Showing posts with label BRIC. Show all posts
Showing posts with label BRIC. Show all posts

Monday, April 11, 2011

DTN News - Asian Defense News: BRICS News ~ Politics To Temper "BRICS" Broader Ambitions

DTN News -
Asian Defense News: BRICS News ~ Politics To Temper "BRICS" Broader Ambitions
(NSI News Source Info) BEIJING, China - April 11, 2011:
When Indian media reported recently that Chinese troops were in Pakistan-administered Kashmir, the response from China was vehement.

"Such talk is utterly baseless and totally absurd," Chinese Foreign Ministry spokesman Hong Lei told reporters last week.

The episode was a small reminder of the big political differences that confront the leaders of five of the world's big emerging economies as they meet in China this week.

The leaders of the "BRICS" nations of China, Russia, India, Brazil and South Africa have voiced lofty goals, from rebalancing the global economy to giving the developing world more say in the G20 and IMF.

But while they together make up nearly a fifth of the global economy and they indeed share a lot of common gripes, they also have many mutual rifts, China's close relationship with Pakistan among them. Their broader aspirations will likely be frustrated by suspicion and diverging views on key issues.

Thursday's gathering in the southern Chinese beach resort of Sanya, attended by South Africa for the first time, will last just a few hours, according to diplomatic sources.

"They share their relative underdevelopment ... and their willingness to establish a new world economic order, which is where they have greater weight and where they are listened to," said Uri Dadush, head of the Carnegie Endowment for International Peace's International Economics Programme.

"Beyond that, the differences are huge. There are rivalries, large rivalries, particularly between China and India. And there are potential rivalries between Russia and China in the long term."

Even questions like whether the five should set up a more formal mechanism, like a secretariat, have no consensus; nor is there a clear idea about when or how they might add other members, such as Indonesia, Turkey or Mexico. The previous two summits, in Russia and Brazil, were inconclusive.

Still, while the summit is unlikely to achieve much concrete, it will give the world's big rising economies a venue to coordinate views on global financial reforms, commodity prices and other shared concerns.

"It is an important meeting; it's added a new member and it's demonstrated a commitment to position themselves in a political way," said Chris Alden, head of the emerging powers programme at the London School of Economics.

"They wanted to represent all of the emerging and developing world, so that's a rationale for bringing South Africa in, and all that suggests to me that there's a self-conscious political motivation in how they see themselves," he added.

A NOT-SO-UNITED FRONT

The BRICS group -- evolving from the BRIC term coined by Jim O'Neill of Goldman Sachs in 2001 -- has emerged as a loose united front to press the rich Western economies, especially the United States, which traditionally dominated global diplomacy.

South Africa asked to join the grouping at the G20 summit in Seoul and was invited by China to attend the Sanya gathering.

The five member countries accounted for just under 18 percent of the world's $62 trillion economy in 2010, though China's GDP was bigger than the rest of the BRICS put together.

Their economic clout is growing, as the developed world struggles with debt and low growth, and the BRICS are starting to operate as a common bloc in the G20, providing a counterpoint to the rich countries' club, the G7.

China says it hopes in particular that the Sanya meeting will be able to get the group to form a common stance on commodity price fluctuations at the G20 summit in the French city of Cannes later this year.

Yet their politics, in some cases, differ wildly.

Brazil, India and South Africa are vibrant democracies, with close ties to the United States. China, now the world's second-largest economy, is a Communist-ruled country with a low tolerance for political dissent and brittle relations with Washington.

China and India, despite a warming relationship, stare at each dubiously across a disputed, militarised border. India is also wary of China's tight friendship with Pakistan.

The BRICS countries do not even really understand that much about each other, noted Pei Changhong, head of the Institute of Finance and Trade Economics at the Chinese Academy of Social Sciences, a top government think-tank.

"We cannot say that we have a good understanding of these large developing countries ... These countries also don't understand much about China," he told a seminar last week.

It is far from certain that the summit in balmy Sanya will reach much of a firm conclusion about anything, even on economic topics.

Brazil has expressed concern that China's yuan currency is kept unfairly and intentionally cheap, fuelling a flood of cheap imports into the country. China is adamant the yuan will not be a subject of discussion.

The future direction of the grouping is a source of uncertainty too, with some members wanting a much more official structure for the BRICS.

