BRICS united

Five lead­ers, meet­ing in­for­mally ahead of sum­mit in Hangzhou, pur­sue eq­uity for de­vel­op­ing coun­tries, emerg­ing economies

China Daily (USA) - - FRONT PAGE - By LI XIAOKUN in Hangzhou lix­i­aokun@chi­

Lead­ers of the fi ve BRICS coun­tries urge the In­ter­na­tional Mon­e­tary Fund to re­flects the “sta­tus of emerg­ing mar­kets and de­vel­op­ing coun­tries”.

Lead­ers of BRICS coun­tries on Sun­day urged the In­ter­na­tional Mon­e­tary Fund to re­as­sign quota and vot­ing rights to en­sure that the IMF “fairly” re­flects the “sta­tus of emerg­ing­mar­kets and de­vel­op­ing coun­tries”.

The lead­ers — rep­re­sent­ing Brazil, Rus­sia, In­dia, China and South Africa, made the call dur­ing an in­for­mal meet­ing ahead of the G20 Sum­mit. The five coun­tries are also mem­bers of the G20.

In­dian Prime Min­is­ter Naren­dra Modi presided over the meet­ing. In­dia holds the ro­tat­ing chair­man­ship of the BRICS or­ga­ni­za­tion.

“The lead­ers stressed … that the cur­rent quota of the IMF failed to re­flect the global eco­nomic sit­u­a­tion,” ac­cord­ing to a state­ment is­sued af­ter the meet­ing.

The lead­ers “ex­pect mem­bers of the G20 and the IMF to work to­gether to in­crease quota sources of the IMF, and reeval­u­ate quota and vot­ing rights to en­sure that they fairly re­flect the sta­tus of emerg­ing mar­kets and de­vel­op­ing coun­tries.”

They called for the IMF to fin­ish its 15th gen­eral re­view of quo­tas be­fore the an­nual con­fer­ence in 2017 and present a new for­mula for quo­tas. The quota for­mula is a weighted av­er­age of GDP and other fac­tors, such as open­ness and re­serves.

The IMF de­cided in 2010 to di­vert 6 per­cent­age points of quo­tas to emerg­ing mar­kets and de­vel­op­ing na­tions. Af­ter the re­as­sign­ment, the top 10 IMF mem­bers, by quota, are the US, Ja­pan, China, Ger­many, France, Bri­tain, Italy, In­dia, Rus­sia and Brazil. The plan took ef­fect in Jan­uary.

How­ever, Ruan Zongze, ex­ec­u­tive vice-pres­i­dent of the China In­sti­tute of In­ter­na­tional Stud­ies, said the ad­just­ment is not enough. “For ex­am­ple, Ja­pan holds the sec­ond big­gest quota,” Ruan said. “But last year, China’s GDP dou­bled that of Ja­pan.”

Pres­i­dent Xi Jin­ping said BRICS mem­bers should en­hance co­or­di­na­tion to have emerg­ing-mar­ket economies and de­vel­op­ing coun­tries play a big­ger role in in­ter­na­tional af­fairs.

The five coun­tries should also work to safe­guard the po­si­tion of mul­ti­lat­eral trade as the key chan­nel, jointly build an open world econ­omy and op­pose all kinds of pro­tec­tion­ism and ex­clu­sion­ism, to en­sure that all coun­tries will be equal in their devel­op­ment rights, op­por­tu­ni­ties and rules, Xi said.

He also called on mem­bers to drive the BRICS’ New Devel­op­ment Bank to im­ple­ment the first batch of projects and boost the bank’s man­age­ment and fi­nanc­ing ca­pa­bil­i­ties.

The bank should pro­mote re­search on the BRICS’ con­tin­gent re­serve ar­range­ment, a pro­vi­sion for sup­port in case of short-term bal­ance-of-pay­ment pres­sures, to en­hance fi­nan­cial se­cu­rity for BRICS coun­tries, he said.

Dur­ing Sun­day’s meet­ing, the lead­ers also strongly con­demned re­cent ter­ror­ist at­tacks around the globe. They vowed to con­sol­i­date in­ter­na­tional anti-ter­ror co­op­er­a­tion and called on the United Na­tions to play a cen­tral role in the fight.

The meet­ing came days af­ter a sui­cide car bomb at­tack on China’s em­bassy in Bishkek on Tues­day, which in­jured three peo­ple and killed the at­tacker.

The in­for­mal meet­ing gave BRICS lead­ers a chance to dis­cuss and fine-tune ma­jor de­ci­sions be­fore they are an­nounced at the 8th BRICS Sum­mit in mid-Oc­to­ber in Goa, In­dia, ac­cord­ing to Swaran Singh, a pro­fes­sor at Jawa­har­lal Nehru Univer­sity in New Delhi.

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