• Wednesday, November 20, 2019

BRICS to eye joint bank, stock exchange tie-up at summit

Discussion in 'World Affairs' started by Sasquatch, Mar 29, 2012.

  1. Sasquatch

    Sasquatch INT'L MOD

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    The BRICS group of emerging world powerhouses - Brazil, Russia, India, China and South Africa - is set to outline plans at a summit this week for a joint development bank, while the five countries' stock exchanges will also move closer together.

    Officials say details of the initiatives still need to be agreed, but they herald a new level of ambition for a bloc that brings together about half the world's people but which has been criticised as an empty acronym.

    The Middle East, including oil imports from Iran, will also be discussed at Thursday's meeting in India, officials say.

    Security was tightened in the capital on Wednesday before the arrival of BRICS leaders including China's Hu Jintao.

    His visit drew protests from Tibetan activists, one of whom died earlier in the day after he set himself ablaze. Police arrested about a dozen Tibetans before the summit.

    BRICS leaders held their first summit in 2009 and have sought to increase their global influence to reflect their growing economic clout. But with radically different economies and systems of government, and competing priorities, the countries from four different continents have often struggled to find common cause.

    A significant announcement at this week's meeting is likely to be the plan for a joint development bank in the mould of the World Bank. Such an initiative would allow the countries to pool resources for infrastructure improvements and could eventually serve as a vehicle for lending during global financial crises such as the one in Europe, officials say.

    Brazilian Trade Minister Fernando Pimentel told reporters in Brasilia last week that the countries would sign a deal at the summit to study the creation of the bank.

    Sudhir Vyas, a senior Indian foreign ministry official, told reporters on Monday that the BRICS would have to determine how the bank would be structured and capitalised. Such an ambitious project would take time, he said.

    "We don't set up a bank every ordinary day," he said.

    The leaders are also expected to sign agreements allowing their individual development banks to extend credit to other members in their local currencies, a step towards replacing the dollar as the main unit of trade between them.

    FIVE NATION STOCK INDEX

    Benchmark equity index derivatives allowing investors in one BRICS country to bet on the performance of stock markets in the other four members without currency risk will be cross-listed on their stock exchanges from Friday, the exchanges said earlier this month.

    A senior Indian government source said the Middle East and energy security will be high on the agenda, including Iran. The Russian ambassador in New Delhi said this week that a discussion on Syria would be among his country's top priorities.

    While the plenary session on Thursday is likely to concentrate on common ground, bilateral meetings could touch on more sensitive issues.

    The exchange rate of China's currency has sparked protests, including from Brazilian manufacturers, for being undervalued. Most member countries also face a slowdown in their economies.

    "For different reasons, each of the (countries) has got some serious policy issues to deal with here that will determine whether they continue down the path we got everybody so excited about," said Jim O'Neill, chairman of Goldman Sachs Asset Management.

    O'Neill, who coined the BRIC acronym in 2001 as a catchy way to encapsulate the shift in global economic growth towards emerging markets, with South Africa added in 2010, predicts the bloc's GDP will exceed that of the United States within three years and sees China as the world's biggest economy by 2027.
     
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  2. Tridibans

    Tridibans FULL MEMBER

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    Its about time that we Asian countries change the current world order dominated by a few white western countries, still dreaming of ruling the world 60 years after the end of ww2.

    Though I believe USA will still remain the sole superpower, atleast in the foreseeable future. Anyways, its a nice start by the BRICS.

    OFF TOPIC: Just wanted to know does anyone else feel that South Africa should not have been there? I mean look at Indonesia/Turkey, heck even S.Korea has better prospects than S.Africa. S.A are at the most a regional power in southern Africa.
     
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  3. Sasquatch

    Sasquatch INT'L MOD

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    Well an African country for the BRIC and South Africa is currently the most stable and doing well, other choices could be Egypt which is only second to South Africa however Egypt is still suffering and it's economy is going down, I think Indonesia, Mexico, Nigeria, Turkey should be the next countries that should join the BRICS.
     
  4. WS-10 Engine

    WS-10 Engine BANNED

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    brazil is the largest economy in latin america.
    russia is the largest economy in eastern europe.
    india is the largest economy in south asia.
    china is the largest economy in east asia.
    south africa is the largest economy in africa.


    i would add right now:

    indonesia is the largest economy in south-east asia.


    in the future i would add:

    nigeria is the 2nd largest economy in africa.
    kazakhstan is the largest economy in central asia.
    iran is the 2nd largest economy in west asia.
    maybe saudi arabia or turkey.


    you should be a developing country to be in the club.
    and have a big population.
    fast growth.
     
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  5. ironman

    ironman SENIOR MEMBER

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    Well it seems Chinese economists in PDF were always wrong as usual..

    China pitches for setting up of development bank for BRICS
    The Hindu : Business / Economy : China defends BRICS bank move amid dollar discontent
     
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  6. Sasquatch

    Sasquatch INT'L MOD

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    Russia economy is projected to overtake Germany which is the biggest economy in europe.
     
  7. shuttler

    shuttler ELITE MEMBER

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  8. Water Car Engineer

    Water Car Engineer ELITE MEMBER

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    Nigeria-Indonesia-Mexico

    for me
     
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  9. Sasquatch

    Sasquatch INT'L MOD

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    Indonesia likely next after, Nigeria is a very strong player.
     
  10. shuttler

    shuttler ELITE MEMBER

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    I keep rooting for Pakistan. Hope they'll join the club soon!
     
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  11. WS-10 Engine

    WS-10 Engine BANNED

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    yes we need to include pakistan.
     
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  12. Fanling Monk

    Fanling Monk FULL MEMBER

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    I wish BRICS luck but I'm going to be the dissenting voice here. I think the group is enthusiastic now because the recent developments in the Middle East and perceive the west's hegemonic altitudes. And they certainly correct to think that ways. However when things cool down so will the interests.

    There are so much differences in politics and business practices among them. There are no foundations for this group to fall back on, and the egos of the top few will only make it worst. It will be a long road for it to be successful.

    Comparatively the UN has at least a tradition and precedents of events to guide its operations.
     
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  13. shuttler

    shuttler ELITE MEMBER

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    Yes there are a lot of differences in the group which defeat tighter coalition. But the objective of setting up the bank and other financial cooperations is to break away from the IMF/World Bank/USD/Euro hegemony which is partcularly helpful if developing countries can only obtain funding from the aforesaid organisations at cut-throat rates with tons of bundles attached. The multi-lateral trades within BRICS also help avoid transactions going through the financial system of the west which can act as counterweights neutralising any unreasonable sanctions as the BRICS financial orgs grow and enlarge their sizes over time.
     
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  14. Vatoz

    Vatoz FULL MEMBER

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    In Sweden you can buy trust funds named BRICT and BRICTS
    Many of the banks is putting turkey instead of s.africa. what I now only 1 bank puts s.african funds in there offers.
     
  15. RoYaL~GuJJaR

    RoYaL~GuJJaR BANNED

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    Good Move...:tup::tup: