BRICS come together and talk Money, Power, Syria and Iran

[grouchy13]

Today saw the fourth summit of the emerging power bloc BRICS, topics of debate included the formation of a joint banking system, development of opposition to "Western Hegemony" of international bodies and saw dialogue on the Iranian and Syrian questions,

http://en.wikipedia.org/wiki/BRICS

http://timesofindia.indiatimes.com/i...w/12457123.cms

BRICS to set up joint bank, call for dialogue on Iran & Syria

IANS | Mar 29, 2012, 07.12PM IST

PM Manmohan Singh addresses BRICS summit

See photo

NEW DELHI: Seeking to reinforce their growing economic heft with diplomatic clout, the BRICS grouping Thursday pitched for a bigger say in global governance institutions, including the UN and the IMF, and told the West that dialogue was the only way to resolve the Iranian nuclear issue and the Syria crisis.
Brazil, Russia, India, China and South Africa, which comprise nearly half the world's population and a growing share of global GDP, signed two pacts to spur trade in their local currencies. They also agreed to set up a working group for a joint development bank to promote mutual investment in infrastructure.
Prime Minister Manmohan Singh of India and Presidents Hu Jintao (China), Dmitry Medvedev (Russia), Dilma Rousseff (Brazil) and Jacob Zuma (South Africa) ended the fourth BRICS summit by renewing the pitch for reforming global governance institutions and closer coordination on global issues.
The five leaders stressed on the restructuring of the world order to accommodate emerging economies and developing countries and for promoting sustained and balanced global economic growth.
"While some progress has been made in international financial institutions, there is lack of movement on the political side. BRICS should speak with one voice on important issues such as the reform of the UN Security Council," said Manmohan Singh, the summit host.
"We are committed to stepping up exchanges with other countries on global economic governance reforms and increasing representation of developing countries," said Hu.
The BRICS include Russia and China, two veto-wielding members of the UN Security Council, and three aspiring members for a permanent seat - India, Brazil and South Africa.
The BRICS leaders also pitched for greater voting rights for developing countries in the IMF and voiced disappointment with the West over the slow pace of the quota reforms.
In a fresh assertion, BRICS asked the West to implement the 2010 governance and quota reform before the 2012 IMF/World Bank annual meeting, as well as the comprehensive review of the quota formula to better reflect economic weights.
They asked for enhancing the voice and representation of emerging market and developing countries by January 2013, followed by the completion of the next general quota review by January 2014.
In a signature step, the BRICS decided to create their first institution in the form of a BRICS-led South South Development Bank that will mobilise "resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries", the BRICS' Delhi Declaration said.
The leaders directed their finance ministers "to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back by the next summit".
The development banks of the five countries signed two pacts, including a master agreement on extending credit facility in local currency and BRICS multilateral letter of credit confirmation facility agreement, which could help scale up bilateral trade from $230 billion to $500 billion.
Challenging the West's hegemony of the Bretton Woods institutions, the BRICS leaders welcomed the candidatures from the developing world for the position of the president of the World Bank and backed "an open and merit-based process" for selection of the heads of the World Bank and IMF.
Contesting the West's narrative, the five countries warned the West against allowing the Iran situation to escalate into a conflict and said dialogue was the only way to resolve the Iranian and Syria issues.
"We agreed that a lasting solution in Syria and Iran can only be found through dialogue," Manmohan Singh said.
"The situation concerning Iran cannot be allowed to escalate into conflict, the disastrous consequences of which will be in no one's interest," said the declaration, in a veiled allusion to the speculated plan by the US and Israel to target Iran's nuclear facilities.
The declaration saw the leaders voicing "deep concern" over Syria as they called for "an immediate end to all violence and violations of human rights in that country", backing a Syrian-led inclusive political process.
China and Russia had earlier voted against the US and Arab League-backed UN resolution on grounds that it amounted to a regime change, while India had supported the resolution.

Geopoliticaly does BRICS matter, should the consolidation of this body worry the West?

At a time when the EU stares into the abyss over the Euro Crises and the addition of Turkey to the EU is a more realistic conclusion is that Turkey seeks admission to BRICS as an alternative?

I think so, and with the addition of the Turkish into this body it would certainly give the BRICS another large regional power, this would give the BRICS leverage to support each others local interest and reinforce their stated position of breaking "Western Hegemony", while their unique position of having half the worlds population with the worlds economy by 2050 gives the West food for thought

[Exarch]

what does this mean for Iran's banking system now that SWIFT won't work for them now?

[Border Patrol]

I lol at Brazil trying to compete against Western Hegemony. That would be like France trying to compete against it. They for almost all extents and purposes are Western. Just with a poorer population than nations like Denmark.

[Condottiere 40K]

Self-congratulatory society.

[Kitsunegari]

Russia is so out of place here it's pretty comical.

[Exarch]

i wouldnt dismiss the russkies so quickly
they are lean mean killing masheens, with lots of oil and minerals to boot

[white-wolf]

It is miracle even they are sitting at the same table, leaving aside they are a bloc.

[Sadreddine]

Mmmm...perhaps this has something to do with the iranian trade and finance sanctions?

Or with the EU video? Heh...

In any case, interesting development. I hope it prospers.

[Basil II the B.S]

Geopoliticaly does BRICS matter, should the consolidation of this body worry the West?