Brazil's new president, Dilma Rousseff, who has adopted a much more pragmatic, result-oriented foreign policy, may have less patience for diplomatic niceties and will want the BRICS to be more than a political talk shop.

Senior Brazilian diplomat Gilberto Moura, who deals directly with the BRICS, said Brazil was very keen to turn the group into a political forum, trying to forge common positions on a host of global issues.

"We are no longer a creation of Jim O'Neill," he said, adding the situation in the Middle East and North Africa was likely to be on the agenda at Sanya.

Even here there has been a difference of opinion.

China, with Russia, India, Brazil and other developing countries have condemned the U.S.-led air strikes on Libyan forces.

South Africa, on the other hand, voted in favour of the United Nations Security Council resolution authorising the strikes. However, during a visit to Tripoli on Sunday, South African President Jacob Zuma called for NATO to stop air strikes.

China, though, has been somewhat less than enthusiastic about making BRICS into anything more than the rather informal bloc it now is.

India is also wary about the BRICS' future direction.

"There is a lot of cooperation in diverse areas such as climate change and trade to name a few. Even in the G20 the BRICS formulation is a very strong grouping. But it cannot be a blanket or a default south-south political formation," one senior Indian government official told Reuters.

(Additional reporting by Raymond Colitt in Brasilia and Abhijit Neogy in New Delhi; Editing by Alex Richardson)

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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News

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Saturday, April 10, 2010

DTN News: Indian Prime Minister Manmohan Singh Leaves For US, Brazil -- To Attend Summits

DTN News: Indian Prime Minister Manmohan Singh Leaves For US, Brazil -- To Attend Summits Source: DTN News / Int'l Media (NSI News Source Info) NEW DELHI, India - April 10, 2010: Indian Prime Minister Manmohan Singh Saturday left for the US and Brazil to attend a nuclear and two multilateral summits during which he will hold talks with the leaders of the US, China, Russia and France. The prime minister's special aircraft took off from the Indian Air Force station here at 9.40 a.m. Manmohan Singh will first attend the Nuclear Security Summit hosted by Obama in Washington. In Brasilia, he will take part in the India-Brazil-South Africa (IBSA) and Brazil-Russia-India-China (BRIC) Summits hosted by President Lula da Silva. In Washington, the Indian leader will meet Presidents Barack Obama of the US, Nursultan Nazarbaev of Kazakhstan and Nicolas Sarkozy of France, Prime Minister Stephen Harper of Canada and other world leaders. In Brasilia, he will have bilateral meetings with Presidents Lula da Silva of Brazil, Hu Jintao of China and Dmitry Medvedev of Russia. In a departure statement released late Friday, Singh said India was a "major stakeholder" in addressing issues related to nuclear security. "I expect the summit to focus on nuclear terrorism and proliferation of sensitive nuclear materials and technologies. These are legitimate concerns which require firm responses," he said. "India has a well-developed indigenous nuclear energy programme, which dates back six decades. We have an impeccable record of security, safety and non-proliferation which reflects our conduct as a responsible nuclear power." He said India had been a consistent advocate of complete and universal global nuclear disarmament. "We were among the first countries to call for a world free of nuclear weapons. I am encouraged that this approach is finding greater resonance today. "Nuclear energy is poised to play a growing role in addressing the developmental challenges of our times." "This will be possible only if we, as individual nations, and as a global community ensure the highest standards of security which reinforce public faith in the benefits of nuclear science." He said India was "an important stakeholder in this global endeavour". Manmohan Singh described the IBSA and BRIC as "groupings (that) reflect the growing role of emerging economies in shaping the global economic order". He said the IBSA "encompasses a wide range of activities which supplement the excellent bilateral relations we enjoy with each of these countries. Our coordination on important international issues has expanded, and our trilateral cooperation is beginning to bear fruit in many sectors. "The BRIC countries are among the largest and fastest growing economies with rich human and material resources. They represent the future of the global economic landscape. "We have a high stake in the revival of the global economy, an open trading system, energy security, combating climate change and addressing non-traditional threats to international security. "Relations with Brazil are an important pillar of our policy towards Latin America and have witnessed substantial expansion in recent years."

