Brics flay West over monetary policy, IMF

2012-03-29 11:43

New Delhi - Leaders of the Brics group of emerging market nations pressed Western powers to cede more voting rights at the International Monetary Fund (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 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 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 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 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.

  • Gordon - 2012-03-29 13:26

    I think the BRICS want voting rights so that they can pillage the IMF and setup their own fund. At least Africa is teaching the other BRICS countries how to operate.

      Kolobe - 2012-03-29 18:10

      you need to get off whatever you are smoking

  • Trevor Kahn - 2012-03-29 13:56

    First of all there is no such thing as BRICS!! It is just called BRIC! I am a South African living in the UK and they never include South Africa because it's not part of the up coming international markets. The SA Government once again trying to make themselves look important . The only in which we are the same as Brazil, Russia, India and China is that our government I corrupt and full of dictators.

      GrandMasterFlasch - 2012-03-29 15:03

      @ Trevor-i can say with absolute confidance that you're an idiot

      Africa21stcentury - 2012-03-29 17:42

      @Trevor, And while you there, tell your friends, that there are lions walking around in the centre of JHB!!! Shame, some travel half the world, and still stay ignorant!!!!!

  • Trevor Kahn - 2012-03-29 16:17

    Grand : prove me wrong... Do you live in europe? follow international news...? They NEVER EVER refer to BRICS it's always BRIC...and you cannot honestly tell me our government is not corrupt??? That will show that you are the all your confidence is just a showing of lack of intelligence.

      GrandMasterFlasch - 2012-03-29 17:32

      Trevor:You might wanna check the latest batch of articles posted by the BBC to supplement for your lack of knowledge or ignorance which ever way you want to take it. FYI I do follow international news

      Kolobe - 2012-03-29 18:09

      trevor you are an idiot of note.are you doing child care that side?

      Africa21stcentury - 2012-03-29 18:36

      When did you leave SA ??.............1953 ??

      Blip - 2012-03-29 20:53

      Trevor's right.

      Africa21stcentury - 2012-03-29 21:16

      Don't worry Blib, looking at this site, even if you make a dumb remark, you will still get a few "thums up" Keep it up !!

  • David - 2012-03-29 18:41

    Zuma lecturing the developed world on economics and financial management. Next it will be brain surgery-crazy stuff.

  • Trevor Kahn - 2012-03-30 17:02

    Can you people not read?? A sign once again of South African education system. Go look at the BBC article you referred to... It refers to BRIC's not BRICS,

  • Trevor Kahn - 2012-03-30 17:10

    AFRICA21st: your arguments are juvenile... You can only comment on what people think of SA once you live in that country... They love SA but don't see it as an up and coming economy giant in the world... maybe in Africa yes. they feel there is too much corruption which we all know there is. You just need to read news24 everyday to keep up with the propaganda the government feeds South Africans.

      Africa21stcentury - 2012-03-30 17:52

      @Trevor, The group consists of Brazil-Russia-India-China-South Africa, with South Africa being its 5th FULL member. Now, if you want to call it BRIC, its fine, it really is !! And for you to say, now that you live in the UK, and so, know more than anyone here, whats going on in that part of the world, is just plain silly. Maybe ,50 years ago, but not in 2012, with satalite TV, Internet, and all kinds of media readily available!! I will go further, and say that anyone who wants to inform him/her self about a country, notwithstanding where one lives, could know more about that country , than possibly 80 % of its inhabitants. And lastly, may I suggest the following; When you live in SA, it is not only your right , but also your duty, to voice your opinion, with whatever you think is wrong with our country! But when you travel, talk good about us, you don't have to lie, but just show the possitive side of our great country. Also this is not only your right, but your duty !!!!

  • Trevor Kahn - 2012-03-31 23:43

    AFRICA: 99% of the South African people that I know that live in the UK ( which is a large community) only speak positively of South Africa. You have never met a greater patriot than a SA'n that lives outside of of SA. you cannot comment on how SA is viewed by other nations if you don't live there. We are lucky because we get to view SA in 2 different lights and can see through the propaganda that you are fed in SA by the ruling party. You can write all the words you want about me and question my patriotism... but you rely on us to change people's minds on visiting SA. Countries outside of Africa DO NOT view SA as an up coming financial giant FACT! whether you like it or not.

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