Brazil, Russia, South Africa, India and China – the leaders of all five emerging market economies met on the margins of the BRICS Summit in China to discuss their role in world affairs, energy and food security challenges, climate changes and hardening commodity prices.
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Sidelining US Dollar!
Furthermore, the role of dollar in global finance and commerce hit a trough, with the BRICS club of five developing nations signing an agreement to extend credit and grants in their own currencies, in a bid to overcome deficiencies of current monetary order; thus bypassing dependence on the predominant US dollar.
This is what Indian Prime Minister Manmohan Singh had to say:
“Our designated banks have signed a framework agreement on financial cooperation which envisages grant of credit in local currencies and cooperation in capital markets and other financial service.”
Growing BRIC by BRIC!
The group of world’s fastest growing economies also called for changes to the global financial system, urging IMF to expand its use of Special Drawing Rights. At the same time, they also insisted to push open the top positions in the World Bank and IMF to reflect the changes in the world economy and representation of emerging markets.
Alleviating disputes with China!
For the PM Manmohan Singh, the tour started off on a right note with China’s decision to drop its stapled visa policy for Indians belonging to J&K, just ahead of the summit. Both the countries have been on divergence with each other on visa policy for residents of so-called disputed regions and growing bilateral trade deficit issues.
Allaying fears of Nuclear disaster!
The recent Fukushima nuclear power plant accident in Japan had raised concerns over safety issues and feasibility of nuclear energy for the mankind. With this regard, India and Russia has agreed to review safety measures and incorporate additional features in reactor technology and related fields for their ongoing nuclear cooperation programs.
Wanted: Cease-fire at Libya!
Among other concerns, the five big emerging powers also expressed misgivings about turbulence in the Middle East and NATO-led air strikes in Libya, calling for an immediate cease-fire in Libya which has led to humanitarian crisis in the country and added global uncertainty.
Can BRICS economies grow strength hand-to-hand from hereon?