Unite BRICS with bank and fund
Updated: 2013-03-28 22:40
The BRICS should unite more closely by taking concrete action to deepen mutual trust, says an article in the 21st Century Business Herald. Excerpt:
The BRICS summit, involving the leaders of Brazil, Russia, India, China and South Africa, which was held on March 26 in Durban, South Africa, dicussed the possibility of establishing a development bank of BRICS countries and establishing a unified foreign exchange fund worth around $240 billion.
If these proposals are implemented, their ability to resist the international balance of payments crisis and other currency crises will improve remarkably.
Leaders from China and Russia vowed to support BRICS countries to become an important platform for dialogue and cooperation on important global economic and political issues.
Establishing the development bank and foreign exchange fund would unite the five BRICS countries more closely and consolidate their common identity.
If all BRICS countries can pool their strength, they have the ability to compete with the West led by the United States.
China may replace the US as the world's largest economy in about 10 years, while India, Brazil and Russia will become the world's top five economies in about 25 years if they continue their current growth trends.
In other words, the current G7 will be reshuffled in 25 years, but without the US.
The five countries should improve their mutual trust and take into account each other's strategic concerns. Establishing the bank and the fund is an important step in deepening mutual trust among the five.