EMERGING MARKETS TO DICTATE POLICY

Sky News 14/4/11


Summit Shows Power Shift From US And Europe Share Comments
5:55am UK, Thursday April 14, 2011

Holly Williams, Beijing correspondent

A summit of the world’s biggest emerging economies has highlighted a shift in power away from the US and Europe.
The populations of Brazil, Russia, India, China and South Africa account for 40% of the world's people.

And those countries are experiencing the kind of economic growth that most in the West can only dream about.

Today's summit meeting of leaders from the five nations in the Chinese resort of Sanya will try to parlay that growth into a greater role in global financial decision-making.

The EU and America are still struggling to emerge from the financial crisis.



Brics: The Facts
:: The five Brics countries accounted for 18% of the world's $62 billion economy in 2010

:: By 2050, it is predicted three of the world's largest four economies will be in Asia

:: China and India account for 33% of the world's six billion population

source: Reuters




But the five developing countries - known as Brics, an acronym coined by the investment bank Goldman Sachs - account for 45% of the world's economic growth between them.

China, in particular, has emerged from the downturn stronger than ever, buying up tens of billions of pounds of debt to help bail out EU countries including Greece, Portugal and Spain.

The Asian country is also a buyer of US debt, holding more than one trillion dollars in treasury bills.

The Brics countries have already successfully lobbied for greater influence at the International Monetary Fund, the intergovernmental body that oversees the global financial system.

Developing countries were granted a 6% increase in voting rights in November.

"The other aspect of that push is a drive to get bodies like the IMF and the World Bank to accept the economic models that these countries have been developing," said Duncan Innes-Ker of the Economist Intelligence Unit.

"BRICS countries are using a more state-led development model. They are keen for a more open attitude to their approach."



The Brics leaders are expected to issue a joint statement after the summit



Aspirations to leadership positions on those organisations are also harboured by the five countries.

Brazilian president Dilma Rousseff recently complained to journalists in Beijing that the presidency of the IMF and the World Bank "cannot be a systematic rotation between the US and Europe, with the other countries excluded."

But their shared concerns may go beyond the financial.

Following the summit meeting today, the BRICS leaders are expected to release a statement condemning the use of force in the Middle East and North Africa, calling instead for dialogue.

China, Russia, Brazil and India have already condemned the US-led strikes against the Libyan regime.

"These countries want global clout," said Mr Innes-Ker.

"Most of these countries are keen to be global powers and want their voices heard at the highest levels of international discussion.

"And given that they represent nearly half of the world's population and are the motors driving forward global growth, it's reasonable for them to demand a greater say."

There was a report on Radio 4 last week that Indonesia was expected to join the Brics.

AnnaEsse wrote:There was a report on Radio 4 last week that Indonesia was expected to join the Brics.

I don"t know much about Indonesia, but certainly the Brics should have more say and they will. America is played out, their wrangling now over measures
to accept cuts , is like Britain, but no matter how painful , we must take the Medicine and make sure the Banks are governed properly . With online
banking so popular now do we need so many Banks on the High Street?. Some American Economist on Bloomberg reckons it wll take the U.S. TWELVE
YEARS to repay it"s debt, which I think stands at $4 TRILLION.