensive review of the quota formula to better reflect economic weights. They asked for enhancing the voice and representation of emerging market and developing countries by January 2013, followed by the completion of the next general quota review by January 2014. In a signature step, the BRICS decided to create their first institution in the form of a BRICS-led South South Development Bank that will mobilise 'resources for infrastructure and sustainable
development projects in BRICS and other emerging economies and developing countries', the BRICS' Delhi Declaration said. The leaders directed their finance ministers 'to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back by the next summit'. The development banks of the five countries signed two pacts, including a master agreement on extending credit facility in local currency and BRICS multilateral letter of credit confirmation facility agreement, which could help scale up bilateral trade from $230 billion to $500 billion. Iran, Syria solution only through talks Challenging the West's hegemony of the Bretton Woods institutions, the BRICS leaders welcomed the candidatures from the developing world for the position of the president of the World Bank and backed 'an open and merit-based process' for selection of the heads of the World Bank and IMF. Contesting the West's narrative, the five countries warned the West against allowing the Iran situation to escalate into a conflict and said dialogue was the only way to resolve the Iranian and Syria issues. "We agreed that a lasting solution in Syria and Iran can only be found through dialogue," Manmohan Singh said. "The situation concerning Iran cannot be allowed to escalate into conflict, the disastrous consequences of which will be in no one's interest," said the declaration, in a veiled allusion to the speculated plan by the US and Israel to target Iran's nuclear facilities. The declaration saw the leaders voicing 'deep concern' over Syria as they called for 'an immediate end to all violence and violations of human rights in that country', backing a Syrianled inclusive political process. China and Russia had earlier voted against the US and Arab League-backed UN resolution on grounds that it amounted to a regime change, while India had supported the resolution.
BRICS flay West over IMF reform, monetary policy
Reuters Leaders of the BRICS group of emerging market nations pressed Western powers to cede more voting rights at the IMF this year and flayed the rich world's reflationary monetary policies for putting global economic stability in jeopardy. "This dynamic process of reform is necessary to ensure the legitimacy and effectiveness of the
Fund," Brazil, Russia, India, China and South Africa said in a joint declaration after their one-day summit in New Delhi. "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 UN Security Council, where India and Brazil have been angling for years for permanent seats. The BRICS leaders also accused rich countries of destabilizing 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 create 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. Iran's nuclear rights The declaration said the crises 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 on Friday 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 Friday.
India
Brics summit of emerging nations to explore bank plan
Leaders of Brics met in India to discuss closer trade links and a new bank Continue reading the main story
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The main emerging economies have met in the Indian capital, Delhi, to look at ways of strengthening their position against Europe and the United States. Brazil, Russia, China, India and South Africa (the Brics group) are proposing an alternative to the World Bank. Leaders of the five nations, which now account for nearly 28% of the global economy, discussed closer trade links. In their joint Delhi Declaration, they also said dialogue was the only route to lasting solutions in Syria and Iran. The summit was held amid Tibetan protests aimed at China's president.
Hu Jintao joined other Brics leaders for the fourth meeting of the bloc of emerging economies. On Wednesday, a Tibetan activist died in Delhi after setting himself on fire two days earlier in protest at Mr Hu's visit. Brics nations' share of the global economy has risen fast in recent years and is expected to continue to grow. Correspondents say they are also growing in diplomatic clout.
Closer economic ties
On Thursday, Dilma Rousseff of Brazil, Dmitry Medvedev of Russia and Jacob Zuma of South Africa joined Indian Prime Minister Manmohan Singh and Mr Hu for hand shakes and a group photograph at the start of the one-day meeting. "The Brics countries have agreed to examine in greater detail a proposal to set up a South-South development bank, funded and managed by the Brics and other developing countries," Mr Singh later said. The Delhi Declaration expressed concern over the current global economic situation, especially in the euro zone. It said the Brics nations were ready to work with the international community to ensure that the world economy was taken forward, and Europe was given the necessary assistance so it could help itself. The meeting also agreed to expand the capital base of the World Bank and other multilateral institutions to ensure global economic stability. But, Mr Singh said that "institutions of global political and economic governance created more than six decades ago have not kept pace with the changing world" and that developing countries needed access to capital. The five nations, in their closing statement, voiced concern about slow reforms and called on the International Monetary Fund to make its surveillance framework "more integrated and evenhanded".
'Unjust policies'
The countries also resolved "to promote greater interaction among the business communities of Brics nations and easier visa facilities for businessmen". Mr Singh said the Brics group must speak with one voice on important issues such as reform of the UN Security Council. President Hu said Brics nations should "enhance co-operation and intensify communication in international trade".
Brazil's Dilma Rousseff said the Brics had become "the most important engines of the world economy in the past few years. Together, we will be responsible for more than half of the foreseen growth for 2012, 56% according to the IMF". She blamed the developed world for hindering other nations with "unjust" monetary policies. Correspondents say the joint development bank is expected to be established along the lines of the World Bank and Asian Development Bank, offering funding outside the current global financial system. The Brics leaders also discussed the volatile situation in Syria and Iran and stressed the "vital importance that stability, peace and security of the Middle East and North Africa holds for the international community". "We call for an immediate end to all violence and violations of human rights" in Syria, the declaration said adding that "the situation concerning Iran cannot be allowed to escalate into conflict, the disastrous consequences of which will be in no one's interest". The Brics nations have radically different economies and political systems and have often struggled to find common ground in the past. But, they have been looking at ways to increase their trade links and decrease dependency on Europe and the United States.