Thursday, June 11, 2009

DTN News: Crisis Speeds BRIC Rise To Power: Goldman's O'Neill

DTN News: Crisis Speeds BRIC Rise To Power: Goldman's O'Neill *Sources: Int'l Media & Reuters By Guy Faulconbridge and Michael Stott
(NSI News Source Info) MOSCOW - June 11, 2009: The global crisis means China and other emerging market powers will overtake developed world economies even more quickly, the Goldman Sachs economist who coined the BRIC concept told Reuters. BRIC leaders in 2008: Manmohan Singh (India), Dmitry Medvedev (Russia), Hu Jintao (China) and Luiz Inácio Lula da Silva (Brazil).
In economics, BRIC or BRICs is an acronym that refers to the fast growing developing economies of Brazil, Russia, India, and China. The acronym was first coined and prominently used by Goldman Sachs in 2001. Goldman Sachs argued that, since they are developing rapidly, by 2050 the combined economies of the BRICs could eclipse the combined economies of the current richest countries of the world. Goldman Sachs did not argue that the BRICs would organize themselves into an economic bloc, or a formal trading association, like the European Union has done. However, there are strong indications that the "four BRIC countries have been seeking to form a "political club" or "alliance", and thereby converting "their growing economic power into greater geopolitical clout". One of the recent indications was from a BRIC Summit meeting in 2008, in the Russian city of Yekaterinburg between the foreign ministers of the BRIC countries. Also in his Latin America trip Russian President Dmitry Medvedev, while visiting Brazil, met with Brazilian President Luiz Inácio Lula da Silva and agreed to visa-free travel. Medvedev has also recently made a trip to New Delhi, India to meet with Indian President Prathiba Patil and Prime Minister Manmohan Singh to discuss a nuclear deal as well as agreeing to cooperate in the spheres of finance and financial security, tourism, culture and fighting drug trafficking. Goldman Chief Economist Jim O'Neill said China's economy was now likely to overtake the United States in less than 20 years time and the four BRIC countries combined -- Brazil, Russia, India and China -- could dwarf the G7 over the same period. "Their relative rise appears to be stronger despite the rather pitifully thought out views by some a few months ago that the BRIC 'dream' could be shattered by the crisis," he said in a telephone interview from London. O'Neill invented the term BRIC in 2001 when he forecast that Brazil, Russia, India and China would overtake some of the world's top economies in the first half of the 21st century, becoming building blocks of a new world order. "We now conceive of China challenging the U.S. for number one slot by 2027 and ... the combined GDP of the four BRICs being potentially bigger than that of the G7 within the next 20 years," he added. "This is around 10 years earlier than when we first looked at the issue." Goldman is forecasting that the world economy will contract by 1.1 percent this year while BRIC economies will grow by an average of 4.8 percent, O'Neill added. "They are dominating the world growth picture even more than when the world was booming, and this is despite a revised very weak forecast for Russia in 2009," he said. "China has had a good crisis. In terms of China's role in the world the crisis has arguably been very helpful because it has forced China to realize that the next stage of their development cannot be led by export growth." Goldman is forecasting Chinese growth of 8.3 percent in 2009 and 10.9 percent in 2010, while it sees the world economy growing by just 3.3 percent next year. India is predicted to grow at an average rate of 6.3 percent from 2011 to 2050, China 5.2 percent, Brazil 4.3 percent and Russia -- constrained by forecasts of a declining population -- just 2.8 percent. BRIC POWER? The four BRIC countries have been trying to form a political club to convert their growing economic power into greater geopolitical clout. But is unclear how such different countries will work together. The leaders of Brazil, Russia, India and China will meet in the Russian city of Yekaterinburg on June 16 for the first summit since the international downturn struck their economies. "Arguably because China is the biggest of the four in terms of its current size and potential, they are the ones who are most disinterested in the BRIC grouping," O'Neill said. "It is primarily Russia, but also Brazil, that is interested in having these get-togethers and meetings." O'Neill said BRIC was unlikely to become a powerful political institution on the world stage but could serve a temporary purpose -- to prompt reforms. "I think BRIC as an institution is a very useful threat and inter-temporal political grouping to force more realistic change of global institutions," O'Neill said. He said the G8 should be reformed, with China, India and Brazil taking the places of eurozone members Germany, France and Italy, which he said should be represented by the EU and European Central Bank. Russia is already a member of the G8. O'Neill said the idea floated by Zhou Xiaochuan, governor of the People's Bank of China, to make the International Monetary Fund's Special Drawing Rights (SDR) the basis of a new supranational currency was a fascinating idea. He said he thought the idea meant that China would have to allow more convertibility of the yuan and that the idea of including yuan in the SDR in six years' time was conceivable.