BRICS Mechanism Vital For Emerging Economies

Wednesday, 27 March 2013, 12:03 Hrs
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Rio De Janeiro: The framework of BRICS is a strategically significant platform for emerging economies to coordinate their stances, says a Brazilian writer.

BRICS consists of Brazil, Russia, India, China and South Africa, with the name formed by the initials of the five emerging economies. It was known as BRIC before South Africa joined the group in 2010.

The BRICS countries make up about 42 percent of the world's total population, 20 percent of the global economic output and 15 percent of world trade.

"The fact that these countries have come together to exchange ideas is already a great step forward compared with the lack of coordination among emerging economies two decades ago," Elias Jabbour, author of several books on China, told Xinhua.

Despite their similar economic conditions, the member countries also have some differences and disputes between them, such as trade frictions, noted the writer.

Jabbour suggested that the BRICS countries make compromises and take coordinated actions in their efforts to accomplish their shared strategic goals.

Meanwhile, significant consensus exists among the member countries on issues like the reform of the international financial system, and such consensus should be consolidated, the scholar added.

World Bank Welcomes BRICS Development Bank

The World Bank has welcomed the move by the BRICS countries to set up a development bank and vowed to work closely with the new lender.

Finance ministers from the BRICS members (Brazil, Russia, India, China and South Africa) agreed to establish the bank to fund infrastructure in the five emerging economies, Chinese Finance Minister Lou Jiwei said in South Africa.

"Establishing a development bank is a significant undertaking," the World Bank said in a statement.

"The World Bank will stand steady and work closely to partner with regional development banks in a bid to enhance the effectiveness of our collective work," it added.

According to Lou, the BRICS development bank would be complementary to the existing development institutions such as the World Bank and the Asian Development Bank.

However, the ministers did not discuss the initial contributions from each country to the bank.

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Source: IANS
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