Brasília – This Thursday (29th), the Brazilian president Dilma Rousseff called on the international community to give greater respect and appreciation to the Brics countries – Brazil, Russia, India, China and South Africa. She emphasized that the bloc alone will be responsible for 56% of the world economy, according to International Monetary Fund (IMF) forecasts. Rousseff denounced protectionism and advocated balanced economic growth to counter the ongoing crisis and its consequences.
“The Brics have become the most important motor of the world economy,” said the president, at the closing of the 4th Brics Summit, in New Delhi, India. She also said the developed countries have “exported the crisis” to other regions and the quest for solutions for the problem has led to stronger protectionism.
Rousseff claimed that the exclusive solutions adopted by some governments alone will not do: “They bring about unfair barriers.” The president praised the European Central Bank’s aid to certain troubled countries. According to her, the moment calls for attention to the labour market, recession and the possibility of unemployment as a consequence of the world economic crisis.
The president spoke on the need of reform, for greater economic balance, in international financial organizations such as the International Monetary Fund (IMF) and the World Bank. Rousseff said these organizations are required to reflect the world. “[There has to be] reflection on the weight of emerging countries. The Brics have much to say when it comes to economic development and the environment,” she said.
A common bank
Brazil, Russia, India, China and South Africa will work for a development bank targeting the Brics. A workgroup comprising technicians from the five nations will conduct studies to organize and structure the financial institution. A joint statement was signed by presidents Rousseff, Dmitri Medvedev (Russia), Hu Jintao (China) and Jacob Zuma (South Africa), and the prime minister of India, Manmohan Singh, at the closing of the 4th Summit in India.
The president said the creation of the bank is a “positive sign.” According to her, the Brics show that it is feasible to have economic growth while distributing income and generating jobs. She praised the joint initiative of adopting local currencies for transactions within the bloc. “The Brics are a dynamic element in international trade,” she said.
The proposal to create a specific development bank for the Brics was presented by the Indian prime minister. The institution is meant as an alternative of sorts to the World Bank and the IMF. The details concerning its creation will be arranged by the workgroup.
*Translated by Gabriel Pomerancblum
