STOCK MARKET BSE NSE

BRICS leaders discuss how to shape global trade, finance

India would be looking at getting support for a strongly worded statement on global terrorism,

Published: 16th October 2016 05:46 PM  |   Last Updated: 16th October 2016 05:47 PM   |  A+A-

Modi-Putin-PTI

Prime Minister Narendra Modi with Russian President Vladimir Putin Chinese President Xi Jinping South African President Jacob Zuma and Brazilian President Michel Temer at the BRICS Summit 2016. | PTI

By Associated Press

BENAULIM: The leaders of five of the world's fast-rising powers were meeting Sunday in the southwestern Indian state of Goa for their annual summit at a time when their ability to shape the global dialogue on international politics and finance is increasingly being questioned.

Brazil, Russia, India, China and South Africa, or BRICS, face the tough task of asserting their growing influence as a power group even as they bridge their own trade rivalries to help grow their economies.

President Xi Jinping of China, Russian President Vladimir Putin, Brazilian President Michel Temer and South African President Jacob Zuma joined Indian Prime Minister Narendra Modi at the summit venue in a five-star hotel in Goa's Benaulim village.

The group represents nearly half of the world's population and a quarter of its economy at $16.6 trillion. But BRICS are battling the economic slowdown and politically each member wants the others to support its policies — Russia on Syria, China on the South China Sea and India on its fight against terrorism.

The economic clout of the group has flagged in recent years with the slowdown.

In Russia, the decline in global oil and commodity prices coupled with biting Western sanctions have dealt a blow to the economy. The Chinese economy has slowed to its slowest pace in 25 years, although its 7 percent growth rate still places it among the fastest growing global economies.

South African remains caught in severe economic turmoil with the country's credit rating at risk of being downgraded to junk by year-end.

Brazil is only just emerging from months of the worst economic recession it has seen since the 1930s, a situation that was further worsened by recent political turmoil.

India, although the fastest growing country in the world at 7.5 percent annually, is grappling with widespread poverty and the challenge of strikes against militants in Kashmir.

When they sit down to talk, the leaders will attempt to push their own interests.

China, looking to expand access for Chinese goods, is keen that the BRICS adopt a free trade agreement that would open up their markets further. But the other members of the group, already burdened by cheap Chinese imports and huge trade deficits with Beijing, could shoot down any such proposal.

India would be looking at getting support for a strongly worded statement on global terrorism stemming from its own concerns about militants crossing the border from Pakistan into Indian-controlled Kashmir.

Other proposals that could find favor would be measures to promote business, such as easing visa regimes to allow long-term, multiple entry visas to business leaders.

The BRICS leaders could also push for more investments from China, especially in funding infrastructure projects, something that other BRICS countries are seeking. In this context, the group may decide to speed up disbursal of infrastructure financing through the New Development Bank that the BRICS countries set up in 2014 as an alternative to the International Monetary Fund.

The leaders are expected to push through a decision to create their own credit rating agency, one which they feel would treat developing countries more fairly, unlike the existing three main rating agencies that traditionally favor Western economies.

Another key outcome would be the setting up of a think tank to provide new ideas on multilateral funding to help shift the global dialogue on international finance.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp