BRICS want development bank monetary policy and criticize EU and U.S.
The BRICS as a group will not support a candidate for president of the World Bank but progress in the project to create a development bank, criticized the monetary policy of the United States and Europe and called for dialogue with Iran and Syria in the crosshairs of the Western powers.
In their fourth summit meeting on Thursday in New Delhi, presidents Rousseff (Brazil), Dmitry Medvedev (Russia), Hu Jintao (China) and Jacob Zuma (South Africa), with Prime Minister of India, Manmohan Singh, failed to an agreement to support any of the three candidates vying to head the World Bank: a Colombian, an African and an American.
They considered that the selection should be based on “merit” rather than nationality and their willingness to “transform the Bank into a multilateral institution” that “reflects the current economic and political reality.”
With the strength of their economies, which this year will respond by growth of 56% of the global economy and represent a quarter of GDP in the world, the BRICS demanding greater participation in multilateral institutions.
The IMF and World Bank should “reflect the weight of emerging countries in the composition of the contributions of the respective directions,” said Dilma Rousseff, who also called for a reform of the Security Council to accommodate countries like Brazil, India or South Africa.
The presidents of China and Russia, permanent members of the Security Council at that point were limited to “support” the “aspiration” of these three countries to play a greater role in that instance the United Nations.
Participants at the summit, held under the motto of “Association of BRICS for stability, security and global prosperity,” agreed instead on the need for a development bank to “work on issues of infrastructure, innovation, development , science and technology and research. ”
A working group will evaluate the “feasibility and viability” of that project, which would compete with the World Bank. Their findings were presented at the Summit held next year in South Africa. South African President Jacob Zuma, expected that the new institution even see the light at that meeting.
The emerging growth of which has accused the impact of the debt crisis in Europe, attacked the monetary policies of the U.S. Federal Reserve and European Central Bank to recapitalize banks, which have resulted in “excess liquidity” that causes volatile capital flows into their economies.
Nor do they see in the austerity a solution to solve the debt crisis and recommend to the Eurozone to pursue policies to promote growth and employment.
In the field of concrete achievements, the representatives of the banks agreed to extend national development ease credit in local currencies in order to reduce the demand for hard currency for transactions among the BRICS, and the granting of letters of credit to finance exports.
With regard to the conflicts in the Middle East, particularly Syria and Iran, calling for negotiated solutions.
“We agreed that a lasting solution to Syria and Iran can only be achieved through dialogue,” said host and Indian Prime Minister Manmohan Singh.
In the case of Syria, demanded “an immediate halt to all violence and violations of human rights” and the promotion of dialogue that “reflect the legitimate aspirations of all sectors of Syrian society,” as well as respect for “independence, territorial integrity and sovereignty.”
As for Iran, recalled that “can not afford an escalation of the conflict” as the “disastrous consequences” that would result from it “would not benefit anyone.”
The Brazilian president went even further and said that Western sanctions against Iran are “extremely dangerous”. Excluding the effect on the rise in oil prices.
Category: Money
