Meeting of BRICS leaders
Heads of state and government of BRICS countries (Brazil, Russia, India, China and South Africa) met ahead of the G20 summit.
Following the meeting, the leaders issued a statement recognizing the slow rate of economic recovery, high level of unemployment in some countries, and current challenges and vulnerabilities in the global economy, particularly in developed nations.
The BRICS leaders once again voiced the concerns they had expressed at the March summit in Durban, pertaining to the unexpected negative consequences of certain developed nations’ “untraditional” monetary policy. They stressed that the final standardisation of monetary policies should be effectively and thoroughly calibrated and clearly explained.
The BRICS leaders also expressed concern regarding the suspension of the International Monetary Fund’s reform process and confirmed the need to immediately implement the 2010 IMF quota and governance structure reform and conduct the next overall quota review by January 2014 in accordance with agreements reached at the G20 in Seoul, to ensure the Fund’s credibility, its legitimacy and efficacy.
In addition, the leaders expect that the 9th WTO Ministerial Conference, which will be held in December 2013, will serve as a foundation for the successful and balanced conclusion of the Doha Round negotiations.
The leaders welcome the steady progress in establishing the New Development Bank and Currency Reserve Pool under BRICS leadership.
As far as the New Development Bank is concerned, the talks achieved progress concerning its structure, share capital participation, membership and governance. Its initial stated capital is $50 billion.
Consensus was reached on the Currency Reserve Pool concerning the overall and operative issues pertaining to its creation. In accordance with the agreements reached at the BRICS summit in Durban, South Africa, the initial Pool will be worth $100 billion. The nations’ commitments will be as follows: $41 billion from China; $18 billion each from Brazil, India and Russia; and $5 billion from South Africa.
In light of the progress achieved on both initiatives, the leaders expect significant results ahead of the next BRICS summit.
In addition, they welcomed the first meeting of the BRICS Business Forum, which was recently held in Johannesburg, South Africa, and supported the business community in broadening contacts and cooperation. The leaders also took into account the most recent events within the global economy and especially noted the need to continue cooperating within the BRICS framework.
Moreover, the leaders of Brazil, India, China and South Africa congratulated Russia on successfully chairing the G20 in 2013 and expressed their support of the fact that Russia’s Presidency focused attention on development issues.