China and India can't stand each other to begin with.

At a time when the EU stares into the abyss over the Euro Crises and the addition of Turkey to the EU is a more realistic conclusion is that Turkey seeks admission to BRICS as an alternative?

Two completely different things. Comparision doesn't make much sense.

[fkizz]

BRICS are very far from an official coalition, its just a catchy name for a group of big countries that don't meet the demands of first world countries but have a lot of emerging power nonetheless, enough to challenge the ones known as "western powers", Europe and USA (putting geography aside).

Only normal they (the BRICS) don't work with total unity.

[Prosaic Visitant]

The only thing these guys have in common is that they're not Western.

Give it a decade and watch this catchy-named non-alition fracture or remain at the status quo of toothless tiger.

Sorry, but I just don't see four nationalist and competing countries with four different ideologies and no unifying history, culture or identities forming a viable alliance/bloc.

[grouchy13]

The Brics by their nature do not need to share an Ideology, what seems to binding them is economics. Even competing powers like India and China recognize that working in cooperation benefits them more than opposing each other, this is nothing new the same could be said in reference to the relationship between the US and China.

By developing their economies and working towards increasing their mutual power and influence they will inevitably begin to break into area's of Western influence. For example with the coperation between the BRICS nations will no doubt help bring India into the UN security council, a fact further reinforced by the Indians development of SSBN nuclear deterrent. Russia and China will be joined by a friendly nation that they share good economic and diplomatic ties something that may, I repeat may give them an advantage in UN Resolution decisions.

While their may be conflicts of interest between China and India such as sale of Nuclear technology to Pakistan or India's involvement in Tibet or the South China Sea, the afore mentioned possibility of nurturing cooperation would benefit both powers, talk of possible conflicts between the two by the same logic could be applied to Russia who also share a border with China and could become embroiled in border disputes.

I think all the nations within realize that within the global economy their combined stake out shadows that of the West, both in population and economy. The spread of their influence and their position as emerging or defacto regional powers mean they can also manipulate diplomatic and economic interests to their mutual advantage. The possible absorption of Turkey into the bloc only adds to this diverse and interesting blocs formation.

By working together with the common factor between being money, I think may make them potentially more successful than an idealogical alliance, for what is more powerful than the almighty $?, by confusing this as an idealogical alliance is misguided and by believing this will make it fail is folly IMO. I think the BRICS know they have time on their side they can develop their economies in unison knowing the West is emerging from a economic dark age following the recent monetary disasters, the field is in effect levelled they can play the long game and potentially emerge stronger than Western markets, this may see them achieve their own stated goal of breaking Western Hegemony, food for thought at least

[Mr. Crow]

again the ants and the elephant, in this case the elephant being the US, and the ants being somewhat bricy,

come on, south africa? post apartheid south Africa is a disaster, Rusia? Rusias economy is smaller than Mexicos,

[YukonTrooper]

again the ants and the elephant, in this case the elephant being the US, and the ants being somewhat bricy,

come on, south africa? post apartheid south Africa is a disaster, Rusia? Rusias economy is smaller than Mexicos,

The BRICS countries are dialed in to economically surpass the West within decades. This isn't outlandish speculation but rather predictions by mainstream economists and experts. The West is in decline, drowning in an insurmountable mountain of debt, and the entire pan-Atlantic + Japan banking system is completely insolvent. The BRICS don't share these problems and have strong growth predictions.

Former president of The World Bank, James Wolfensohn, addressed Stanford Graduate School of Business a couple of years ago about this shift:

[Glista]

again the ants and the elephant, in this case the elephant being the US, and the ants being somewhat bricy,

come on, south africa? post apartheid south Africa is a disaster, Rusia? Rusias economy is smaller than Mexicos,

SA is still Africa's largest economy and Russia has larger economy then Mexico. Don't be ignorant.

[magpie]

Well if you want to break US domination and influence, You do not use military means.

Your target has to be the $

[Condottiere 40K]

Seems pointless, considering they can just print more of it.

[Exarch]

Seems pointless, considering they can just print more of it.

and see the rest of the BRICS refuse to invest in any more US debt for fear of future devaluation, thereby pushing up interest rates in the US, curtailing economic growth and leading to mass unemployment and potentially unrest.

printing their way out of problems is a double edged sword, which is why calls for a stronger dollar are growing more and more stronger

[Heathen Hammer]

Hopefully, this will develop further. Perhaps, such organization could increase ties between non-Western powers and help them reduce and contain Western influence.

[Thorn777]

The BRICS countries are dialed in to economically surpass the West within decades. This isn't outlandish speculation but rather predictions by mainstream economists and experts. The West is in decline, drowning in an insurmountable mountain of debt, and the entire pan-Atlantic + Japan banking system is completely insolvent. The BRICS don't share these problems and have strong growth predictions.

Former president of The World Bank, James Wolfensohn, addressed Stanford Graduate School of Business a couple of years ago about this shift:

^These economics people forget there is various sets of rules to the games we play. BRIC growth is largely created by The West. The West can still unplug the BRIC economies in various ways if it wishes to. Specially since it more and more proves that this creation more and more becomes a situation of shooting one self in the foot. Thats why these BRIC meetings become more and more important to meet that equilibrium, becoming economically more self sustainable and create military counterweight before anyone else decides the jig is up.